Experienced management and established presence in the industry
The group is promoted by Mr. Mohmed Umar General and his three sons, Mr. Mohmed Amin General, Mr. Mohmed Juned General and Mr. Mohmed Zaid General. The group has a presence since 1995 and has more than two decades of established track record in the textile industry. The group has longstanding relationships with its customers and suppliers of over two decades. The established track record of operations and experience of the management has helped the group to develop healthy relationships with its customers and suppliers.

Improvement in operating performance
The revenue of the group stood range bound at Rs. 199.77 Cr. in FY2024 as compared to Rs.195.73 Cr. in FY2023. However, the revenue is expected to improve in the near term on account of recent capex undertaken. Further, in 6MFY2025 revenue improved to ~Rs.148.70 Cr. against Rs. 94.13 Cr. in 6MFY2024. The operating profit margin of the group improved to 22.25 percent in FY2024 as compared to 14.54 percent in FY2023. Further, the PAT margin of the group improved to 11.33 percent from 5.75 percent in FY2023. The improvement in the profitability margins of the group is primarily on account of lower material cost during the year.
Going ahead, the ability of the group to continuously improve its overall operating performance on the back of capex undertaken over the medium term will remain a key monitorable.

Proximity to raw material and geographical diversification
The manufacturing facilities of General group are located at Surat, a textile hub of India which ensures regular supply of raw materials and easy reach to customers. General Group has PAN India presence and caters to major regions such as Maharashtra, Gujarat, Delhi and Bengaluru with longstanding relationships with customers and suppliers. The group enjoys easy connectivity to road & rail, leading to better lead -time and facilitates delivery of finished products in a timely manner. Further, its presence in the textile manufacturing region offers advantages such as easy availability of raw material at competitive prices, cost effective grey fabric weaving and reduced logistics expenses.

Moderate Financial Risk Profile
The financial risk profile of the group is moderate marked by moderate net worth, gearing and moderate debt protection metrics.  The net worth of the group stood at Rs.167.09 Cr. in FY2024 as against Rs.117.04 Cr. in FY2024. The net worth improved on account of accretion of profits into reserves, and classification of USL of Rs.33.79 Cr. as Quasi Equity in FY2024 which was infused by promoters for recent capex and will remain in the business as per the sanction terms. The gearing level of the group stood at 1.34 times as on March 31, 2024 as against 0.74 times as on 31 March 2023. The total debt of the group stood at Rs.224.24 Cr. as on March 31, 2024, comprising Rs.149.67 Cr. of long-term debt, Rs.15.25 Cr. USL, Rs.32.77 Cr. of short-term debt, and Rs.26.54 Cr. of CPLTD. Interest Coverage Ratio of the group stood moderate at 4.51 times in FY2024 as against 4.54 times in FY2024. DSCR stood at 2.27 times in FY2024 as against 1.26 times in FY2023. The Debt/EBITDA levels stood at 5.01 times as of March 31, 2024, as against 3.03 times as of March 31,2023.
Further, the moderation in the gearing, and Debt/EBITDA levels in FY2024 is on account of the recent debt funded capex wherein the group has set up 180 water jet looms with an installed capacity of 194.40 lac meters / year and 120 air jet looms with an installed capacity of 140.40 lac meters/year. Furthermore, the group is also undergoing a capex for setting up of 4.9 MW hybrid power plant which is expected to commence operations from April 2025.
However, the financial risk profile of the group is expected to improve on account of envisaged benefits from the capex undertaken and no further debt funded capex plans in near term.

­Working capital intensive nature of operations
The group is having intensive working capital operations as evident from Gross Current Asset (GCA) of 263 days in FY2024 as compared to 167 days in FY2023. The inventory days stood at 137 days in FY2024 as against 72 days in FY2023. The debtor days stood at 102 days in FY2024 as against 92 days in FY2023. The creditor days stood at 209 days in FY2024 against 48 days in FY2023. The creditor days in FY2024 increased as it includes creditors for capex of around Rs.50-55 Cr which were fully paid in Q1FY2025. The average bank limit utilization of the group for fund-based limits stood moderate at ~79.47% and for non-fund-based limit it stood at ~82.39% for the past 6 months ending December 2024.

Going ahead, any further elongation in the working capital operations of the group will remain a key monitorable.