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.

December 2017 quarter results

For the quarter ended December 2017, it registered a 7% fall in sales to Rs 542.42 crore.

OPM fell 30 basis points from 11.7% to 11.4% which saw OP fell 9% to Rs 61.80 crore.

Other income grew 21% to Rs 32.71 crore and interest cost rose 313% to Rs 23 lakh.

As depreciation fell 10% to Rs 14.16 crore, PBT grew 1% to Rs 80.13 crore.

EO due to VRS was Rs 27 lakh against Rs 4.07 crore. Thus PBT after EO grew 6% to Rs 79.85 crore.

Tax grew 10% to Rs 26.51 crore, after which PAT grew 4% to Rs 53.35 crore.

Nine months results

For the nine months, it registered a 5% rise in sales to Rs 1811.60 crore.

OPM improved 140 basis points from 9.6% to 11.0% which saw OP rise 21% to Rs 198.72 crore.

Other income grew 5% to Rs 74.38 crore and interest cost rose 71% to Rs 55 lakh.

As depreciation went up 7% to Rs 54.19 crore, PBT grew 18% to Rs 218.36 crore.

EO due to VRS was Rs 69 lakh against Rs 4.48 crore. Thus PBT after EO grew 21% to Rs 217.67 crore.

Tax grew 17% to Rs 67.48 crore, after which PAT grew 23% to Rs 150.19 crore.

Segment results

During the quarter sales from Textile Machinery Division stood at Rs 391.09 crore and accounted for 70% of sales. PBIT fell 24% to Rs 34.61 crore and accounted for 53% of total.

During the quarter sales from Machine Tool and Foundry Division stood at Rs 143.21 crore and accounted for 26% of sales. PBIT grew 49% to Rs 24.10 crore and accounted for 37% of total.

During the quarter sales from Advanced Technology Center Division stood at Rs 25.62 crore and accounted for 5% of sales. It reported a profit Rs 6.82 crore against a loss of Rs 1.03 crore at PBIT level and accounted for 10% of total.

For the nine months sales from Textile Machinery Division stood at Rs 1449.48 crore and accounted for 77% of sales. PBIT grew 11% to Rs 123.16 crore and accounted for 70% of total.

For the nine months sales from Machine Tool and Foundry Division stood at Rs 389.29 crore and accounted for 21% of sales. PBIT grew 58% to Rs 51.81 crore and accounted for 30% of total.

For the nine months sales from Advanced Technology Center Division stood at Rs 34.38 crore and accounted for 2% of sales. It reported a profit Rs 40 lakh against a loss of Rs 3.21 crore at PBIT level and accounted for 0% 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 6201.