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.

June 2017 quarter results

For the quarter ended June 2017, it registered a 25% rise in sales to Rs 696.14 crore.

OPM improved 210 basis points from 8.1% to 10.2% which saw OP rise 57% to Rs 70.74 crore.

Other income fell 3% to Rs 21.49 crore and interest cost fell 87% to Rs 3 lakh.

As depreciation rose 19% to Rs 21.80 crore, PBT grew 44% to Rs 70.44 crore.

EO due to VRS was Rs 40 lakh against Rs 16 lakh. Thus PBT after EO grew 44% to Rs 70.04 crore.

Tax grew 44% to Rs 22.41 crore, after which PAT grew 44% to Rs 47.63 crore.

FY 2017 results

In FY 2017, it registered 4% fall in sales to Rs 2432.26 crore. OPM fell 210 basis points from 12.6% to 10.5% which saw OP fall 20% to Rs 255.53 crore.

Other income fell 8% to Rs 90.60 crore and interest cost fell 57% to Rs 38 lakh. As depreciation fell 10% to Rs 74.73 crore, PBT fell 19% to Rs 271.02 crore.

EO due to VRS was Rs 4.70 crore against Rs 4.90 crore. Thus PBT after EO fell 19% to Rs 266.32 crore. Tax fell 30% to Rs 75.71 crore, after which PAT fell 13% to Rs 190.61 crore.

Segment results

During the quarter sales from Textile Machinery Division jumped 27% to Rs 602.93 crore and accounted for 84% of sales. PBIT jumped 57% to Rs 45.56 crore and accounted for 84% of total.

During the quarter sales from Machine Tool and Foundry Division jumped 27% to Rs 110.62 crore and accounted for 15% of sales. PBIT grew 93% to Rs 12.23 crore and accounted for 22% of total.

During the quarter sales from Advanced Technology Center Division fell 31% to Rs 4.12 crore and accounted for 1% of sales. It reported a loss Rs 3.32 crore against a loss of Rs 1.67 crore at PBIT level and accounted for -6% of total.

In FY 2017 sales from Textile Machinery Division fell 17% to Rs 2057.075 crore and accounted for 82% of sales. PBIT fell 37% to Rs 156.77 crore and accounted for 76% of total.

In FY 2017 sales from Machine Tool and Foundry Division jumped 39% to Rs 410.26 crore and accounted for 16% of sales. PBIT grew 124% to Rs 50.29 crore and accounted for 24% of total.

In FY 2017 sales from Advanced Technology Center Division grew 9% to Rs 26.96 crore and accounted for 1% of sales. It reported a profit of Rs 5 lakh against a loss of Rs 7.11 crore at PBIT level and accounted for 0% of total.

During the quarter PBIT margins of Textile Machinery Division grew from 6.1% to 7.6%.

PBIT margins of Machine Tools and Foundry Division grew from 7.3% to 11.1%.

PBIT margins of Advanced Technology Center fell from -27.9% to -80.5%.

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 had 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.

During the March 2017 quarter 311000 shares (2.76% of total) was bought back at the offer price of Rs 4450 per share.

Valuation

The share price trades at Rs 5933.