Libas Consumer Products Limited
Introduction
Libas Consumer Products Limited is an Indian based company that was founded in 1995 and is involved in ethnic fashion goods and FMCG goods (rock salt).
Industry Overview
Business in textile and apparel (ethnic wear) and in FMCG (salt segment).
The ethnic wear demand is closely connected with:
Weddings & festivals
Fashion trends
FMCG segment (rock salt) is an expanding market that is being fuelled by the food consumption trends.
Purpose of Analysis
Business model- diversification.
Financial performance
Weaknesses, opportunities, and future prospectus.
Company Overview
Background and History
Founded in 1995
Headquartered in Mumbai
More than 25+ years experience in the clothing industry.
Business Model
The company is involved in various segments:
Ethnic Fashion
Ready to wear & tailor-made apparel.
Innerwear (KNG brand)
Bamboo products made of organic bamboo.
FMCG (Gangji Rock Salt)
Production and distribution into large corporations.
Revenue is generated on:
Fashion retail and wholesale sales.
FMCG distribution
Export & domestic markets
Key Products/Services
Ethnic clothing (marriage and celebration clothes)
Innerwear (bamboo-based)
Gangji brand of rock salt products.
Market Position
Good presence in the niche of ethnic wear.
Celebrity-endorsed brand
Multi-sector business model (Fashion + FMCG) expansion.
Introduction Promoter / Founder Introduction
Marked out by the Gangji family / Libas brand leadership.
Related with designer-led brand (Riyaz Gangji brand identity)
Professional Background
Deep expertise in:
Fashion & apparel design
Manufacturing and retail
More than twenty years of experience in the industry.
Role in Company Growth
Diversified company into:
Innerwear segment
FMCG (rock salt)
Strategic focus on:
Brand building
Diversification into other sectors.
Capacity growth
Financial Statement
Profit and Loss
Particulars | Mar-23 | Mar-24 | Mar-25 |
Sales (Cr) | ₹81.35 | ₹74.29 | ₹91.91 |
Gross Profit (Cr) | ₹16.13 | ₹10.05 | ₹14.33 |
EBITDA (Cr) | ₹9.37 | ₹6.49 | ₹4.50 |
Depreciation (Cr) | ₹0.29 | ₹0.20 | ₹0.14 |
Earnings Before Tax (Cr) | ₹7.81 | ₹5.25 | ₹2.94 |
Net Profit (Cr) | ₹7.64 | ₹5.21 | ₹2.65 |
Interest (Cr) | ₹1.27 | ₹1.04 | ₹1.42 |
Balance Sheet
Particulars | Mar-23 | Mar-24 | Mar-25 |
Equity Share Capital (Cr) | ₹26.34 | ₹26.34 | ₹26.34 |
Reserves (Cr) | ₹46.55 | ₹52.11 | ₹55.36 |
Total Equity (Cr) | ₹72.89 | ₹78.45 | ₹81.70 |
Borrowings (Cr) | ₹9.88 | ₹14.74 | ₹13.81 |
Other Liabilities (Cr) | ₹11.37 | ₹5.65 | ₹15.73 |
Total Liabilities (Cr) | ₹94.14 | ₹98.84 | ₹111.24 |
Fixed Assets (Cr) | ₹1.34 | ₹1.15 | ₹1.05 |
Current Assets (Cr) | ₹71.41 | ₹75.42 | ₹88.09 |
Total Assets (Cr) | ₹94.14 | ₹98.84 | ₹111.24 |
Cash flow Statement
Particulars | Mar-23 | Mar-24 | Mar-25 |
Cash Flow from Operating Activities (Cr) | ₹1,843 | ₹973 | ₹2,931 |
Cash Flow from Investing Activities (Cr) | ₹433 | ₹915 | -₹1,507 |
Cash Flow from Financing Activities (Cr) | -₹2,254 | -₹2,244 | -₹1,034 |
Net Cash Flow (Cr) | ₹22 | -₹356 | ₹390 |
Ratio Analysis
Ratio | Mar-23 | Mar-24 | Mar-25 |
Net Profit Margin (%) | 9.39% | 7.01% | 2.88% |
Gross Profit Margin (%) | 19.83% | 13.53% | 15.59% |
Current Ratio | 3.36 | 3.70 | 2.98 |
Debt to Equity Ratio | 0.14 | 0.19 | 0.17 |
Asset Turnover Ratio | 0.86 | 0.75 | 0.83 |
Strengths
Strong revenue growth:
Q2 FY23 revenue up 42.8% YoY
Fashion + FMCG diversified business model.
Traditional brand in ethnic clothing.
Manufacturing capacity:
35,000–40,000 pieces (fashion)
Penetration of high growth (innerwear and FMCG) segments.
Weaknesses
Declining EBITDA margins:
From 19% → 16.3% (Q2 YoY)
Unfavourable operating cash flow. (- 47.9 Mn).
High inventory days (180 days)
Use of more money on branding.
Risk Factors
Fashion industry is:
Trend-dependent
Seasonal
There is the risk of expansion at the FMCG level (new segment).
Operational disruptions:
Case study: Bhiwandi flood affect.
Margin pressure due to:
Advertising
Expansion costs
Future Outlook
Positive growth outlook:
Doubling of revenue (management projection)
Growth drivers:
Wedding demand recovery
FMCG expansion
Potential in the innerwear segment.
Expected EBITDA margin:
Around 12–13%
Conclusion
Financial Health Evaluation Final.
Positives:
Strong revenue growth
Diversification strategy
Product portfolio expansion.
Concerns:
Falling margins
Negative operating cash flow
New segment execution risk.
Investment / Performance Perspective.
Short-term:
Expansion on the surface and profit margins strained.
Long-term:
Promising if:
FMCG and inner wear industries perform well.
Cash flow improves
In general, Libas is a diversification strategy growth-driven company, yet investors need to pay attention to the company profitability and its cash flows sustainability.