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LMW – Textile machinery major has reported subdued performance for the quarter ended September 12 with 38% dip in the Net Profit at Rs 30.64 crore over 18% decline in the net sales at Rs 458.79 crore. Although there is a y-o-y decline, the company has reported flat q-o-q net profit over 8% increase in revenues. OPM marginally improved from 12.3% in the quarter ended June 12.
Quarterly Performance
For the quarter ended September 12, the company has reported 18% decline in the Net sales at Rs 458.79 crore mainly on the back of 18% dip in the revenues from its major Textile Machinery division at Rs 407.09 crore. While the revenues improved on q-o-q basis by 10%, the capacity additions in textile industry were kept on hold resulting in lower capex and therefore the orders for the company. Adding to the above, increasing interest rate cycle has also been concern for the working capital and labor intensive textile Industry. Reflecting the economic slowdown and increase in competitiveness, revenues from machine tool and foundry business also slipped 32% to Rs 59.33 crore. This division has reported 14% decline in revenues on q-o-q basis. Textile Machinery division constitutes lion's share of total revenues at 87% while the machine tool and foundry business constitutes remaining 13%. The other operating income has improved 6% to Rs 10.82 crore and led Total income from operations at Rs 469.61 crore a decline of 18%.
On the other hand, the consumption cost as % of sales net of stock adjustments inched up 40 bps to 61.5%. All the other costs including employee cost and other cost jumped up and pulled OPM down 12.9% a decline of 90 bps. On the segment front, textile machinery division has reported 290 bps dip in margins to 8.2% while that from Machine tool and foundry division declined 610 bps to 8%. Resultantly, Operating profit declined 23% to Rs 60.80 crore.
The other income declined 43% to Rs 12.10 crore and led PBIDTA down 27% to Rs 72.90 crore. Depreciation marginally inched up 1% to Rs 28.33 crore and led PBT down 39% to Rs 44.39 crore.
At segment level, the profits from textile machinery division slipped 39% to Rs 33.38 crore while that of Machinery tool division declined 61% to Rs 4.77 crore. After accounting 90 bps decline in effective tax rate at 31%, Net profit was down 38% to Rs 30.64 crore.
Half yearly Performance:
For the half year ended September 12, the company has reported 32% decline in the net profit on the back of 17% decline in the net sales at Rs 882.85 crore.
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