lambodhara textiles ltd share price Management discussions

a) INDUSTRY STRUCTURE AND DEVELOPMENTS:

Textile industries play a very important role in the development of the Indian economy with respect to GDP, export promotion, employment, etc. It is one of the oldest manufacturing industry in India. It is the second largest industry after agriculture which provides skilled and unskilled employment.

The fundamental strength of the textile industry in India is its strong production base of wide range of fibres / yarns from natural / man-made fibres.

b) OPPORTUNITIES & THREATS:

Your Company is mainly focusing on customized fancy yarn in niche segment and has extended its entry into specialty fibre fancy yarn. Your Company is exporting to most of the countries around the world and exploring new market with new product variants.

The economy world over is sluggish may have an impact in the performance of textile industry in general.

c) SEGMENT-WISE PERFORMANCE Textile Division

The main business of your Company is Textiles. This Division earned a revenue of Rs.20670.74 Lakhs as against Rs.18489.93 Lakhs in 2021-22. This division earned a PBT of Rs.2,095.80 Lakhs as against Rs. 1811.32 Lakhs in 2021-22.

Power Generation

a. Wind Mill

The Company has three Wind Mills of 4.75 MW capacity.

b. Solar

i. The Company has Grid Tied Roof Top Solar Power Plant of 1.0 MW capacity.

ii. During the financial year your Company was in the process of installation of 3.3 MW of On-Ground Solar PV Power Project. On commissioning of the said Power Project, the Company would meet 90% requirement of normal electrical consumption.

Real Estate:

i. The Company has also a Commercial Complex exclusively for rentals at prime locale with a super built-up area of 28,000 sq. ft. with Ground and four floors.

ii. The Company has also purchased 1.72 acre land at Idigarai, Coimbatore at a cost of Rs.1.02 Crores and 1.25 acre land at Siruvani, Coimbatore at a cost of Rs.0.17 Crores for real estate development.

d) OUTLOOK:

The Company, on account of manufacturing customized fancy yarn and specialty fibre fancy yarn in niche segment, continues to have good demand and created specific markets for its products. This ensures more sustained profitable operations. The Company continues to strengthen its production base by modernization and improvising production process. The Company has installed windmills and roof-top solar power and is in the process of installation of 3.3 MW of On-Ground Solar PV Power Project. On commissioning of the said Power Project, the Company would meet 95% of its captive power requirement.

e) RISKS AND CONCERNS:

The Company has a risk management process designed to safeguard the organization from various risks through adequate and timely actions.

Your Company is exposed to all the risks associated with this business in terms of market conditions, timing, inflation, long term economic conditions, etc.,.

f) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The company has an Internal Control System commensurate with the size and the nature of its business. Management has overall responsibility for the Companys internal control system to safeguard the assets and to ensure reliability of financial records. The Company has a detailed budgetary control system and the actual performance is reviewed periodically and decision taken accordingly.

g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Your Company has achieved a Profit Before Tax of Rs.2365.28 Lakhs from operations on a turnover of Rs.21140.09 Lakhs for the year ended 31st March 2023.

h) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT:

During the year under review, industrial relations at our plant locations remained harmonious. Your Company emphasizes on the safety of people working in its premises. Structured safety meetings were held and safety programs were organized for them throughout the year.

i) KEY FINANCIAL RATIOS :

S.No. Description	31.03.2023	31.03.2022	% change
1. Debtors Turnover	19.82	21.05	(5.84)
2. Inventory Turnover	18.32	15.32	19.58
3. Interest Coverage Ratio *	7.53	28.57	(73.65)
4. Current ratio	3.07	3.26	(5.83)
5. Debt Equity ratio	0.57	0.49	16.32
6. Operating Profit Margin %	19.51	18.16	7.44
7. Net Profit Margin (%) or sector specific equivalent ratio	7.99	8.41	(4.99)
8. Return on Networth	16.04	17.75	(9.63)

Remarks for variation more than 25%

* Finance cost increased due to Foreign Currency Exchange Fluctuation.

	For and on behalf of the Board
	Lambodhara Textiles Limited
Place : Coimbatore	Meenakshi Sundaram Rajkumar
Date : 11.08.2023	Chairman
	(DIN:06935422)