💰 Financial Performance

Revenue Growth by Segment

Revenue from the single business segment (Trading of yarns) decreased by 42.97% YoY, falling from INR 14.37 Cr in FY24 to INR 8.195 Cr in FY25.

Geographic Revenue Split

Not disclosed in available documents; however, the company is primarily listed on the BSE in India.

Profitability Margins

Net Profit Margin improved from 9.19% in FY24 to 10.64% in FY25, despite a 33.97% decline in absolute Net Profit to INR 0.87 Cr, largely supported by a 72.6% increase in Other Income.

EBITDA Margin

EBITDA Margin improved from 11.72% in FY24 to 17.13% in FY25, with absolute EBITDA at INR 1.40 Cr; however, core operating EBITDA (excluding other income) turned negative in FY25.

Capital Expenditure

Capital expenditure is minimal as the company is primarily a trading entity; Property, Plant and Equipment carrying value decreased from INR 0.0017 Cr to zero in FY25.

Credit Rating & Borrowing

The company reported no defaults on loans or interest payments; finance costs increased by 280% YoY to INR 0.0312 Cr.

⚙️ Operational Drivers

Raw Materials

Textile yarns (for trading purposes), with the cost of materials consumed representing 69.63% of total revenue.

Capacity Expansion

The company currently operates as a trading entity with no reported manufacturing capacity; strategic exposure is maintained through a 49.87% stake in associate BMD Private Limited.

Raw Material Costs

Cost of materials consumed decreased by 24.33% YoY to INR 5.71 Cr, reflecting lower trading volumes.

Manufacturing Efficiency

Not applicable for the standalone trading business; however, associate BMD Private Limited maintains leadership in the OE segment for automotive fabrics.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is driven by the trading of yarns and leveraging the performance of associate company BMD Private Limited, which is expanding into high-performance specialized furnishing fabrics and renewable energy (Wind and Solar).

Products & Services

Trading of various textile yarns and indirect provision of automotive furnishing fabrics and renewable energy through its associate.

Brand Portfolio

LNJ Bhilwara Group.

New Products/Services

Indirect exposure to new renewable energy projects (Wind and Solar) through associate BMD Private Limited.

Strategic Alliances

Maintains a 49.87% stake in BMD Private Limited, an associate company.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized automotive textiles and renewable energy integration; the company's associate is positioned to capture these trends.

Competitive Landscape

Operates in a fragmented and competitive yarn trading market.

Competitive Moat

The company's moat is derived from its 49.87% stake in BMD Private Limited, which has a continuous track record in the specialized automotive OE segment, providing high entry barriers.

Macro Economic Sensitivity

Highly sensitive to textile industry demand cycles and interest rate fluctuations affecting finance costs.

Consumer Behavior

Increasing demand for high-performance and flame-retardant fabrics in the automotive and contract furnishing sectors.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with Ind AS and the Companies Act 2013; the company voluntarily discloses corporate governance despite being below mandatory thresholds.

Taxation Policy Impact

The company's effective tax rate for FY25 was 36.38%, with a total tax expense of INR 0.4987 Cr.

Legal Contingencies

No statutory dues of income tax, sales tax, GST, or customs duty are pending on account of any disputes as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Market price volatility of yarns and the performance of the automotive sector could impact margins by more than 5%.

Third Party Dependencies

High dependency on yarn manufacturers and suppliers for trading inventory.

Technology Obsolescence Risk

Low risk for the standalone trading business; moderate risk for the associate's manufacturing processes.

Credit & Counterparty Risk

Trade receivables movement of INR 0.62 Cr indicates active management of credit exposure.