Lahoti Overseas - Lahoti Overseas

📊 BSE: 531842 🏢 Trading & Distributors 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The Textile Division grew 3.86% to INR 501.71 Cr in FY2025 compared to INR 483.04 Cr in the previous year. The Power Projects Division revenue decreased by 29.31% to INR 2.75 Cr from INR 3.89 Cr. The Shares and Securities Division saw a significant increase of 113.78% to INR 1.31 Cr from INR 0.61 Cr.

Geographic Revenue Split

The company is primarily export-oriented, with a strong presence in international markets including Germany, Portugal, Bangladesh, Vietnam, South Korea, Peru, Colombia, Egypt, and Turkey. Specific percentage split by region is not disclosed.

Profitability Margins

Operating Profit Margin (OPBDIT/OI) declined to 2.8% in FY2024 from 6.1% in FY2023 due to intense competition. Net Profit Margin (PAT/OI) also decreased to 2.4% in FY2024 from 4.9% in FY2023. Q1 FY2025 showed a slight recovery with a PAT margin of 3.8%.

EBITDA Margin

EBITDA margin stood at 2.8% in FY2024, a sharp decline from 6.1% in FY2023. This was driven by high domestic cotton yarn prices relative to international prices, which squeezed margins. Q1 FY2025 EBITDA margin was 3.1%.

Capital Expenditure

The company does not have any major debt-funded capital expenditure plans for the near term. Incremental capex, if any, is expected to be funded in a manner that maintains debt protection metrics.

Credit Rating & Borrowing

As of January 2025, ICRA upgraded the ratings to [ICRA]BBB (Stable) and [ICRA]A3+ from the 'Issuer Not Cooperating' category. Interest coverage was 7.8 times in FY2024 and 7.9 times in Q1 FY2025.

⚙️ Operational Drivers

Raw Materials

Cotton yarn and greige fabrics are the primary raw materials, accounting for the majority of the cost of goods sold.

Import Sources

Raw materials are primarily sourced from domestic suppliers within India.

Capacity Expansion

Current capacity includes 4 windmills (Rajasthan, Madhya Pradesh, Maharashtra) and a 2.5 MW solar power unit in Rajasthan. No specific planned expansion units are mentioned.

Raw Material Costs

Raw material costs are highly sensitive to the volatility of domestic cotton yarn prices compared to international prices. Procurement is 90% order-backed to mitigate price fluctuation risks.

Manufacturing Efficiency

Not disclosed.

Logistics & Distribution

Not disclosed.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth is targeted through product and market development, focusing on value-added yarns and organic cotton products. The company is also prioritizing technology upgradation and operational efficiency to improve margins in the competitive export market.

Products & Services

Cotton yarn, greige fabrics, textured yarn, and 100% organic cotton products.

Brand Portfolio

Lahoti Overseas.

New Products/Services

100% organic cotton products certified by GOTS (Global Organic Textile Standard).

Market Expansion

Targeting deeper penetration in existing export markets like Germany, Portugal, and South Korea through enhanced customer service and product diversification.

Market Share & Ranking

Not disclosed; however, the company is noted as a strong player in the merchant export of cotton yarn and grey fabrics.

Strategic Alliances

Not disclosed.

🌍 External Factors

Industry Trends

India is the 6th largest textile exporter. The industry is seeing a shift toward organic textiles and technology-driven operational efficiency to counter global competition.

Competitive Landscape

Intense competition from both domestic and international merchant exporters in the cotton yarn and fabric segments.

Competitive Moat

The company's moat is built on 30+ years of promoter experience and established relationships in the export market. Certifications like GOTS and Oeko-Tex provide a sustainable advantage in the niche organic cotton segment.

Macro Economic Sensitivity

Sensitive to global discretionary consumer spending and domestic agricultural policies affecting cotton prices.

Consumer Behavior

Demand is driven by discretionary spending in key export markets; any slowdown in these economies directly impacts order volumes.

Geopolitical Risks

Exposed to international trade barriers and changes in export incentive structures which affect global competitiveness.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to textile export regulations, export incentive structures (like RoDTEP/RoSCTL), and renewable energy policies including REC floor prices.

Environmental Compliance

The company maintains ISO 9001:2008, GOTS, and Oeko-Tex Standard certifications for its textile products.

Taxation Policy Impact

Not disclosed.

Legal Contingencies

The matter regarding the 'vintage multiplier' for old investors in the Renewable Energy Certificate (REC) sector is currently sub judice, affecting the Power Projects Division.

⚠️ Risk Analysis

Key Uncertainties

Volatility in domestic cotton yarn prices and potential adverse changes in the government's export incentive structure are the primary business risks.