Wires and Fabriks (S.A.) Limited is an **ISO 9001:2015** certified industrial leader and a pioneer in the Indian **Technical Textiles** sector. Established in **1963** with **German machinery and technology**, the company has evolved into the premier manufacturer of **Paper Machine Clothing (PMC)** in the Indian sub-continent. It is one of a select group of global manufacturers capable of producing high-tier **SSB (Sheet Support Binder)** fabrics, the current gold standard in paper production technology. --- ### **Core Industrial Verticals and Product Portfolio** The company operates a specialized business model focused on the lifecycle of paper production, supplemented by renewable energy interests. * **Paper Machine Clothing (PMC):** The flagship division producing technical textiles essential for paper manufacturing. * **Forming Fabrics:** Includes **Single Layer**, **Double Layer**, **Triple Layer**, and advanced **SSB Fabrics**. The company was the first to introduce Double Layer (**1986**), Triple Layer (**1996**), and SSB (**2006**) technologies to the Indian market. * **Dryer Screens:** Engineered for efficient moisture removal in the drying section. * **Pulp & Technical Fabrics:** Heavy-duty textiles for pulp mills and specialized industrial filtration/separation. * **Metal Wire Cloth:** Maintaining a heritage in **Phosphor Bronze** and **Stainless Steel** wire cloth. * **Paper Making Chemicals:** Providing specialized chemical solutions that complement the hardware (fabrics) used in paper mills. * **Renewable Energy (Wind & Solar):** Operates a **Wind Power Plant** in **Jaisalmer** and utilizes **Solar Energy** through wheeling arrangements for captive consumption at its **Jaipur** manufacturing facilities, enhancing cost-efficiency and sustainability. --- ### **Strategic Infrastructure and 2025 Expansion** The company has recently transitioned into a high-growth phase following the completion of a major **Expansion cum Modernisation Project** in **2025**. * **Manufacturing Hubs:** Primary operations are concentrated in **Jaipur** (Industrial Area, Jhotwara) and **Jaisalmer**, Rajasthan. * **Technology Up-gradation:** Continuous investment in R&D and modern equipment serves as the primary defense against margin compression and competition from overseas suppliers. * **Capacity Utilization:** The **2025 expansion** was specifically designed to serve a larger customer base and drive improved financial performance by increasing production throughput for high-end synthetic fabrics. --- ### **Financial Performance and Capital Structure** Despite the capital-intensive nature of its recent modernization, the company has maintained a consistent dividend-paying track record and seen a steady rise in turnover. **Key Financial Metrics (Rs. in Lacs):** | Particulars | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | | :--- | :---: | :---: | :---: | :---: | | **Total Income** | - | **10,977.30** | **10,892.20** | **9,601.67** | | **PBIDT** | - | **1,875.98** | **1,922.78** | **1,223.25** | | **Profit After Tax (PAT)** | - | **148.77** | **134.06** | **93.20** | | **Dividend Per Share (Rs.)** | **0.10** | **0.10** | **0.10** | **0.10** | **Debt and Equity Profile (As of March 31):** | Component (Rs. in Lacs) | **2025** | **2024** | | :--- | :---: | :---: | | **Total Equity** | **5,033.00** | **4,885.65** | | **Non-Current Borrowings** | **8,408.05** | **4,936.93** | | **Short-Term Borrowings** | **2,924.46** | **2,381.34** | | **Current Maturities of LT Debt** | **1,301.94** | **919.74** | *Note: The increase in non-current borrowings in 2025 reflects the funding of the expansion project. Profit growth is expected to accelerate as the higher interest and depreciation from this CAPEX are absorbed.* --- ### **Market Dynamics and Export Strategy** The company is strategically positioned to capitalize on the rising per capita paper consumption in India and Asia, where growth rates currently exceed many global counterparts. * **Export Focus:** The company regularly exports to international markets, with a specific focus on the **fastest-growing Asian region**. * **Foreign Exchange Performance (Rs. in Lacs):** * **FY 2024-25:** Inflow of **3,422.37** vs. Outflow of **3,349.76**. * **FY 2023-24:** Inflow of **3,620.08** vs. Outflow of **3,770.79**. * **Inventory Strategy:** The company maintains higher inventory levels (affecting the **Inventory Turnover Ratio**) as a deliberate strategy to mitigate global shipping delays and container shortages, ensuring reliable delivery to export clients. --- ### **Risk Management and Credit Profile** The company operates under a formal **Risk Management Policy** to navigate market, credit, and liquidity uncertainties. * **Credit Ratings (2024-25):** * **Long-term Bank Facilities:** **IVR BBB** (Outlook: **Stable**) * **Short-term Bank Facilities:** **IVR A3+** (Reaffirmed) * **Currency Hedging:** To mitigate the risk of a strengthening Rupee, the company utilizes **forward covers** and **option contracts**. While exports provide a **natural hedge** for raw material imports, they do not fully cover capital goods procurement. * **Credit Risk Mitigation:** International sales are secured via **Letters of Credit (LC)** or **advance payments**. Domestic credit is managed through a **Credit Review & Monitoring System** with defined limits. * **Exposure Data:** Trade receivables stood at **Rs. 29.2 crore** as of March 31, 2025, compared to **Rs. 25.14 crore** in 2024. --- ### **Ownership and Governance** Wires and Fabriks (S.A.) Limited maintains a stable governance structure with a strong promoter backing. * **Parentage:** A subsidiary of **W & F Securities Private Limited**, which holds a **62.90%** equity stake. * **Shareholding Pattern (March 2025):** * **Promoters:** **74.81%** * **Public (Individuals/Corporate/Others):** **25.19%** * **Market Performance:** The stock is listed on the **BSE (ISIN: INE469D01013)**. Between March 2024 and March 2025, the share price rose **19.18%** (from **Rs. 146** to **Rs. 174**), significantly outperforming the **Sensex** growth of **5.11%**. * **Board Stability:** Key Independent Directors have been reappointed for **5-year terms** effective **July 2025**, ensuring continuity in strategic oversight.