Lambodhara Textiles Ltd Management Discussions

a) INDUSTRY STRUCTURE AND DEVELOPMENTS:

The textile industry is a vital contributor to Indias economy, playing a significant role in GDP, exports, and employment generation. As the second-largest employer after agriculture, it supports millions of skilled and unskilled workers across the value chain. India has a strong and diversified textile base, producing both natural and man-made fibres. Today, the industry is increasingly adopting automation to improve productivity, enhance product quality and optimize manufacturing processes. With a growing focus on sustainability and efficient production practices, the sector is strengthening its global competitiveness and driving future-ready growth. b) OPPORTUNITIES & THREATS:

Your Company is mainly focused on customized fancy yarns in the niche segment and has further strengthened its presence in specialty fibre fancy yarns. The Company exports its products to customers across various countries around the world and continues to explore new markets with innovative product variants.

The global economic environment remains dynamic with evolving market conditions and trade uncertainties, which may have an impact on the overall performance of the textile industry. However, the Companys emphasis on product innovation, quality, and customer satisfaction is expected to support its growth and competitiveness in the global market. c) SEGMENT-WISE PERFORMANCE

The main business of your Company is Textiles. This Division earned a revenue of Rs. 22,552.35 Lakhs as against Rs. 22,080.84 Lakhs in 2024-25. This division earned a PBT of Rs. 685.47 Lakhs as against Rs.620.97 Lakhs in 2024-25.

Power Generation: Our renewable energy portfolio delivered strong performance with combined wind and solar revenue of Rs. 1,571.94 Lakhs, as against Rs. 1,252.56 Lakhs in 2024-25.

The Company had three Wind Mills of 4.75 MW capacity. b. Solar i. The Company had Grid Tied Roof Top Solar Power Plant of 1.0 MW and 1.4 MW capacity. ii. The Company had 3.3 MW of On-Ground Solar PV Power Project at Kamudi,

Ramnad District. iii. The Company will meet 95% of its Power requirement by Captive Power.

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 ii. The Company has 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, 2.15-acre land at Othakalmandapam, Coimbatore at a cost of Rs.0.59 Crores for real estate development. d) OUTLOOK:

The Company is well-positioned for sustained growth, backed by its strong presence in the niche segment of customized fancy yarn and specialty fiber fancy yarn. With the completion of key modernization initiatives, the Company now benefits enhanced production base and streamlined manufacturing processes, which are expected to drive higher operational efficiency and improve cost competitiveness in the coming years. Looking ahead, the Company remains committed to sustainable operations. It has significantly strengthened its renewable energy portfolio with the installation of 4.75 MW windmills, 2.4 MW Grid-Tied Rooftop Solar Power Plant (comprising 1.0 MW and 1.4 MW units), and a 3.3 MW Ground-Mounted Solar PV Power Project at Kamudi, Ramanathapuram District.

These renewable energy assets enable the Company to meet approximately 95% of its power requirements through captive power generation. 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.

Your Company has achieved a Profit Before Tax of Rs. 1,179.72 Lakhs from operations on a turnover of Rs. 23,795.62 Lakhs for the year ended 31st March 2026. 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 :

@ Loan repaid reducing Debts # Increase in Net Profits. * Forex Loss

Note: This pertains to the Interest Coverage Ratio. Please include the symbol above as well.