Revenue and Profitability Trends
Over the seven-year period ending March 2025, Lakshmi Engg.'s net sales exhibited notable variability. The company’s revenue increased from ₹8.17 crores in 2019 to a peak of ₹14.79 crores in 2024 before moderating to ₹12.80 crores in 2025. This fluctuation reflects the cyclical nature of the industrial manufacturing sector and possible market demand shifts.
Operating profit margins, excluding other income, have seen a downward trend from a high of 39.29% in 2020 to 12.66% in 2025. Despite this contraction, the company maintained positive operating profits, supported by other income which contributed between ₹0.58 crores and ₹1.54 crores annually. The combined operating profit (PBDIT) declined from ₹5.57 crores in 2020 to ₹2.84 crores in 2025, indicating margin pressures possibly due to rising costs or competitive factors.
Profit after tax (PAT) followed a similar pattern, peaking at ₹3.35 crores in 2020 and declining to ₹0.84 crores in 2025. Correspondingly, the PAT margin decreased from 26.38% in 2020 to 6.56% in 2025. Earnings per share (EPS) also reflected this trend, with a high of 38.86 in 2022 before falling to 12.56 in 2025, adjusted for the face value change in 2021.
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Cost Structure and Expenditure
The company’s expenditure profile reveals a steady increase in employee costs, rising from ₹2.75 crores in 2019 to ₹5.17 crores in 2025, reflecting either workforce expansion or wage inflation. Raw material costs remained relatively stable, fluctuating around ₹1 crore annually, while other expenses increased from ₹2.84 crores in 2019 to ₹5.05 crores in 2025. These rising costs have contributed to the compression of operating margins.
Depreciation expenses also increased gradually, from ₹0.47 crores in 2019 to ₹1.19 crores in 2025, indicating ongoing capital investments and asset ageing. Interest costs rose from ₹0.21 crores in 2019 to ₹0.85 crores in 2025, consistent with an increase in borrowings.
Balance Sheet and Financial Position
Lakshmi Engg.’s balance sheet shows a strengthening in shareholder’s funds, which grew from ₹16.07 crores in 2021 to ₹21.75 crores in 2025. Total reserves increased steadily, supporting the company’s net worth. The book value per share rose from ₹240.30 in 2021 to ₹325.23 in 2025, indicating value accretion for shareholders over time.
Total liabilities expanded from ₹26.88 crores in 2021 to ₹38.38 crores in 2025, driven largely by a rise in long-term borrowings from ₹3.38 crores to ₹4.96 crores and short-term borrowings increasing to ₹4.03 crores in 2025. This leverage increase may reflect funding for capital work in progress, which surged to ₹5.19 crores in 2025 from negligible levels in earlier years.
Non-current investments also grew, reaching ₹15.60 crores in 2025, suggesting strategic asset allocation. Current assets improved significantly, particularly cash and bank balances, which rose to ₹8.82 crores in 2025 from ₹1.55 crores in 2022, enhancing liquidity.
Cash Flow Overview
Cash flow from operating activities showed improvement in recent years, with ₹5 crores generated in 2025 compared to negative cash flows in 2021. Investing activities reflected consistent outflows, notably ₹7 crores in 2025, aligned with capital expenditure and investments. Financing activities fluctuated, with a positive inflow of ₹2 crores in 2025 after prior years of outflows, indicating active capital management.
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Summary and Outlook
In summary, Lakshmi Engg. has experienced a mixed performance trajectory over the past several years. While revenue and profit margins have contracted from their peaks, the company has maintained profitability and strengthened its balance sheet with growing reserves and shareholder equity. The increase in borrowings and capital work in progress suggests ongoing investment in growth initiatives, though margin pressures and rising costs remain challenges.
Investors should weigh the company’s solid asset base and liquidity improvements against the recent decline in profitability margins. The historical data indicates resilience but also highlights the need for operational efficiencies to sustain long-term growth in a competitive industrial manufacturing environment.
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