How has been the historical performance of Lambodhara Text.?

Revenue and Profitability Trends

Net sales for Lambodhara Textiles have shown a notable increase from ₹174.81 crores in March 2019 to ₹231.67 crores in March 2025. Despite some volatility, including a dip in fiscal 2021 to ₹118.27 crores, the company has rebounded strongly in subsequent years. Operating profit margins, excluding other income, peaked at 19.6% in 2021 but moderated to 10.0% by 2025, reflecting changing cost structures and market conditions.

Profit after tax (PAT) has mirrored this pattern, rising from ₹7.57 crores in 2019 to a high of ₹17.30 crores in 2023 before settling at ₹6.82 crores in 2025. Correspondingly, the PAT margin declined from a peak of 8.95% in 2021 to 2.94% in 2025, indicating pressure on net profitability despite revenue growth. Earnings per share (EPS) followed a similar trend, with a peak of 16.67 in 2023 before easing to 6.57 in 2025.

Cost and Expense Analysis

The company’s raw material costs have increased in line with sales, rising from ₹94.13 crores in 2019 to ₹121.83 crores in 2025. Purchase of finished goods and manufacturing expenses have also escalated, reflecting expanded operations. Employee costs have grown steadily, reaching ₹14.79 crores in 2025 from ₹10.72 crores in 2019. Notably, power costs have remained negligible throughout the period, suggesting operational efficiencies or alternative energy arrangements.

Balance Sheet and Financial Position

Shareholders’ funds have grown consistently, from ₹62.33 crores in 2020 to ₹117.34 crores in 2025, supported by rising reserves which reached ₹112.15 crores in 2025. The company’s total liabilities have also increased, reflecting expansion and investment activities, with total debt standing at ₹48.01 crores in 2025, down from a peak of ₹56.84 crores in 2024.

Asset base expansion is evident, with gross block assets rising from ₹90.45 crores in 2020 to ₹172.73 crores in 2025. Net block values have similarly increased, indicating ongoing capital expenditure and asset accumulation. Current assets have remained stable around ₹70 crores, with a healthy mix of inventories, sundry debtors, and cash balances, the latter improving to ₹10.79 crores in 2025.

Cash Flow and Operational Efficiency

Cash flow from operating activities has fluctuated but generally improved, reaching ₹26 crores in 2025 compared to ₹16 crores in 2024. Investing activities have consistently shown cash outflows, reflecting capital investments, while financing activities have mostly been cash outflows, indicating debt repayments or dividend payments. The net cash inflow of ₹7 crores in 2025 marks a positive liquidity position after some years of tighter cash management.

Summary and Outlook

Overall, Lambodhara Textiles has experienced a period of growth and consolidation over the past six years. While revenue and asset base have expanded significantly, profitability margins have seen some compression in recent years. The company’s balance sheet remains robust with increasing shareholder equity and manageable debt levels. Cash flow trends suggest improving operational efficiency, though capital expenditure continues to absorb significant resources.

Investors analysing Lambodhara Textiles should weigh its steady growth in sales and assets against the recent moderation in profit margins. The company’s ability to sustain earnings growth and manage costs will be critical in determining its future performance trajectory.

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