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The leading textile machinery player in India - Lakshmi Machine Works (LMW) has reported 129% growth in the Net Profit to Rs 30.50 crore for the quarter ended December 09, owing to lower base in the corresponding previous year. On a sequential basis, Net Profit of the company has slipped by 6% from Rs 32.37 crore in quarter ended September 09. The Total income from operations of the company has increased by 26% on y-o-y basis to Rs 336.17 crore on the back of 25% increase in the revenues from textiles segment to Rs 290.96 crore in the quarter under review.
With a fresh order flow of Rs 480 crore for the nine months period, the order book of the company stood at Rs 2960 crore as on quarter ended December 09. The company has planned to use its spare machine capacity, for manufacturing of components /parts required in the field of Aero Space and Defense. The company has already registered with BDL and HIL for the orders in this space. Going ahead, the company expects to report flat or marginal growth in the Net Profit in FY10.
Quarterly Performance
For the quarter ended December 09, LMW has reported modest 26% rise in the Total income from Operations to Rs 336.17 crore on the back of 28% increase in the Net sales to Rs 327.91 crore. Revenues from the Textile machinery segment have moved up by 25% to Rs 290.97 crore contributing 86% of the total sales. The Segment margins of textiles segment improved on y-o-y basis to 11.1%, while that of files and tools rose to 12.1% and helped Operating Profit margin up by 550 bps to 18.9% in the quarter under review. On the other hand, the total expenditure as % of sales net of stock adjustment has declined by 1210 bps to 80.8%. Thus the Operating Profit has up by 77% to Rs 63.40 crore for the quarter ended December 09.
Further the other income of the company has declined by 47% to Rs 10.08 crore and depreciation slided by 19% to Rs 27.98 crore there by powering PBT up by 122% to Rs 40.50 crore. At segment level, Textiles machinery segment has reported Rs 32.40 crore (as against meager Rs 6.49 crore) constituting 85% of the total segmental profit. Finally dip in the effective tax rate by 220 bps to 33% has resulted in Net Profit up by 129% to Rs 30.50 crore.
Performance for nine months period
For the nine months ended December 09, total income from Operations of the company fell by 32% to Rs 806.89 crore. OPM was under pressure and fell by 60 bps to 17.4% and pulled down Operating Profit by 34% to Rs 140.48 crore. The other income of the company has marginally grew by 3% to Rs 38.73 crore while the depreciation fell by 31% to Rs 68.20 crore paving PBT down by 27% to Rs 111 crore. The effective tax rate of the company fell by 150 bps to 33.3% and resulted, Net Profit at Rs 74 crore, down by 25% on y-o-y basis.
Other information:
- The scrip of the company is hovering at Rs 2010.80 on BSE.
- The company has proposed to start Advanced Technology Center for manufacture of components /parts required in the field of Aero Space and Defense.
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