Revenue and Profitability Trends
In the fiscal year ending March 2025, Laxmi Goldorna reported net sales of ₹87.82 crores, a sharp decrease from ₹201.93 crores recorded in the previous year. Despite this substantial drop in top-line revenue, the company managed to enhance its operating profit margin markedly, rising to 25.58% from 8.57% in the prior year. This improvement was driven by a reduction in total expenditure excluding depreciation, which fell to ₹65.36 crores from ₹184.63 crores, reflecting better cost control and operational efficiencies.
Operating profit (PBDIT) excluding other income increased to ₹22.46 crores compared to ₹17.30 crores, while the overall operating profit including other income rose to ₹22.65 crores from ₹17.44 crores. The gross profit margin also improved significantly to 16.07% from 6.52%, indicating a healthier core business profitability despite lower sales.
Profit before tax edged up to ₹13.91 crores from ₹13.00 crores, and profit after tax increased to ₹10.56 crores from ₹9.48 crores. Correspondingly, earnings per share (EPS) rose to ₹5.06 from ₹4.54, signalling enhanced shareholder returns. The profit after tax margin more than doubled to 12.02% from 4.69%, underscoring the company's ability to maintain profitability amid challenging revenue conditions.
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Balance Sheet and Financial Position
The company’s balance sheet reflects a notable increase in shareholder’s funds, which rose to ₹65.02 crores from ₹45.44 crores, supported by a substantial growth in reserves from ₹24.57 crores to ₹44.15 crores. This increase in reserves indicates retained earnings accumulation and a stronger equity base.
Total liabilities expanded to ₹180.67 crores from ₹107.78 crores, primarily due to a rise in total debt from ₹52.78 crores to ₹102.07 crores. Long-term borrowings increased significantly to ₹70.32 crores from ₹42.36 crores, while short-term borrowings also rose to ₹31.75 crores from ₹10.42 crores. This higher leverage may reflect the company’s efforts to finance working capital or expansion initiatives.
On the asset side, total assets grew to ₹180.67 crores from ₹107.78 crores, with current assets increasing to ₹160.03 crores from ₹99.94 crores. Inventories more than doubled to ₹113.32 crores from ₹52.19 crores, and short-term loans and advances surged to ₹15.43 crores from ₹2.68 crores, indicating a build-up in working capital components. Non-current investments also rose sharply to ₹20.00 crores from ₹7.02 crores, suggesting strategic asset allocation.
Cash Flow and Operational Efficiency
Cash flow from operating activities turned negative at ₹-44.00 crores compared to ₹-8.00 crores in the previous year, largely due to adverse changes in working capital amounting to ₹-63.00 crores. This indicates increased cash tied up in inventory and receivables, which could pressure liquidity. Investing activities generated a modest positive cash flow of ₹3.00 crores, reversing the prior year’s outflow of ₹8.00 crores. Financing activities provided ₹40.00 crores, up from ₹16.00 crores, reflecting increased borrowings to support operations.
Despite the negative operating cash flow, the net cash position remained stable with no significant inflow or outflow, and cash and bank balances stayed minimal at ₹0.27 crores.
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Summary of Historical Performance
Overall, Laxmi Goldorna’s historical performance over the last two fiscal years presents a complex picture. The company faced a significant contraction in sales but managed to improve profitability margins and strengthen its equity base through increased reserves. The rise in borrowings and working capital investment, however, has led to negative operating cash flows, which may warrant close monitoring going forward.
Investors should weigh the improved earnings efficiency and margin expansion against the challenges of declining revenue and higher leverage. The company’s ability to convert its operational improvements into sustained cash generation will be critical for its future financial health and growth prospects.
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