| Established operations supported by experienced management
JBEL, which is a part of Jay Bharat Group and has been chaired by Mr. Jitendra Arya since 1985, started its business with the flagship firm Jay Bharat Dyeing and Printing Private Limited in the field of polyester textile dyeing and printing. The quality of the fabrics processed at Jay Bharat Dyeing & Printing, using the latest technology from India and abroad, brought immediate success to the group. The group has focused on penetrating into the core segments where it has operated. The group has expanded to cater to the requirements for other fabrics like cotton, viscose, PV, etc., and recently it has expanded the portfolio by entering into the manufacturing of yarns and yarn dyeing as well. The partners, Mr. Ramdas Jindal, Mr. Ayodhyaprasad J. Singhal, Mr. Himanshu S. Jariwala, and Mr. Jitendra Arya, have more than two decades of experience in the textile industry. The extensive experience of the partners has helped the company generate healthy relationships with its customers and suppliers in both domestic and global markets. Acuité believes that JBEL will continue to benefit from the partner’s established presence in the textile industry.
Steady Operating Performance
The group recorded improvement in the operating revenue which stood at Rs. 714.50 Cr. in FY2025 as compared to Rs.526.43 Cr. in FY2024. The improvement in revenue is on account of improved price realisations during the year as well as improvement in overall sales volume. The operating profit margin of the group marginally improved and stood at 10.75 per cent in FY25 as compared to 10.14 per cent in FY24. The PAT margins of the group declined and stood at 2.88 per cent in FY25 as compared to 4.01 per cent in FY24. The decline in PAT is mainly due to increase in depreciation and interest cost due to capitalisation of assets. Further, H1FY2026 revenues have improved and expected to surpass FY2025 achieved revenues in FY2026 while profitability is expected to moderate. Acuite believes, that the operating performance of the group would remain steady over the medium term on the back of ramp up in capacity expansion at the group level.
Moderate financial risk profile
The financial risk profile of the group remains moderate marked by healthy net worth, moderate gearing level and moderate debt protection metrics. The group’s net worth increased to Rs. 201.49 Cr. as on March 31, 2025 from Rs. 186.13 Cr. as on March 31, 2024 and Rs. 142.55 Cr. as on March 31, 2023. The improvement is on account of accretion of profits to reserves and equity capital infusion in FY25. Further, the group has raised funding of Rs. 50 Cr. through issue of equity shares, through private investors. The total debt of the group stood at Rs. 352.55 Cr. as on March 31, 2025 as against Rs. 282.80 Cr. as on March 31, 2024. The debt increased in FY25 as JBEL availed additional debt to fund its working capital requirements. The debt profile of the company comprises of Rs. 45.07 Cr. of unsecured loans (the group does not pay interest on loan from promoters. To other parties’ interest is paid @9% p.a.), term loans of Rs. 184.17 Cr, CPLTD of Rs. 36.75 Cr. and the Rs.85.76 Cr. of short-term borrowings pertaining to working capital demand loan and cash credit facility as on March 31, 2025. The capital structure of the entity remains moderate with the gearing of 1.75 times in FY25 as against 1.52 times in FY24. The TOL/TNW stood high at 2.51 times as on March 31, 2025 as against 2.17 times as on 31 March 2024. The debt protection metrics remained moderate as reflected in debt service coverage ratio (DSCR) of 1.34 times in FY25 as compared to 1.80 times in FY24. The interest service coverage ratio declined to 3.81 times in FY25 compared to 4.81 times in FY24. The debt to EBITDA stood high at 4.49 times in FY25 as compared to 5.19 times in FY24. Acuite expects the financial risk profile would remain moderate over the medium term due to steady accruals and long-term debt obligations.
|
| Moderately intensive working capital operations
The working capital cycle is moderate marked by gross current assets (GCA) of 116 days during FY2025 and 102 during FY2024. The inventory days stood stable at 70 days in FY25 as against 41 days in FY24. Further, the debtor days stood at around 31 days in FY25 as against 48 days in FY24. The creditor days of the group stood at 61 days for FY25 compared to 57 days for FY24. The average credit period received from its suppliers is around 30-60 days. The high level of payables in FY2025 is on account of higher purchase of material during the year end. Further, the reliance of working capital limits stood moderate at 87 per cent during the last 6 months ended September 2025. Acuite believes that the operations of the group would remain moderately intensive due to higher inventory holdings.
Competitive and fragmented industry
JBEL operates in a highly fragmented and competitive industry marked by the presence of a large number of organised and unorganised players, mainly on account of low entry barriers. The firm is exposed to intense competition from both domestic players and established players in the overseas market.
|
