To analyse financial performance of Dhanlaxmi Fabric Ltd.
INTRODUCTION
- Brief Introduction of the company
Dhanlaxmi Fabric Ltd. is an Indian company in the textile industry. The company mainly engaged in manufacturing and trading of fabric, yarn, and textile products in the market. This company is listed on the stock exchange. It operates in the textile market which is one of the most important sectors in the country.
- Industry Overview
The Indian textile and apparel industry is significant at global as well as at country level. The industry produces economic growth and employment in the country. This industry has a very great future because of increasing demand in textile and fashionable products. However, this industry faces many challenges like raw material price fluctuation, global competition, and change in demand.
- Purpose of the Analysis
This research and analysis will help to understand the financial condition of Dhanlaxmi Fabric Ltd. Also this analysis will help get more information about the company and about the Textile sector.. The analysis will cover all companies’ profit and loss statements, balance sheets and key financial ratios.
COMPANY OVERVIEW
- Background and History
Dhanlaxmi Fabric Ltd. is a textile company in India established in 1992 and located in Maharashtra. It operates in manufacturing and processing textile. The company produces high quality products like Dyed, Printed, and cotton and Lycra material.
- Business model
The company follow Trading-business model –
1) Manufacturing of textile products.
2) Processing of raw fabric and converting it into a finished product.
3) Trading of textile products in the domestic market.
- Key Product and Services
1) Cotton Fabric
2) Synthetic Fabric
3) Yarn Product
4) Textile Processing Services
- Market Positioning
The company is currently positioning itself in the domestic textile trading market. Aiming to gain emerging trends and demand for fashion and textile products. Mainly focus on cost-effective product and supply chain management.
PROMOTERS / FOUNDER
Name | Designation | Professional background | Role in company |
Mr. Vinod Jhawar | Managing Director | Experience in textile industry | Responsible for strategic decisions and management |
Mr. Mahesh Jhawar | Director | Business experience in textile sector | Supports operational activities |
Mr. Mukul Jhawar | Whole Time Director | Management and financial experience | Handles financial and administrative functions |
FINANCIAL ANALYSIS
- Income statement
Particular | FY2025 | FY2024 |
Income from operation | 13.11 | 19.93 |
Total Expenses | 18.64 | 28.01 |
Profit Before Tax | 0.77 | -7.39 |
Net Profit / Loss | 0.09 | -7.72 |
(in Crores)
Key Observations of Income Statement:
1) Companies revenue from operation in FY25 is less as compared to FY24
2) The company generated 0.09 Cr. net profit in FY25.
- Balance sheet analysis
Particular | FY2025 | FY2024 |
Equity share capital | 8.58 | 8.58 |
Total Current Assets | 4.30 | 4.10 |
Total Current Liability | 0.16 | 1.57 |
Total ( End of FY) | 37.85 | 37.76 |
(in Crores)
End of the FY25 –
1) Equity share capital: There is no change in equity share capital.
2) Total Current Assets: FY25 current assets are slightly increased as compared to FY24. i.e. 4.30 Cr.
3) Total Current liability: Current Liability is decreased in FY25 i.e. 0.16 Cr.
- Cash Flow Statement
(in Crores)
Cash / FY | FY2025 | FY2024 |
Operating | 0.19 | 1.99 |
Investing | 1.83 | 6.31 |
Financing | -1.31 | -8.25 |
Cash and Cash Equivalent (In the end ) | 0.71 | 0.04 |
Note –
1) Cash from operating and investing activity is positive.
2) Cash from financing activity is negative for both the Financial Year.
Key financial Ratio
- Profitability Ratio
Return on Equity = NA
- Liquidity Ratio
Current Ratio – current assets / current liability = 26.8
- Leverage Ratio
Debt to Equity Ratio – Total Debt / Shareholder equity = NA (No debt)
- Efficiency Ratio
Net Profit Ratio – NPAT / Net Sale = 0.94
- Year on year comparison ( 3 years revenue)
5. KEY INSIGHTS AND INTERPRETATION
- Strengths
1) The company is in a very good liquidity position.
2) They didn’t have any debt till this Financial Year.
3) Increased profit as compared to last year.
- Weakness
1) The company has a low profit margin.
2) More dependent on Non-operational income.
- Risk factor
1) Intense competition in the market through other textile companies.
2) Continues change in market demand and trend.
- Future Outlook
The company has a good opportunity in the future, they just have to improve their operational efficiency, managing production costs. If companies expand their market presence they will achieve good financial results.
6. CONCLUSION
Final evaluation of financial condition
The Dhanlaxmi Fabric is currently having good and stable financial condition. They have very little debt and good liquidity which shows financial stability. But they need to focus more on their operational efficiency so they can improve profitability and revenue growth.
Investment / Performance Perceptive
In this financial year report, the company is currently doing well but there is moderate level risk for investors to invest in the company. Companies need to improve their operation so they will do well in the future which will make the company more profitable and investment friendly.
Sources
https://www.screener.in/company/521151/consolidated/
https://in.linkedin.com/in/mukul-jhawar-7a23b1144