LMW diversified into CNC Machine Tools and is a brand leader in manufacturing customised products.

LMW Foundry makes Precision Castings for industries world over.

LMW has also added the Advanced Technology Centre to produce components for Aerospace Industry.

September 2015 quarter results

For the quarter ended September 2015, it registered 5% rise in sales to Rs 619.82 crore.

OPM fell 140 basis points from 13.1% to 11.7% which saw OP at Rs 72.25 crore, down 6%..

Other income grew 8% to Rs 28.50 crore and interest cost fell 54% to Rs 11 lakh.

As depreciation fell 17% to Rs 19.34 crore, PBT grew 2% to Rs 81.30 crore.

EO due to VRS was Rs 15 lakh against Rs 6.58 crore. Thus PBT after EO grew 11% to Rs 81.15 crore.

Tax fell 7% to Rs 24.67 crore after which PAT went down 21% to Rs 56.48 crore.

Six months results

For the six months ended September 2015, it registered 2% rise in sales to Rs 1184.01 crore.

OPM fell 70 basis points from 12.3% to 11.6% which saw OP at Rs 137.75 crore, down 4%..

Other income fell 1% to Rs 52.66 crore and interest cost fell 54% to Rs 13 lakh.

As depreciation fell 10% to Rs 42.50 crore, PBT went down 1% to Rs 147.78 crore.

EO due to VRS was Rs 58 lakh against Rs 7.48 crore. Thus PBT after EO grew 4% to Rs 147.20 crore.

Tax grew 3% to Rs 46.86 crore after which PAT went up 5% to Rs 100.34 crore.

FY 2015 results

In FY 2015, it registered a 6% rise in sales to Rs 2384.82 crore.

OPM improved 70 basis points to 12.1% which saw OP growing 12% to Rs 288.29 crore.

PBT had grown 11% to Rs 297.49 crore.

EO loss due to VRS grew 16% to Rs 9.49 crore. Thus PBT after EO grew 16% to Rs 9.49 crore.

PAT had gone up 13% to Rs 207.45 crore.

Machine Tool and Foundry Division posts poor show

During the quarter sales from Textile Machinery Division grew 8% to Rs 558.97 crore and accounted for 88% of sales. PBIT grew 16% to Rs 59.14 crore and accounted for 93% of total.

For the six months, sales grew 2% to Rs 1065.885 crore and accounted for 89% of total. PBIT grew 1% to Rs 102.61 crore and accounted for 93% of total.

During the quarter sales from Machine Tool and Foundry Division fell 10% to Rs 68.02 crore and accounted for 11% of sales. PBIT fell 19% to Rs 6.68 crore and accounted for 11% of total.

For the six months, sales fell 3% to Rs 123.82 crore and accounted for 10% of total. PBIT fell 3% to Rs 11.02 crore and accounted for 10% of total.

Advanced Technology Center reduces loss

During the quarter sales from Advanced Technology Center Division grew 1% to Rs 4.65 crore and accounted for 1% of sales. Loss at PBIT level stood at Rs 2.25 crore against a loss of Rs 3.76 crore and accounted for -4% of total.

For the six months ended September 2015, sales from this division grew 56% to Rs 11.86 crore and accounted for 1% of total. Loss at the PBIT level fell 52% to Rs 3.86 crore and accounted for -4% of total.

Being the third year of commercial operation Advanced Technology Center Division has shown a good improvement. This division has received orders from leading international tier II aerospace product suppliers from USA, France, Canada and Netherlands.

To meet with the increasing requirements, necessary facilities have been established for special chemical milling process, non-conventional machining operation which is used mainly in manufacture of aircraft wings and outer structures. In India, next to HAL, LMW is the only company to have such a facility.

This division has received suitable quality certification to enable it to qualify for supplying to international orders. With the civil aviation industry expected to expand rapidly in future, this division is well placed to capitalise on market opportunities.

A worldwide reputed company

LMW has been consistently at the forefront of technological advancements in textile machinery. Over a period of time, the company has gained a worldwide reputation for its state-of-the-art technology and high quality standards. LMW has a major role as a totally integrated spinning system manufacturer.

Spinning machines from LMW contributes to a large extent in keeping Indian production costs down and quality standards up.

Continuous upgradation of manufacturing technology and the ability to provide complete range of contemporary textile machinery at a competitive price makes LMW a natural partner of choice.

Valuation

The share price trades at Rs 3512.