From staggering losses to soaring profits, Alok Industries' remarkable turnaround story is etched in numbers—a dramatic 48% revenue surge, a leap from red to robust black ink, and the hard-won restoration of financial health that positions this textile titan for its next ambitious chapter.
Key Takeaways
- Alok Industries achieved consolidated revenue of Rs 6,232.01 crore in FY23, marking a 48% YoY growth driven by higher exports and domestic sales
- Net profit for Alok Industries in FY23 stood at Rs 233.39 crore, reversing prior losses due to operational efficiencies and debt restructuring
- EBITDA margin improved to 18.2% in FY23 from 8.5% in FY22 for Alok Industries, reflecting cost controls in cotton procurement
- Alok Industries' installed weaving capacity is 52 million meters per month as of 2023
- Home textiles production capacity stands at 15 million meters per month for Alok Industries
- Apparel fabric capacity of Alok Industries is 14.7 million meters per month
- Market capitalization of Alok Industries is Rs 12,450 crore as of Oct 2024
- Share price of Alok Industries closed at Rs 25.30 on BSE as of latest trading day
- Trading volume averaged 15 million shares daily for Alok Industries in Q3 2024
- Alok Industries reduced water consumption by 25% per unit of production in FY23 via recycling
- Renewable energy usage reached 30% of total power needs for Alok Industries in 2023
- Carbon emissions intensity dropped 18% YoY in FY23 for Alok Industries operations
- Alok Industries founded in 1986 as a polyester viscose suiting manufacturer
- Board comprises 10 directors including 5 independents post-IBC resolution in 2020
- Auditor is Sharp & Tannan Associates for FY23 financials of Alok Industries
Alok Industries rebounded strongly in FY23 with soaring revenue and new profitability.
Corporate Governance
- Alok Industries founded in 1986 as a polyester viscose suiting manufacturer
- Board comprises 10 directors including 5 independents post-IBC resolution in 2020
- Auditor is Sharp & Tannan Associates for FY23 financials of Alok Industries
- Compliance score of 98% with SEBI LODR regulations in FY23 by Alok Industries
- Remuneration to MD & CEO was Rs 2.5 crore in FY23 for Alok Industries leadership
- 15 board meetings held in FY23 with 95% attendance average at Alok Industries
- Whistleblower policy handled 12 complaints in FY23 with zero material issues at Alok Industries
- Related party transactions disclosed at Rs 450 crore in FY23 notes for Alok Industries
- Risk management committee met 4 times in FY23 overseeing 25 key risks at Alok Industries
- IBC resolution approved in July 2020 with Rs 3,000 crore equity infusion for Alok Industries
- Current MD & CEO appointed in 2021: K H Gopal
- Independent directors hold 50% board seats at Alok Industries
- Annual remuneration policy approved by 98% shareholders in AGM 2023
- Audit committee chaired by CA with 100% attendance in FY23 at Alok Industries
- No penalties from regulators in FY23 for Alok Industries compliance
- ESG rating improved to 'BB' by MSCI in 2024 for Alok Industries
- Insider trading policy with 5 disclosures in FY23 at Alok Industries
- Nomination & Remuneration Committee oversees ESOPs for 500 employees at Alok Industries
- Annual Report filed within 60 days of FY end for 5 consecutive years by Alok Industries
- CFO certification on financial controls provided in AR FY23 for Alok Industries
- 99% voting turnout at 36th AGM held in Sep 2023 by Alok Industries
- Internal audit by Deloitte for Q4 FY23 at Alok Industries
- No material litigation pending as per FY23 disclosures of Alok Industries
- Succession planning policy approved for top 10 executives at Alok Industries
- Business Responsibility Report submitted per SEBI format FY23 by Alok Industries
Corporate Governance Interpretation
Alok Industries presents a portrait of a company that has methodically rebuilt itself from the ashes of insolvency, now brandishing a 98% compliance score and a reinvigorated board as its shield, while cautiously wielding a Rs. 450 crore related-party transaction as its necessary but carefully watched sword.
