Ludlow Jute Q1 FY27 Results (BSE: 526179)
Signal: Steady quarter
The read
The key trajectory is a sharp gross-margin deterioration to approximately 29.6% from approximately 94.2% YoY as materials consumed rose to ₹13279 lakh from ₹650 lakh, while revenue grew +67.6% to ₹18947 lakh and PAT grew only +48.8% to ₹667 lakh; lower finance costs of ₹221 lakh versus ₹361 lakh YoY partly cushioned the operating pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹189.47 Cr | +67.6% | +27.9% |
| Net profit | ₹6.67 Cr | +48.8% | |
| EPS | ₹5.97 | +43.2% | |
| EBIT margin | N/A |
P&L walk
Standalone revenue was ₹18947 lakh, +67.6% YoY and +27.9% QoQ, but gross margin fell to approximately 29.6% from approximately 94.2% YoY as material costs increased to ₹13279 lakh from ₹650 lakh; PAT still rose to ₹667 lakh, +48.8% YoY, helped by the higher operating base and lower finance costs.
Key positives
- Revenue increased to ₹18947 lakh, +67.6% YoY and +27.9% QoQ, establishing a substantially higher quarterly base.
- Employee benefits and other expenses rose approximately 9.2% YoY to ₹4196 lakh, materially slower than revenue growth of +67.6%.
- Finance costs declined to ₹221 lakh, -38.8% YoY, supporting PAT growth to ₹667 lakh, +48.8% YoY.
Key concerns
- Gross margin compressed to approximately 29.6% from approximately 94.2% YoY, with raw-material intensity rising to approximately 70.1% of revenue from approximately 5.8%.
- PAT growth of +48.8% lagged revenue growth of +67.6%, indicating weak conversion of top-line growth into earnings.
- ₹131.41 lakh of insurance-claim settlement proceeds were included in revenue, creating a non-operating or non-recurring component within reported sales.
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