Dhanlaxmi Fabrics Ltd ( FY2024-25)
Executive Summary
Dhanlaxmi Fabrics Limited is a textile manufacturer and trader based in India which is involved in the business of fabrics, yarn, weaving as well as other related textile products. The Bombay Stock Exchange and Calcutta Stock Exchange have listed the company. In FY2024–25, the consolidated revenue of the company was ₹1494.05 lakhs. The company improved its financial position by decreasing its loss and reporting a small profit after tax compared to last year. Management hopes to achieve growth and profitability in the future via operational and quest improvement. In addition to its current operations, the company plans to engage in real estate and infrastructure activities in the near future.
Company Overview
Dhanlaxmi Fabrics Limited, a public limited company since 1992, makes, weaves, processes, and trades textiles and yarn. They're on both the Bombay and Calcutta stock exchanges, adding to their market presence. The registered office is at Dombivli, Maharashtra, India. The organization is operated by experienced directors; the Managing Director is Mr. Vinod S. Jhawar. Over the years, the Company has focused on operational efficiencies, improved financial performance and exploring new business opportunities. This plan will facilitate future business expansion of the company along with long-term profit generation prospects. Moreover, the company also targets to enter the real estate and development sector.job creation.
Industry Overview
India's textile industry is massive and really important for jobs, exports, and the economy. Dhanlaxmi Fabrics Ltd. is part of this, making and selling fabrics. The sector is growing thanks to increasing domestic demand, shifting fashion tastes, spreading urban areas, and government support. High raw material costs and competition challenge it though. So, there are productivity boosts but hurdles to negotiate."
Financial Performance Analysis
Particulars | F.Y. 2024-2025 | F.Y. 2023-2024 | |||
Standalone | Consolidated | Standalone | Consolidated | ||
Revenue from Operation | 928.39 | 1311.20 | 1659.34 | 1992.78 | |
Revenue from other Income | 162.00 | 182.85 | 120.83 | 147.67 | |
Total Revenue | 1090.39 | 1494.05 | 1780.17 | 2140.45 | |
Profit before Dep. & Int. | (280.32) | (265.21) | (504.14) | (555.09) | |
Depreciation | 62.61 | 62.98 | 81.30 | 85.30 | |
Interest | 30.90 | 41.69 | 19.32 | 20.34 | |
Profit after Depreciation & Interest and before Tax | (373.83) | (369.88) | (604.76) | (660.73) | |
Exceptional Items | 446.77 | 446.77 | (60.91) | (78.44) | |
Profit after Exceptional Items | 72.94 | 76.89 | (665.67) | (739.17) | |
Provision for Taxation | - | 0.64 | 8.22 | 9.80 | |
Provision for Tax (deferred) | 72.41 | 75.52 | 24.27 | 23.35 | |
Provision for Taxation for earlier year | (8.22) | (8.22) | - | (0.33) | |
Profit/Loss after Tax | 8.75 | 8.95 | (698.16) | (771.99) | |
Source: Annual Report 2024–25 of Dhanlaxmi Fabrics Limited.
Key Financial Ratio
Particulars | F.Y.2024-2025 (Standalone) | F.Y.2023-2024 ( Standalone) |
Current Ratio | 8.42 | 4.17 |
Debt-Equity Ratio | - | 0.03 |
Debt Service Coverage Ratio | -8.99 | -25.50 |
Return on Equity Ratio | 0.00 | -0.14 |
Inventory Turnover Ratio | 3.05 | 2.16 |
Trade Receivable Turnover Ratio | 3.31 | 2.45 |
Trade Payable Turnover Ratio | 2.27 | 2.60 |
Net Capital Turnover Ratio | 0.79 | 1.50 |
Net Profit Ratio | 0.01 | -0.42 |
Return on Capital Employed | 0.02 | -0.13 |
Return on Investment | - | - |
Source: Annual Report 2024–25 of Dhanlaxmi Fabrics Limited.
SWOT Analysis
Strengths 1. Presence in the textile industry for years since 1992 2. Operations in manufacturing, weaving, and textile trading 3. Intentions to diversify in real estate business | Weaknesses 1. Revenue decline in the fiscal year 2024-25 2. Low profit margins and history of loss-making 3. Small size compared to big textile companies |
Opportunities 1. Growth in the demand for textiles in India 2. Diversification into real estate and infrastructure business 3. Increased exports and retail options 4. Government assistance in manufacturing and textiles | Threats 1. Higher prices of raw materials and energy 2. High levels of competition in the textile industry 3. Slowing economy impacting demand 4. Global changes in trade and fashion |
Conclusion
Dhanlaxmi Fabrics Limited made improvements in terms of its financial performance in FY2024–25 as it managed to cut down on losses and make some profits. The firm still concentrates on textile manufacturing and trading. Additionally, the firm intends to venture into real estate in the near future.