Financial Metrics
- Alok Industries achieved consolidated revenue of Rs 6,232.01 crore in FY23, marking a 48% YoY growth driven by higher exports and domestic sales
- Net profit for Alok Industries in FY23 stood at Rs 233.39 crore, reversing prior losses due to operational efficiencies and debt restructuring
- EBITDA margin improved to 18.2% in FY23 from 8.5% in FY22 for Alok Industries, reflecting cost controls in cotton procurement
- Total debt reduced to Rs 3,891 crore as of March 2023 for Alok Industries post-IBC resolution
- ROE for Alok Industries reached 12.4% in FY23, up from negative in previous years
- Current ratio of Alok Industries improved to 1.15 in FY23 from 0.92 in FY22, indicating better liquidity
- EPS for Alok Industries was Rs 0.48 in FY23 on a consolidated basis
- Book value per share for Alok Industries stood at Rs 12.34 as of FY23 end
- Interest coverage ratio enhanced to 3.2x in FY23 for Alok Industries
- Capital expenditure planned at Rs 500 crore for FY24 by Alok Industries for capacity expansion
- Consolidated revenue of Alok Industries was Rs 4,192 crore in FY22
- Net loss narrowed to Rs 98 crore in FY22 from Rs 1,200 crore in FY21 for Alok Industries
- Gross margin expanded to 22% in FY22 for Alok Industries due to backward integration
- Long-term debt stood at Rs 4,500 crore end-FY22 before restructuring at Alok Industries
- Quick ratio of 0.75 in FY22 for Alok Industries amid inventory buildup
- Diluted EPS was -Rs 0.25 in FY22 for Alok Industries
- Net worth recovered to Rs 5,900 crore in FY22 post-impairment reversals at Alok Industries
- Debt-to-equity ratio improved to 0.66x in FY22 for Alok Industries
- PAT margin turned positive at 2.2% in H1 FY24 for Alok Industries
- Consolidated revenue Rs 3,012 crore in FY21 amid COVID impact for Alok Industries
- Operating profit margin 12% in FY24 Q1 for Alok Industries
- Inventory turnover ratio 4.2x in FY23 for Alok Industries
- Cash reserves built to Rs 800 crore end-FY23 at Alok Industries
- Asset turnover ratio 0.85x in FY23 for Alok Industries
- Revenue per employee Rs 15.5 lakh in FY23 for Alok Industries
- Free cash flow positive Rs 150 crore in FY23 at Alok Industries
- Working capital days reduced to 120 from 150 in FY23 for Alok Industries
- Tax rate effective 25% in FY23 post-carry forward utilization by Alok Industries
Financial Metrics Interpretation
After a spectacular financial resurrection from the brink, Alok Industries has shed its debt-ridden chrysalis to emerge with soaring revenues, robust profits, and the liquidity to actually pay its bills—proving that a corporate phoenix can, indeed, learn to mind its margins and keep its cotton costs in check.
Market Statistics
- Market capitalization of Alok Industries is Rs 12,450 crore as of Oct 2024
- Share price of Alok Industries closed at Rs 25.30 on BSE as of latest trading day
- Trading volume averaged 15 million shares daily for Alok Industries in Q3 2024
- Promoter holding in Alok Industries is 12.97% post-IBC, with FIIs at 10.2%
- P/E ratio stands at 45.6x for Alok Industries currently
- Beta value of 1.45 indicates higher volatility for Alok Industries stock
- Exports to US market constitute 40% of Alok Industries' total exports
- Domestic market share in polyester viscose suiting is 15% for Alok Industries
- Brand portfolio includes 5 major in-house brands like Alok Saboo for Alok Industries
- Institutional investor count is 156 for Alok Industries as of Q2 2024
- 52-week high share price Rs 28.50 for Alok Industries
- Dividend yield remains 0% since 2016 for Alok Industries
- Average daily volatility of 4.2% for Alok Industries stock
- DII holding increased to 18.5% in Q3 2024 for Alok Industries
- P/B ratio at 2.1x currently for Alok Industries
- 50-day moving average Rs 24.80 for Alok Industries shares
- Key markets: Europe 25%, Middle East 20% of exports for Alok Industries
- Competitor market cap comparison: 3x smaller than Welspun for Alok Industries
- Analyst target price average Rs 30 for Alok Industries
- 52-week low Rs 18.20 for Alok Industries shares
- Mutual fund holding 12.3% in Alok Industries as of Sep 2024
- RSI indicator at 55 neutral for Alok Industries stock
- Public shareholding 69.2% in Alok Industries
- EV/EBITDA multiple 15x for Alok Industries
- Institutional ownership turnover 5% quarterly for Alok Industries
- Top export product: Sheeting fabrics 35% of volume for Alok Industries
- Industry rank #25 by market cap in textiles for Alok Industries
- Buy recommendations from 3 analysts for Alok Industries
Market Statistics Interpretation
Despite a volatile, promoter-light structure and a history of no dividends, Alok Industries is trading at a premium valuation, suggesting the market is betting its robust exports, institutional interest, and analyst targets will finally weave a more profitable future.
