Lakshmi Machine Works hosted a
conference call on May 28, 2024. In the conference call the company was
represented by V Senthil, Chief
Financial Officer, and B. Dhanalakshmi,
Senior General Manager.
Key takeaways of the call
TMD order book is Rs 3570 crore
(down from Rs 4000 crore as end of Dec 2023 and Rs 5000 crore as end of Mar
2023) and of which the active orders are of about Rs2300 crore (down from Rs
3050 crore as end of Dec 2023). Export orders were about Rs 300 crore.
The ATC order book is upwards of
Rs 200 crore and to be executed over 18 months period.
TMD –Challenging times for
textile industry (impact of cotton price on customers) leads to downtrend in
order inflow and that is getting reflected on the order book of the company. Nine
months of prolonged slowdown in textile sector. However no quarter goes without
orders with some or other large players placing orders. Expect at least two
more quarter to go to reach normalcy in capacity utilization for TMD.
MTD – New products are driving
growth. Capacity utilization of the company is in the range of 65% and the
company’s MTD business still in investment phase. It continues to invest in
capacity as it is a growing business for the company. Since it is building capacity, the margin
will improve as operational efficiency kicks in.
ATC –This division manufactures
components such as engine parts and other body parts for various aircraft
manufacturers. The ATC Business is split into two parts i.e. metallics (90%
exports; 10% domestic) and composites. It caters to both domestic and export
market. Invested Rs 20 crore in capacity
in FY24. The ATC capacity is fungible
and can produce products depends on the order. The business is of long lead
items and thus has large inventory buildup. When there is pull in from the
customers the quarterly revenue will be more. Aerospace revenue is Rs 110 crore
out of RS 160 crore in FY24. Export
accounted for 90% of the sales of ATC.
TMD business: Project orders are
driving the Sales turnover of TMD business as the off take of machines are
delayed. The company has cut down the working days per week for TMD business.
It is now working only for 5 days a week. Revised the prices starting April 1, 2024 and
this will hold for 2 years. Domestic market share of the company for all
textile machines will be about 72% and that at global level will be about
12-15%.
Consolidated Revenue mix TMD: For
Q4FY24 Domestic 75%; Exports 12%, spares 13%. For FY24 Domestic 70%, exports
19% and spares 11-12%.
TMD: AutoKoners is under test run
and the commercial launch will be in 2 months. The RAP (robotic auto pacing) machine
is an automation tool for companies as it substantially reduce man power
requirement.
During the fiscal added 5MW of
solar power in Q4FY24 taking the overall renewable capacity to 53 MW.
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