![[fetch_key]](https://stocktradeupdates.com/wp-content/uploads/new_logos/LXCHEM.png)
Share the post "Laxmi Organic Industries ‘s Latest Q2 Report: Profit Up by 76.43% Year-on-Year"
Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 16.93 % in the past year, substantial increase in net sales/revenue by 3.73 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -14.15 %, Marginal decrease of -12.94% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Laxmi Organic Industries Limited. Notable increase of 76.42 % in net profit Year to Year, Laxmi Organic Industries Limited’s profitability dropped by -10.63 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 73.86 % Year to Year. EPS decreased by -8.93 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 636.442 Cr | Rs. 717.454 Cr | Rs. 744.182 Cr | + 3.73 % | + 16.93 % |
| Expenses | Rs. 588.29 Cr | Rs. 635.5 Cr | Rs. 667.76 Cr | + 5.08 % | + 13.51 % |
| Operating Profit | Rs. 48.15 Cr | Rs. 81.95 Cr | Rs. 76.42 Cr | -6.75 % | + 58.71 % |
| OPM % | 7.57 % | 11.42 % | 10.27 % | -1.15 % | + 2.7 % |
| Other Income | Rs. 12.323 Cr | Rs. 12.152 Cr | Rs. 10.579 Cr | -12.94 % | -14.15 % |
| Interest | Rs. 4.08 Cr | Rs. 3.07 Cr | Rs. 3.08 Cr | + 0.33 % | -24.51 % |
| Depreciation | Rs. 22.3 Cr | Rs. 20.75 Cr | Rs. 22.27 Cr | + 7.33 % | -0.13 % |
| Profit before tax | Rs. 34.09 Cr | Rs. 70.28 Cr | Rs. 61.65 Cr | -12.28 % | + 80.84 % |
| Tax % | 31.19 % | 34.11 % | 32.87 % | -1.24 % | + 1.68 % |
| Net Profit | Rs. 23.46 Cr | Rs. 46.31 Cr | Rs. 41.39 Cr | -10.62 % | + 76.43 % |
| EPS in Rs | Rs. 0.87 | Rs. 1.66 | Rs. 1.51 | -9.04 % | + 73.56 % |
Today, we’re looking at Laxmi Organic Industries Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 16.93 %. However, it did see a marginal increase of 3.73 % from the previous quarter. Expenses ticked up slightly by 5.08 % quarter-on-quarter, aligning with the annual rise of 13.51 %. Operating profit, while up 58.71 % compared to last year, faced a quarter-on-quarter dip of -6.75 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 2.7 %, but a shrinkage of -1.15 % sequentially. Other income fell by -12.94 % compared to the last quarter, despite an annual decline of -14.15 %. Interest expenses surged remarkably by 0.33 % from the previous quarter, yet the year-over-year decrease remains at a moderate -24.51 %. Depreciation costs climbed by 7.33 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -0.13 %. Profit before tax grew annually by 80.84 % but saw a reduction from the preceding quarter by -12.28 %.
Tax expenses as a percentage of profits increased slightly by 1.68 % compared to last year, with a more notable quarter-on-quarter decrease of -1.24 %. Net profit rose by 76.43 % year-on-year but witnessed a -10.62 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 73.56 % but a quarterly fall of -9.04 %. In summary, Laxmi Organic Industries Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 636.442 Cr | Rs. 717.454 Cr | Rs. 744.182 Cr | + 3.73 % | + 16.93 % |
| Expenses | Rs. 588.29 Cr | Rs. 635.5 Cr | Rs. 667.76 Cr | + 5.08 % | + 13.51 % |
| Operating Profit | Rs. 48.15 Cr | Rs. 81.95 Cr | Rs. 76.42 Cr | -6.75 % | + 58.71 % |
| Net Profit | Rs. 23.46 Cr | Rs. 46.31 Cr | Rs. 41.39 Cr | -10.62 % | + 76.43 % |
| EPS in Rs | Rs. 0.87 | Rs. 1.66 | Rs. 1.51 | -9.04 % | + 73.56 % |
In reviewing Laxmi Organic Industries Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 16.93 % year-on-year growth, however, there was a minor increase of 3.73 % from the previous quarter. Expenses rose by 13.51 % compared to the previous year, with a 5.08 % increase quarter-on-quarter. Operating Profit surged by 58.71 % annually, and saw a -6.75 % decrease from the last quarter.
Net Profit showed yearly increase of 76.43 %, and experienced a -10.62 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 73.56 % annually, however dipped by -9.04 % compared to the last quarter. In essence, while Laxmi Organic Industries Limited exhibits strong annual growth indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
7
3-Year Profit
14
5-Year Profit
0
10-Year Profit
260
Current Price
7,196
Market Cap
In analyzing the financial results for the company marked by BSE code 543277, a clear trend emerges. Over a five-year span, the company reported a profit of 14 percents, which increased to 7 percents in the most recent three-year period, suggesting a strong performance in the early stages of this timeframe. However, this success has been overshadowed by a trailing twelve-month (TTM) loss of 49 percents, signaling significant recent challenges. Compounding this issue is the fact that the company has not reported any sales during any of the timeframes analyzed, raising important questions about its operational model and the sustainability of its current strategies. Investors have been equally wary, as reflected in the stock price performance. The company’s stock traded at 0 percents over the past five years but has recently decreased to -7 percents, indicating a loss of market confidence. Over the last decade, the stock price was at 0 percents, pointing to longer-term concerns that could affect the company's future prospects.
The company has a market capitalization of ₹7,196 crore and is currently trading at a stock price of ₹260. Over time, the stock has fluctuated between the historical highs and lows of ₹326 / 220, reflecting the market's volatility. With a Price-to-Earnings (P/E) ratio of 53.7, the stock appears highly valued, indicating that investors are willing to pay a premium for its earnings potential. The company's book value per share stands at ₹67.1, showcasing the underlying asset value. Additionally, the dividend yield is 0.23%, suggesting that the company offers shareholders a moderate return on their investment in the form of dividends. The Return on Capital Employed (ROCE) is 9.40%, indicating the efficiency with which the company generates profit from its capital. Meanwhile, the Return on Equity (ROE) is 7.36%, highlighting the profitability relative to shareholder equity. Despite these figures, the company maintains a very low debt-to-equity ratio of 0.11, signaling minimal leverage. It also reports a net cash flow of ₹30.1 crore, reflecting the company's ability to generate cash. The Piotroski score is 6.00, a measure of the company's financial strength, while the Graham Number estimates the intrinsic value of the stock at ₹85.6. The Price-to-Book (P/B) ratio of 3.87 further suggests that the stock is trading at a premium relative to its book value, potentially reflecting positive market sentiment or expectations of future growth.
