Laxmi Cotspin Limited
Introduction
Laxmi Cotspin Limited is a manufacturing business that deals with the production of cotton yarn, cotton bales, oil cake and oil seeds. The company focuses mainly in spinning the textile industry.
Industry Overview
The company is involved in the Indian textile industry that is among the largest industries in India. The industry is in the stage of technological change particularly in the spinning and manufacturing process.
Purpose of the Analysis
This analysis aims to measure:
Company performance
Financial health
Growth potential
Risks and opportunities
Company Overview
Background and History
Incorporated in India and listed in NSE.
Jalna, Maharashtra, Registered office.
20 years of operations completed (AGM 2025)
Business Model
The business model of the company is a manufacturing + sales type:
Procures raw cotton
Technologies to yarn and other products.
Domestic and export market sales.
It also intends to diversify into healthcare textiles.
Key Products / Services
Cotton Yarn
Cotton Bales
Oil Cake
Oil Seeds
(Future) Surgical products and medical textiles.
Market Position
Competitive textile market.
Has good marketing network (local + export)
Placed as a middle-size manufacturer of textile.
Promoter / Founder Introduction.
Mr. Sanjay Kachrulal Rathi- Chairman and managing director.
Professional Background
The person has experience in the field of manufacturing and running a business dealing with textiles.
Takes the lead in strategic planning and growth.
Role in Company Growth
Pushing technological upgrades on spinning.
First mover diversification into healthcare sector.
Increasing the production range and capacity.
Important Implications and Reasoning.
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 143.29 | 144.02 | 150.42 |
Gross Profit | 2.82 | 9.38 | 11.09 |
EBITDA | -1.33 | 5.94 | 8.14 |
Depreciation | 3.26 | 3.04 | 3.21 |
Interest | 2.03 | 3.21 | 4.58 |
EBT | -6.62 | -0.31 | 0.35 |
Net Profit | -5.85 | -0.25 | 0.46 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital | 17.15 | 17.15 | 17.15 |
Reserves | 30.61 | 45.80 | 45.69 |
Total Equity | 47.76 | 62.95 | 62.84 |
Borrowings | 42.28 | 50.18 | 46.76 |
Other Liabilities | 8.40 | 6.88 | 9.45 |
Total Liabilities | 98.44 | 120.01 | 119.05 |
Fixed Assets | 23.77 | 34.80 | 31.89 |
Current Assets | 53.43 | 57.36 | 49.52 |
Total Assets | 98.44 | 120.01 | 119.05 |
Cash flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
Cash Flow from Operating Activities | 1,843 | 973 | 2,931 |
Cash Flow from Investing Activities | 433 | 915 | -1,507 |
Cash Flow from Financing Activities | -2,254 | -2,244 | -1,034 |
Net Cash Flow | 22 | -356 | 390 |
Ratio Analysis
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales | 143.29 | 144.02 | 150.42 |
Net Profit | -5.85 | -0.25 | 0.46 |
Gross Profit | 2.82 | 9.38 | 11.09 |
Current Assets | 53.43 | 57.36 | 49.52 |
Current Liabilities | 8.40 | 6.88 | 9.45 |
Borrowings | 42.28 | 50.18 | 46.76 |
Equity | 47.76 | 62.95 | 62.84 |
Interest | 2.03 | 3.21 | 4.58 |
Total Assets | 98.44 | 120.01 | 119.05 |
Strengths
Quality presence in textile manufacturing.
Product diversification (yarn and oil products)
Americanization Textile: High-margin medical textile expansion.
Having a domestic & export network.
Experienced leadership
Weaknesses
Reliance on price of cotton/raw material.
Poor size relative to large textile players.
Capital-intensive industry
Commodity cycles may cause a change in profitability.
Risk Factors
Unpredictability in the textile industry.
Costs of technological upgrade.
Large integrated players as competitors.
Healthcare diversification execution risk.
Risks of currency, demand export dependency.
Future Outlook
Positive due to:
Medical textile sector (large demand and high profit margins) growth.
Planned capacity upgrades
Garment manufacturing entry.
In general, company goals include diversification strategy + growth.
Conclusion
Description and Results: This project aims to determine if the budgeting process positively impacts organizational performance, thereby allowing the organization to make timely decisions and enhance its financial outcomes.
Final Assessment of Financial Health:
This project will identify whether the budgeting process has a positive effect on organizational performance or not, thus enabling the organization to make the timely decision and optimize its financial performance.
Seems to be on solid ground, has growth prospects.
Diversification signifies prospective strategy.
Needs observation of debt, margins and ability to execute.
Investment / Performance Perspective:
This perspective represents a policy's effect on the company and indicates its capacity to meet the demands of diverse stakeholders including employees, suppliers, customers, and others.
● Investment / Performance Perspective: This is the impact on the company of a policy and shows its ability to satisfy the needs of various stakeholders such as employees, suppliers, customers, etc.
Growth, moderate-risk company.
Appropriate to investors who took an interest in:
Textile manufacturing sector + manufacturing.