Cheviot Company Limited Earnings Summary — Q4 FY2002
Cheviot Company Maintains Strong Export Focus Amid Historical Growth Stagnation
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 1.3% sequentially in Q4 FY2026.
- Revenue of ₹141 Cr is 5.1% higher year-on-year.
- Revenue has compounded at 17.2% annualised over the last 10 quarters.
- Net profit of ₹-9 Cr is 197.2% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -2.0% annualised across the period.
- Operating margin stands at 12.4% in Q4 FY2026.
- Operating margin compressed by 300 bps year-on-year.
- Over the last two years operating margin has expanded by 386 bps.
- PBT margin is -6.1%.
- Expenses grew 8.8% against revenue growth of 5.1%.
- Operating profit of ₹17 Cr is 15.4% lower year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 50/100 (Moderate) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 | Q3 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 141 | 139 | 148 | 120 | 134 | 108 | 103 | 95 | 123 | 98 |
| Expenses | Improving | 123 | 123 | 126 | 100 | 113 | 94 | 93 | 86 | 112 | 89 |
| Operating Profit | Improving | 17 | 16 | 23 | 20 | 21 | 14 | 10 | 8 | 10 | 9 |
| Operating Margin | Improving | 12.4% | 11.3% | 15.2% | 16.6% | 15.4% | 12.8% | 10.0% | 8.8% | 8.5% | 9.4% |
| Other Income | Volatile | -24 | 8 | -0 | 18 | -6 | -6 | 16 | 24 | 10 | 14 |
| Interest | Volatile | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | Improving | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Profit Before Tax | Volatile | -9 | 22 | 20 | 36 | 13 | 6 | 25 | 31 | 19 | 21 |
| Tax | Volatile | 1 | 5 | 5 | 7 | 4 | 2 | 6 | 5 | 4 | 3 |
| Net Profit | Volatile | -9 | 17 | 15 | 29 | 9 | 3 | 18 | 27 | 15 | 18 |
| Net Margin | Volatile | -6.4% | 12.4% | 10.0% | 24.0% | 7.0% | 3.2% | 18.0% | 28.0% | 12.2% | 18.2% |
Key Takeaways
- Cheviot maintains a near debt-free balance sheet with high financial prudence.
- The company holds a 'Three Star Export House' status, specializing in value-added jute yarns and hessian cloth.
- A significant portion of revenue is anchored by the production of over 50 million jute bags annually for the Government of India.
- Stock price CAGR has been negative over 1, 3, and 5-year periods, reflecting recent growth headwinds.
- Promoter holding remains exceptionally high and stable at 74.88%, indicating strong alignment with long-term survival.
- The company faces high customer concentration risk due to its dependency on government food grain packaging orders.
Management Guidance
Management remains focused on quality-first global supply, supported by ISO and OEKO-TEX certifications, while maintaining a conservative, debt-free capital structure through commodity cycles.
Sentiment Shift
Stable
While operations remain stable and the balance sheet is robust, the lack of aggressive growth initiatives and negative multi-year stock performance suggest a steady-state phase.
Outlook
The outlook remains focused on maintaining niche specialty jute market share and steady government contracts, though valuation multiples appear high relative to historical growth rates.
From the Annual Report (Key Quotes)
“The business operates as a niche specialty jute manufacturer with a 'Three Star Export House' status.”
“The Kanoria family leadership provides a stable and multi-generational business vision focused on specialty jute.”
“There is clear discipline in avoiding debt, which protects the business during commodity downturns.”
Official Quarterly Documents
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This summary is AI-generated from Cheviot Company Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.