Laxmi Dental IPO

Laxmi Dental claims to specialise in custom-made dental prostheses. The company offers products like metal-free crowns and bridges. The company’s portfolio includes premium zirconia crowns and bridges under the brand "Illusion Zirconia," as well as porcelain-fused-to-metal (PFM) crowns, bridges, and dentures.

The company’s manufacturing facilities in Boisar comply with the quality system regulations enforced by the United States Food and Drug Administration (US FDA). Additionally, the units in Mira Road and Boisar are ISO 13485:2016 certified for quality management systems (QMS) for medical devices.

Between FY22 and September 30, 2024, Laxmi Dental has built a strong dental network that supplies products to over 22,000 dental clinics, dental companies, and dentists.

The company’s thermoforming machines, thermoforming sheets, and biocompatible resins have obtained a certificate of conformity under EU Regulation 2017/745.

The company provides a range of pediatric dental products, including pre-formed branded pediatric crowns, Silver Diamine Fluoride (SDF), space maintainers, fissure sealants, reinforced splints, and mineral trioxide aggregate.

Laxmi Dental has received a design registration in India for "Bioflx," a semi-flexible, tooth-coloured, pre-formed dental crown for children. The company has partnered with a leading pediatric dental company to distribute Bioflx crowns across 81 countries worldwide.

As part of the company’s digital dentistry initiatives, the company launched iScanPro, a branded intraoral scanner. Over 160 intraoral scanners were deployed in the Indian market to promote the adoption of digital dental practices.

The company has seen a consistent increase in revenue from operations. Revenue from operations increased from Rs 136.84 crore in FY22 to Rs 161.63 crore in FY23 to Rs 193.55 crore in FY24.

Laxmi Dental reported a loss of Rs 18.68 crore in FY22 and Rs 4.16 crore in FY23. There is no assurance that such losses will not recur in the future.

The company’s business relies on expanding its dental network, obtaining recommendations from the network, and increasing the revenue per dental clinic, company, and dentist. This B2B2C model, which involves the sale of dental products through the dental network, contributed Rs 95.25 crore (82.34%) during the six months ending September 30, 2024, and Rs 159.69 crore (83.41%), Rs 123.34 crore (77.60%), and Rs 98.03 crore (75.71%) in FY24, FY23, and FY22, respectively, to the revenue from operations. Any failure to sustain or grow this model could negatively impact the business, operations, and financial stability.

The company’s operations are geographically concentrated in a few regions, out of which, India and the US are the major contributors. India contributed Rs 78.09 crore (67.51%) in the six months ending September 30, 2024, and Rs 129.16 crore (67.46%), Rs 108.82 crore (68.47%), and Rs 75.46 crore (58.28%) in FY24, FY23, and FY22, respectively, to the revenue from operations. The US contributed Rs 22.07 crore (19.08%) during the same six months and Rs 37.17 crore (19.41%), Rs 29.53 crore (18.58%), and Rs 36.72 crore (28.36%) in FY24, FY23, and FY22, respectively, to the revenue from operations. Any loss of business in these key markets could adversely affect the company’s financial performance and operations.

The company, its subsidiaries, promoters, and directors are involved in certain ongoing legal proceedings. There is also a pending case against the company’s promoter, chairperson, and whole-time director. Any adverse judgments in any of these cases could prove to be detrimental to the company’s business prospects

Most of Laxmi Dental’s manufacturing facilities are located in and around Mumbai. Any adverse developments in this region could negatively affect the company’s operations and finances.

Imports and exports are critical to the company’s business. Exports contributed Rs 37.58 crore (32.49%) during the six months ending September 30, 2024, and Rs 62.29 crore (32.54%), Rs 50.12 crore (31.53%), and Rs 54.02 crore (41.72%) in FY24, FY23, and FY22, respectively, to the revenue from operations. Any difficulty in managing overseas operations or expanding into new international markets could hinder growth and negatively impact the company’s prospects.

The company reported a total indebtedness of Rs 40.91 crore for the six months ending September 30, 2024. Any inability to repay or service these loans could harm the company’s financial position.