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Himatsingka Seide Limited reported its Q4 FY25 and Full Year FY25 financial performance and strategic updates during its investor call on May 30, 2025.

• Total income for Q4 FY25 marginally corrected by approximately 3% to ₹682 crore, compared to ₹702.8 crore in the previous year. This was attributed to recalibration initiatives concerning brand portfolios.
• For the full fiscal year FY25, consolidated total income remained largely range-bound at ₹2,843 crore, against ₹2,862 crore in FY24.
• Capacity utilization for the quarter stood at 99% for the spinning division, 60% for sheeting, and 68% for terry divisions.
• The company is nearing the completion of its brand recalibration exercise, with approximately ₹150 crore of annual impact remaining to be made up. This involves reducing exposure to or exiting certain international brands while enhancing its portfolio in India.
• Growth in Q1 FY26 is expected to be muted due to the imposition of tariffs, but the company anticipates organic growth and improved capacity utilization from Q2 FY26 onwards.
• In the Indian market, Himatsingka operates with three brands: Himeya (premium bedding/bath), Atmosphere (drapery/upholstery), and Liv (mass bedding/bath). The company aims for India revenues to comfortably cross ₹100 crore and inch towards ₹200 crore in FY26. India revenue for FY25 was closer to ₹100 crore, slightly below. The India branded business is expected to achieve approximately 15% EBITDA margins once it reaches a scale of around ₹200 crore.
• The recently signed Free Trade Agreement (FTA) between India and the UK is seen as an emerging opportunity, with enhanced dialogue with UK clients. However, the full benefits are expected only once the FTA comes into effect, estimated to be in about a year.
• Regarding US tariffs, the 10% tariff on Indian products is expected to have a slight short-term impact on revenues and operating margins. Despite this, management sees potential opportunities given the differential tariffs for India and China, reinforcing the “China Plus One” theme. There are also media reports questioning the legal validity of these tariffs, which the company cannot verify.
• The company continues to focus on its deleveraging initiatives. Consolidated net debt stood at ₹2,425 crore, down from ₹2,634 crore in the previous year. The long-term target is to bring down debt to ₹1,500 crore to ₹1,700 crore over a 2-3 year horizon. For FY26, an additional incremental deleveraging of ₹100 crore to ₹200 crore is expected from non-core real estate hive-offs and organic reduction.
• Capex for FY26 is expected to be muted, significantly lower than the typical organic capex requirement of approximately ₹60 crore.
• Sundry debtors have increased from an average of 90 days in FY23 to about 140 days, primarily due to higher client credit requirements and elongated supply chains. The company aims to reduce this to approximately 90 days over the next 18 months.
• The company reported a ₹94.6 crore hit in goodwill impairment for the quarter and the year, related to the repositioning and calibration of its brand portfolio, which included reducing exposure to or exiting certain international brands like Tommy Hilfiger and other licensed brands.
• Mr. Shrikant Himatsingka, Executive Vice Chairman & Managing Director, highlighted the company's focus on strengthening its financial position, deleveraging, and optimizing working capital cycles.

Himatsingka Seide Limited announced its consolidated financial results for the quarter and financial year ended 31 March 2025 on 29 May 2025. Key highlights are:

• For the financial year ended 31 March 2025 (FY25):

  • Total Revenue stood at ₹2,843.27 Crores, a marginal decrease from ₹2,862.59 Crores in FY24.
  • EBITDA was ₹579.22 Crores, down from ₹617.33 Crores in FY24, with EBITDA Margin at 20.4%.
  • Profit After Tax (PAT) was ₹76.04 Crores, compared to ₹112.83 Crores in FY24.

• For the quarter ended 31 March 2025 (Q4 FY25):

  • Total Revenue was ₹681.99 Crores, a decrease from ₹702.80 Crores in Q4 FY24.
  • EBITDA stood at ₹142.86 Crores, down from ₹150.55 Crores in Q4 FY24, with EBITDA Margin at 20.9%.
  • PAT was ₹11.94 Crores, significantly lower than ₹23.74 Crores in Q4 FY24.

• Business Update:

  • The Q4 operating performance saw a 3% correction in Total Income, attributed to recalibration initiatives concerning the brand portfolio.
  • Capacity utilization in Q4 FY25 was 99% for the Spinning Division, 60% for the Sheeting Division, and 68% for the Terry Towel Division.
  • The company is expanding its presence across channels and geographies, operating in the Indian market with three brands: Himeya, Atmosphere, and Liv.
  • Potential benefits from the recently signed Free Trade Agreement (FTA) between India and the UK are anticipated once it comes into effect.
  • New tariffs imposed by the United States are expected to have a slight short-term impact on Revenues and Operating Margins, but also present potential opportunities due to differential tariff rates.
  • ESG initiatives are on track to achieve 100% renewable energy by 2030.
  • The company has strengthened its financial position by reducing Consolidated Net Debt to ₹2,425 Crores in FY25, down from ₹2,634 Crores in the previous year.

• Management Commentary:

  • Mr. Shrikant Himatsingka, Executive Vice Chairman & Managing Director, stated, "Our FY25 financial performance remained range bound as we are in the process of recalibrating our revenue streams and therefore witnessed a marginal correction in Consolidated Total Income for FY25. We have strengthened our balance sheet and remain focused on increasing our capacity utilisation levels and market share across key regions and channels we operate in."

Himatsingka Seide Limited announced that its Board of Directors, at a meeting held on May 28, 2025, approved the re-appointment of Grant Thornton Bharat, LLP as the Internal Auditors for the Financial Year 2025-26.

Key details regarding the re-appointment include:

• The re-appointment was approved during the Board meeting held on May 28, 2025, which commenced at 04:30 p.m. and concluded at 07:50 p.m.
• Grant Thornton Bharat, LLP is a member of Grant Thornton International Ltd. and is one of India's preeminent professional services firms.
• The firm has over 11,000 people across 19 offices in India.
• They offer a range of services including Assurance, Tax, Advisory, Technology, and Consulting.