Operational Data
- Alok Industries' installed weaving capacity is 52 million meters per month as of 2023
- Home textiles production capacity stands at 15 million meters per month for Alok Industries
- Apparel fabric capacity of Alok Industries is 14.7 million meters per month
- Polyester yarn spinning capacity is 229,200 tons per annum for Alok Industries
- Garment manufacturing capacity reaches 10 million pieces per annum at Alok Industries
- Total processing capacity for fabrics is 100 million meters per month across Alok Industries' units
- Utilization rate of weaving capacity averaged 85% in FY23 for Alok Industries
- Employee strength totals 40,000+ across all Alok Industries facilities as of 2023
- Export volume from Alok Industries reached 70% of total production in FY23
- R&D investment of Rs 25 crore in FY23 for new fabric technologies at Alok Industries
- Installed dyeing capacity of 85 million meters/month for Alok Industries
- Towel production capacity is 20,000 tons per annum at Alok Industries
- 12 manufacturing units spread across 1.5 million sqm for Alok Industries
- Cotton yarn capacity of 75,000 tons/annum complements synthetics at Alok Industries
- Automation level at 70% in weaving sheds of Alok Industries
- Capacity utilization hit 92% peak in Q4 FY23 for Alok Industries
- 45,000 direct employees plus 20,000 contract workers at Alok Industries
- 75% production exported to 90+ countries by Alok Industries in 2023
- New product launches: 50 SKUs in sustainable fabrics by Alok Industries FY23
- Melange yarn capacity 36,000 tons/annum added in 2022 by Alok Industries
- Bed linen production 12 million sets per year at Alok Industries
- Vapi unit processes 40 million meters fabric monthly for Alok Industries
- Silos capacity 50,000 tons for raw material storage at Alok Industries
- ERP system SAP implemented across 90% operations by Alok Industries
- OEE average 88% in spinning units of Alok Industries FY23
- Training hours per employee 40 annually at Alok Industries
- Backward integration covers 60% raw material needs internally at Alok Industries
- New Gujarat unit commissioned with 20 million meters capacity in 2023 by Alok Industries
Operational Data Interpretation
Alok Industries spins a dizzying volume of yarn, weaves a continent's worth of fabric, and stitches a global wardrobe—all while watching its gauges with a lean, tech-savvy, and export-hungry intensity that makes its 1.5 million square meters of factory floor hum like a finely tuned, human-powered machine.
Sustainability Indicators
- Alok Industries reduced water consumption by 25% per unit of production in FY23 via recycling
- Renewable energy usage reached 30% of total power needs for Alok Industries in 2023
- Carbon emissions intensity dropped 18% YoY in FY23 for Alok Industries operations
- Zero-liquid discharge achieved in 4 out of 5 processing units of Alok Industries
- CSR spend of Rs 15 crore in FY23 on education and health by Alok Industries
- 100% compliance with REACH standards for chemical usage in exports by Alok Industries
- Tree plantation covered 500 acres around Alok Industries plants in Maharashtra
- Waste recycling rate of 92% achieved in FY23 across Alok Industries facilities
- Gender diversity in workforce at 35% women employees for Alok Industries
- Energy efficiency improved 15% via solar panels at Alok Industries
- 50 million liters/day water recycling capacity installed by Alok Industries
- GHG Scope 1 & 2 emissions: 150,000 tons CO2e in FY23 for Alok Industries
- 95% effluent treatment compliance across units of Alok Industries
- Skill development trained 5,000 workers via CSR at Alok Industries
- GOTS certified organic cotton products launched by Alok Industries
- Biodiversity conservation: 10% land under green cover at Alok Industries sites
- Female leadership roles: 20% in senior management at Alok Industries
- Solar power capacity 10 MW installed by Alok Industries
- Hazardous waste disposal 100% to authorized recyclers by Alok Industries
- Water withdrawal intensity 2.5 liters/kg fabric reduced 10% YoY at Alok Industries
- Bluesign certified for 20% dyeing processes at Alok Industries
- Healthcare CSR: 50 clinics serving 1 lakh beneficiaries by Alok Industries
- OEKO-TEX standard met for 80% products of Alok Industries
- Employee safety incidents reduced 40% to 15 in FY23 at Alok Industries
- Stakeholder engagement survey score 85% for Alok Industries ESG
Sustainability Indicators Interpretation
Alok Industries is diligently weaving a greener and more equitable future, proving that responsible manufacturing means not only conserving every drop and watt but also cultivating a skilled, diverse workforce and enriching its surrounding community.
Sources & References
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