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 2016 quarter results

For the quarter ended September 2016, it registered 14% fall in sales to Rs 580.69 crore.

OPM fell 190 basis points from 10.7% to 8.9% which saw OP fall 29% to Rs 51.53 crore.

Other income fell 25% to Rs 21.37 crore and interest cost jumped 114% to Rs 24 lakh. .

As depreciation fell 14% to Rs 16.62 crore, PBT fell 31% to Rs 56.04 crore.

EO due to VRS was Rs 24 lakh against Rs 15 lakh. Thus PBT after EO fell 31% to Rs 55.80 crore.

Tax fell 31% to Rs 17.88 crore, after which PAT fell 32% to Rs 37.92 crore.

Six months results

For the six months ended September 2016, it registered 12% fall in sales to Rs 1138.27 crore. OPM fell 210 basis points from 10.6% to 8.5% which saw OP fall 30% to Rs 96.55 crore.

Other income fell 17% to Rs 43.62 crore and interest cost jumped 107% to Rs 27 lakh. As depreciation fell 18% to Rs 35.01 crore, PBT fell 29% to Rs 104.90 crore.

EO due to VRS was Rs 40 lakh against Rs 58 lakh. Thus PBT after EO fell 29% to Rs 104.50 crore. Tax fell 30% to Rs 33.44 crore, after which PAT fell 28% to Rs 71.06 crore.

Segment results

During the quarter sales from Textile Machinery Division fell 20% to Rs 479.06 crore and accounted for 80% of sales. PBIT fell 40% to Rs 35.82 crore and accounted for 79% of total.

During the quarter sales from Machine Tool and Foundry Division jumped 48% to Rs 113.41 crore and accounted for 19% of sales. PBIT grew 53% to Rs 10.25 crore and accounted for 23% of total.

During the quarter sales from Advanced Technology Center Division grew 14% to Rs 5.32 crore and accounted for 1% of sales. Loss at PBIT level stood at Rs 51 lakh against Rs 2.55 crore and accounted for -1% of total.

During the quarter PBIT margins of Textile Machinery Division fell from 9.9% to 7.5%.

PBIT margins of Machine Tools and Foundry Division grew from 8.7% to 9.0%.

PBIT margins of Advanced Technology Center improved from -54.9% to -9.6%.

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.

The company has approved the buyback of 3,11,000 equity shares of the company at a price not exceeding Rs 4450 per share amounting to 2.76% of the paid up capital involving an amount of Rs 138.40 crore.

Valuation

The share price trades at Rs 4260.