Revenue and Profitability Trends
Over the past seven years, LWS Knitwear’s net sales have shown a generally upward trend, with a marked increase from ₹29.01 crores in March 2020 to ₹108.69 crores in March 2025. This growth reflects the company’s expanding market presence and operational scale. Notably, the jump from ₹75.13 crores in March 2024 to ₹108.69 crores in March 2025 represents a robust year-on-year increase of approximately 44.7%.
Operating profit (PBDIT) excluding other income has also improved steadily, rising from ₹0.40 crores in March 2020 to ₹4.95 crores in March 2025. This improvement is mirrored in the operating profit margin, which increased from 1.38% in March 2020 to 4.55% in March 2025, indicating enhanced operational efficiency and cost management. Profit after tax (PAT) followed a similar trajectory, growing from ₹0.17 crores in March 2020 to ₹2.53 crores in March 2025, with the PAT margin improving from 0.59% to 2.33% over the same period.
Earnings per share (EPS) have reflected this positive trend, rising from ₹0.34 in March 2020 to ₹1.73 in March 2025, signalling increased shareholder value. The company’s gross profit margin, while modest, has also seen a gradual increase, reaching 3.19% in the latest fiscal year.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Balance Sheet and Financial Position
LWS Knitwear’s balance sheet has strengthened considerably, with shareholder’s funds rising from ₹10.00 crores in March 2020 to ₹30.36 crores in March 2025. This growth is supported by an increase in reserves, which have more than tripled from ₹4.94 crores to ₹15.73 crores over the same period. The company’s equity capital also increased significantly in March 2025, reflecting possible equity infusion or share issuance.
On the liabilities side, total debt has fluctuated, peaking at ₹18.92 crores in March 2024 before declining to ₹12.62 crores in March 2025. Long-term borrowings have increased from ₹0.48 crores in March 2020 to ₹9.29 crores in March 2025, while short-term borrowings have also risen, indicating a higher reliance on debt financing to support growth. Despite this, the company’s net current assets have improved markedly, reaching ₹35.96 crores in March 2025, up from ₹2.94 crores in March 2020, suggesting better liquidity and working capital management.
Asset-wise, total assets have grown from ₹22.88 crores in March 2020 to ₹52.11 crores in March 2025, driven largely by increases in current assets such as inventories and sundry debtors. The net block of fixed assets has decreased slightly, indicating limited capital expenditure or asset disposals.
Cash Flow and Operational Efficiency
Cash flow data indicates some volatility, with operating cash flows turning negative in recent years, notably in March 2023 and March 2024, reflecting increased working capital requirements. However, financing activities have provided significant inflows, particularly in March 2023, which helped maintain liquidity. Investing activities have been relatively modest, with occasional outflows consistent with asset purchases or investments.
The company’s ability to generate positive net cash inflows has been limited, but the overall financial position remains stable due to equity and debt financing. The increase in inventories and sundry debtors suggests a growing scale of operations, though it also points to the need for efficient working capital management going forward.
Considering LWS Knitwear? Wait! SwitchER has found potentially better options in Trading & Distributors and beyond. Compare this Microcap with top-rated alternatives now!
- - Better options discovered
- - Trading & Distributors + beyond scope
- - Top-rated alternatives ready
Summary and Outlook
In summary, LWS Knitwear has exhibited a commendable growth pattern in revenue and profitability over the last several years, supported by a strengthening balance sheet and improved operational margins. The company’s net sales have nearly quadrupled since March 2020, while profit after tax has increased more than tenfold, reflecting effective cost control and scaling of operations.
Despite some challenges in cash flow management, the firm’s liquidity position remains sound, bolstered by increased shareholder funds and manageable debt levels. The rising earnings per share and book value per share further underscore the company’s enhanced value proposition for investors.
Looking ahead, sustaining this growth trajectory will depend on continued operational efficiency, prudent working capital management, and strategic financing decisions. Investors should weigh these factors carefully when considering LWS Knitwear’s potential in the competitive knitwear sector.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
