How has been the historical performance of Le Travenues?

Revenue Growth and Operating Performance

Le Travenues’ net sales have shown robust expansion, rising from ₹379.58 crores in March 2022 to ₹914.25 crores by March 2025. This represents a compound annual growth rate exceeding 40%, reflecting strong demand and operational scaling. The company’s total operating income mirrors this trend, as other operating income remained nil throughout the period.

Operating profit before depreciation and interest (PBDIT) excluding other income improved markedly, shifting from a negative margin in 2022 to a positive ₹80.87 crores in 2025. Including other income, operating profit nearly doubled from ₹53.06 crores in 2024 to ₹98.89 crores in 2025. This improvement is underpinned by disciplined cost management, despite rising employee expenses and other operating costs.

Operating profit margins have strengthened from a negative 3.25% in 2022 to a healthy 8.85% in 2025, signalling enhanced operational efficiency. Gross profit margins, while slightly contracting from 12.18% in 2024 to 11.06% in 2025, remain solid given the scale of revenue growth.

Profitability and Earnings Metrics

Profit before tax (PBT) has shown a strong recovery, moving from a loss of ₹17.60 crores in 2022 to a profit of ₹90.82 crores in 2025. Despite fluctuations in tax provisions, the company reported a consolidated net profit of ₹60.18 crores in 2025, a significant turnaround from a loss of ₹24.38 crores in 2022. Earnings per share (EPS) followed a similar pattern, improving from a negative ₹0.66 in 2022 to ₹1.54 in 2025.

However, it is notable that consolidated net profit declined slightly from ₹75.80 crores in 2024 to ₹60.18 crores in 2025, partly due to increased share of losses from associates and minority interest adjustments. The profit after tax margin moderated to 6.59% in 2025 from 11.14% in 2024, indicating some pressure on bottom-line profitability despite top-line growth.

Balance Sheet Strength and Capital Structure

Le Travenues’ balance sheet has strengthened considerably over the years. Shareholder’s funds expanded from ₹342.69 crores in 2022 to ₹633.62 crores in 2025, supported by rising reserves and equity capital. The company has successfully reduced its total debt from ₹232.57 crores in 2020 to ₹32.37 crores in 2025, reflecting prudent financial management and deleveraging efforts.

Assets have grown in tandem with business expansion, with total assets increasing from ₹537.97 crores in 2022 to ₹896.80 crores in 2025. The net block of fixed assets remained stable around ₹280 crores, while current assets more than doubled, driven by higher cash and bank balances and current investments. This liquidity improvement is a positive indicator of financial flexibility.

Cash Flow and Liquidity Trends

Cash flow from operating activities has improved significantly, turning positive at ₹122 crores in 2025 from a negative ₹34 crores in 2022. This reflects better working capital management and operational cash generation. Investing activities have consistently shown cash outflows, indicative of ongoing capital expenditure and investments in growth initiatives.

Financing activities fluctuated, with a notable inflow of ₹104 crores in 2025, supporting liquidity and debt reduction. The company’s closing cash and cash equivalents surged to ₹48 crores in 2025 from ₹22 crores in 2022, underscoring enhanced cash reserves and financial stability.

Outlook and Considerations

Le Travenues’ historical performance reveals a company that has successfully navigated past losses to establish a foundation of growth and profitability. The strong revenue trajectory, improved margins, and healthier balance sheet position the company well for future expansion. Investors should monitor the slight dip in net profit margin and the impact of associate losses, while appreciating the robust cash flow and deleveraging progress.

Overall, the company’s financial evolution over the past three years reflects a positive trend, with key metrics signalling operational resilience and strategic financial management.

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