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 2017 quarter results

For the quarter ended September 2017, it registered a 9% rise in sales to Rs 573.04 crore.

OPM improved 120 basis points from 9.8% to 11.0% which saw OP rise 23% to Rs 63.17 crore.

Other income fell 6% to Rs 20.17 crore and interest cost rose 30% to Rs 32 lakh.

As depreciation rose 10% to Rs 18.23 crore, PBT grew 16% to Rs 64.79 crore.

EO due to VRS was Rs 2 lakh against Rs 24 lakh. Thus PBT after EO grew 16% to Rs 64.77 crore.

Tax grew 4% to Rs 18.56 crore, after which PAT grew 22% to Rs 46.22 crore.

Six months results

For the six months, it registered a 17% rise in sales to Rs 1207.19 crore.

OPM improved 170 basis points from 9.4% to 11.1% which saw OP rise 39% to Rs 133.92 crore.

Other income fell 4% to Rs 41.66 crore and interest cost rose 20% to Rs 32 lakh.

As depreciation went up 14% to Rs 18.23 crore, PBT grew 29% to Rs 135.23 crore.

EO due to VRS was Rs 42lakh against Rs 40 lakh. Thus PBT after EO grew 29% to Rs 134.81 crore.

Tax grew 23% to Rs 40.97 crore, after which PAT grew 32% to Rs 93.84 crore.

Segment results

During the quarter sales from Textile Machinery Division stood at Rs 455.47 crore and accounted for 76% of sales. PBIT grew 20% to Rs 42.98 crore and accounted for 78% of total.

During the quarter sales from Machine Tool and Foundry Division stood at Rs 135.46 crore and accounted for 23% of sales. PBIT grew 51% to Rs 15.48 crore and accounted for 28% of total.

During the quarter sales from Advanced Technology Center Division stood at Rs 4.64 crore and accounted for 1% of sales. It reported a loss Rs 3.10 crore against a loss of Rs 51 lakh at PBIT level and accounted for -6% of total.

For the six months sales from Textile Machinery Division stood at Rs 1058.39 crore and accounted for 81% of sales. PBIT grew 37% to Rs 88.54 crore and accounted for 81% of total.

For the six months sales from Machine Tool and Foundry Division stood at Rs 246.07 crore and accounted for 19% of sales. PBIT grew 67% to Rs 27.71 crore and accounted for 25% of total.

For the six months sales from Advanced Technology Center Division stood at Rs 8.77 crore and accounted for 1% of sales. It reported a loss Rs 6.42 crore against a loss of Rs 2.17 crore at PBIT level and accounted for -6% of total.

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 5895.