Lambodhara Textiles Ltd Management Discussions

Annexure

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 which 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 22,080.84 Lakhs as against 18762.98 Lakhs in 2023-24. This division earned a PBT of 620.97 Lakhs as against 364.48 Lakhs in 2023-24.

Power Generation : Our renewable energy portfolio delivered strong performance with combined wind and solar revenue of 1,252.56 lakhs, as against 1054.47 Lakhs in 202324.

Power Generation

a. Wind Mill

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 1.7 MW capacity.

ii. The Company had 3.3 MW of On-Ground Solar PV Power Project at Kamudi, Ramnad District.

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 floors.

ii. The Company has 1.72 acre land at Idigarai, Coimbatore at a cost of 1.02 Crores and 1.25 acre land at Siruvani, Coimbatore at a cost of 0.17 Crores, 2.15 acre land at Othakalmandapam, Coimbatore at a cost of 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 from an 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 i nstallation of 4.75 MW windmills, a 2.7 MW Grid-Tied Roof-Top Solar Power Plant (comprising 1.0 MW and 1.7 MW units), and a 3.3 MW On-Ground Solar PV Power Project at Kamudi, Ramnad District.

These initiatives will enable the Company to meet 95% of its total power requirement through captive renewable sources.

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 1,164.42 Lakhs from operations on a turnover of 23,166.61 Lakhs for the year ended 31 st March 2025.

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.

Remarks for variation more than 25%

* Increase in Net Profits.