How has been the historical performance of Libas Consumer?

Revenue and Profit Trends

Libas Consumer’s net sales have demonstrated a notable recovery and growth pattern, rising from ₹63.13 crores in March 2019 to ₹91.91 crores in March 2025. The company experienced a dip in sales in the fiscal year ending March 2021, with ₹54.08 crores, likely impacted by broader economic challenges, but rebounded strongly in subsequent years. Total operating income mirrored this trend, reflecting the company’s core business strength without reliance on other operating income, which remained nil throughout the period.

Operating profit margins excluding other income have varied considerably, peaking at 14.92% in March 2022 before contracting to 4.58% in March 2025. This contraction was influenced by rising raw material costs, which increased from ₹47.58 crores in 2019 to ₹74.62 crores in 2025, and a sharp rise in other expenses, which more than tripled from ₹4.07 crores to ₹10.91 crores over the same period. Despite these pressures, the company maintained positive operating profits, with PBDIT (profit before depreciation, interest and tax) excluding other income standing at ₹4.21 crores in March 2025.

Profitability and Earnings

Profit after tax (PAT) has shown volatility, with a loss recorded in March 2021 at ₹-1.17 crores, contrasting with a peak profit of ₹8.74 crores in March 2022. The PAT margin followed a similar pattern, dipping into negative territory at -2.16% in 2021 but recovering to 2.87% by March 2025. Earnings per share (EPS) reflected these swings, falling to a negative ₹-0.8 in 2021 before stabilising at ₹1.0 in 2025. The company’s ability to return to profitability after the downturn demonstrates resilience amid challenging market conditions.

Balance Sheet and Financial Position

Shareholder’s funds have grown steadily, from ₹37.41 crores in 2021 to ₹81.71 crores in 2025, supported by increases in equity capital and reserves. The equity capital rose from ₹12.25 crores in 2021 to ₹26.34 crores in 2025, while reserves more than doubled from ₹25.16 crores to ₹55.36 crores over the same period. This growth in net worth indicates a strengthening financial foundation.

Libas Consumer has managed its debt levels with some fluctuations; total debt decreased from ₹17.91 crores in 2021 to ₹13.81 crores in 2025. The company eliminated long-term borrowings by 2022, focusing on short-term borrowings which stood at ₹13.81 crores in 2025. This shift suggests a strategic approach to managing liabilities and maintaining liquidity.

Asset and Working Capital Management

Total assets have expanded significantly, from ₹65.57 crores in 2021 to ₹111.14 crores in 2025, reflecting business growth and investment in current assets. Current assets increased from ₹53.88 crores to ₹92.52 crores, driven by higher inventories and sundry debtors, which rose to ₹31.13 crores and ₹41.66 crores respectively in 2025. Cash and bank balances also improved markedly, more than doubling from ₹6.31 crores in 2021 to ₹15.30 crores in 2025, enhancing the company’s liquidity position.

Cash Flow Dynamics

Operating cash flow has been inconsistent, with negative cash flow in 2023 but a positive turnaround to ₹9.00 crores in 2025. Financing activities have varied, with a notable inflow of ₹17.00 crores in 2023 followed by an outflow of ₹2.00 crores in 2025, indicating active capital management. The net cash inflow of ₹6.00 crores in 2025 and a closing cash balance of ₹15.00 crores underscore improved cash management and operational efficiency.

Summary of Historical Performance

Over the six-year period, Libas Consumer has demonstrated a capacity for growth and recovery, with net sales increasing by over 45% from 2019 to 2025. Despite a challenging year in 2021 marked by losses and margin compression, the company rebounded with improved profitability and operational margins in subsequent years. The balance sheet has strengthened considerably, with shareholder equity more than doubling and debt levels being prudently managed. Enhanced liquidity and positive cash flows in recent years further support the company’s financial health.

While rising raw material and other expenses have pressured margins, the company’s ability to maintain positive operating profits and return to net profitability is a positive indicator. Investors should note the volatility in earnings and margins but also recognise the underlying growth in revenues and net worth as signs of a resilient business model.

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