Kathmandu: Triveni Spinning Mills, a major player in Nepal’s textile industry, has announced a significant surge in its business, achieving a turnover of Rs 3.48 billion in the last fiscal year.
This represents a substantial 43 percent increase in revenue compared to the Rs 2.43 billion recorded in 2024 and Rs 2.38 billion in 2023. The company attributes this robust growth primarily to a sharp rise in exports to India and Turkey, which together accounted for 84 percent of its total business, a notable increase from 72 percent in the previous year.
Despite the impressive top-line growth, the company’s bottom line tells a different story. For the second consecutive year, Triveni Spinning Mills has reported a net loss, citing high interest expenses as the primary cause. This financial pressure is further evidenced by the company’s negative cash accruals.
The positive momentum in sales has continued into the current fiscal year, with the company reporting a turnover of Rs 2.65 billion in the first ten months. While operating profit improved to 4.04 percent from 2.11 percent in the previous year, it was insufficient to offset the high financial costs.
The company’s capital structure has come under considerable strain, with its overall gearing ratio increasing to 3.78 times from 2.85 times a year earlier, indicating a high level of debt. The company stated that this deterioration is a direct result of the erosion of its tangible net worth due to persistent losses in 2024 and 2025. Although its debt-servicing ability has shown marginal improvement, with the interest coverage ratio rising to 0.71 times from 0.38 times, its capacity to meet interest obligations remains at a moderate level.
Established in 1995 and converted into a public company in 2023, Triveni Spinning Mills is operated by the Sanghai family and produces a range of polyester, viscose, and acrylic blended yarns, with an annual production capacity of 18,000 metric tons. The company, chaired by Ramchandra Sanghai, recently underwent a credit rating for loans totalling Rs 3.03 billion, comprising NPR 1.30 billion in long-term debt and Rs 1.73 billion in short-term debt.
Adding to its financial challenges, the company has been in a dispute with the Nepal Electricity Authority (NEA) over unpaid dedicated feeder surcharges for the period between August 2016 and April 2018. The NEA had initially claimed NPR 869 million from the mill. Following negotiations, this potential liability was re-evaluated and reduced to Rs 321 million as of September 28, 2025. An agreement has been reached to pay this amount in 28 instalments, and the company has already made the first payment of Rs 11.4 million as a deposit through Himalayan Bank.
Comment Here