Why Did Laxmi Dental's Profit Plummet Nearly 44% in Q4?
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Synopsis
Laxmi Dental's financial performance has taken a hit, with a staggering 44% drop in net profit for Q4 FY25. Despite rising income, escalating expenses have led to this decline. This article dives into the reasons behind this financial shift and what it means for the future of the dental products giant.
Key Takeaways
- Laxmi Dental reported a 44% decline in net profit for Q4 FY25.
- Total income rose by 12.53% to Rs 62.29 crore.
- Expenditure surged by 18% year-on-year to Rs 56.69 crore.
- Overall profit for FY25 was Rs 31.83 crore, up 26% from the previous year.
- Company's total income increased significantly from Rs 195 crore to Rs 242 crore.
Mumbai, May 27 (NationPress) On Tuesday, Laxmi Dental reported a significant drop of nearly 44 percent (year-on-year) in its net profit, totaling Rs 4.2 crore in Q4 FY25, a decrease from Rs 7.7 crore during the equivalent period last year.
As per its filing with the stock exchange, the company's profit also dipped by 12.5 percent compared to the previous quarter, where Laxmi Dental's profit was Rs 4.8 crore in the December quarter of FY25.
The decline in profit is attributed to a notable increase in expenses.
For the March quarter of FY25, the company’s total expenditure reached Rs 56.69 crore, which is an 18 percent rise from Rs 48.02 crore in the same quarter last year.
On a quarterly basis, the company’s expenses decreased by approximately 1.5 percent, down from Rs 57.53 crore in the December quarter.
In the March quarter of FY25, Laxmi Dental's total income was Rs 62.29 crore, showing an increase of 12.53 percent from Rs 55.35 crore in the same period of FY24.
However, total income remained relatively stable quarter-over-quarter, with Rs 62.24 crore reported in the December quarter.
For the entire FY25, Laxmi Dental recorded a profit of Rs 31.83 crore, reflecting a 26 percent increase from Rs 25.22 crore in FY24. During this timeframe, the company's total income rose from Rs 195 crore to Rs 242 crore.
Simultaneously, total expenditure for FY25 surged by 16 percent year-on-year to Rs 217 crore, compared to Rs 186 crore in FY24.
Founded in 2004, Laxmi Dental is an integrated dental products company with a diverse range of offerings. As of December 2023, it stands as the largest exporter among Indian dental labs by export value, reaching over 95 countries.
Rajesh Khakhar, Chairperson and Whole-Time Director of Laxmi Dental Limited, stated, “We achieved our full-year targets and recorded our highest annual performance in terms of Revenue, EBITDA, and PAT.”
Point of View
It reflects broader challenges in the industry where rising costs are becoming a significant concern. The company's ability to adapt and manage expenses while maintaining growth in income will be critical for its future stability. This situation calls for strategic approaches to ensure continued success in a competitive market.
NationPress
07/09/2025
Frequently Asked Questions
What caused Laxmi Dental's profit drop in Q4?
The drop in profit is primarily attributed to a surge in expenses, despite an overall increase in total income.
How much did Laxmi Dental's total income increase?
Laxmi Dental's total income rose by 12.53 percent, reaching Rs 62.29 crore in Q4 FY25.
What was Laxmi Dental's profit for the entire FY25?
For FY25, Laxmi Dental reported a profit of Rs 31.83 crore, a 26 percent increase from the previous year.
How has Laxmi Dental's expenditure changed?
The total expenditure for FY25 increased by 16 percent to Rs 217 crore compared to Rs 186 crore in FY24.
Where does Laxmi Dental stand in the dental products industry?
Laxmi Dental is recognized as the largest exporter among Indian dental labs by export value, with a presence in over 95 countries.
