Ludlow Jute & Specialities Reports Strong Operational Metrics Amid Cash Flow Challenges

Ludlow Jute & Specialities has recently undergone a financial trend adjustment, reflecting a notable performance in the quarter ending September 2025. The company reported a significant increase in its financial score, indicating strong operational metrics. Key highlights include an operating profit to interest ratio of 3.94 times, the highest recorded, and a return on capital employed (ROCE) of 8.89%. Additionally, the company achieved its highest quarterly figures for profit before depreciation, interest, and tax (PBDIT) at Rs 13.78 crore, profit before tax (PBT) at Rs 8.71 crore, and profit after tax (PAT) at Rs 6.86 crore. Net sales also reached a peak of Rs 135.15 crore, with earnings per share (EPS) at Rs 6.35.
However, challenges persist, particularly in cash flow, with operating cash flow for the year at Rs -5.49 crore. Interest expenses have risen by 24.05% to Rs 10.83 crore, and the company has not declared any dividends, reflected in a dividend payout ratio of 0.00%. Furthermore, the debtors turnover ratio stands at a low 9.84 times.

In terms of market performance, Ludlow Jute has outperformed the Sensex significantly over various time frames, with a remarkable 329.66% return over three years and 659.24% over ten years, showcasing its resilience in the competitive landscape of the Paper, Forest & Jute Products industry.