Quarterly Performance:

For the quarter ended June 11, the company has reported 50% increase in the topline at Rs 502.14 crore on the back of strong increase in the revenues from both the business; while the other income from operations slipped by 22% to Rs 9.01 crore and led total income from operations up by 48% to Rs 511.15 crore. Revenues from textile machinery business have increased by 45% to Rs 438.14 crore and that of Machine tools and foundry business has improved by 69% to Rs 75.47 crore. Textile machinery business accounts major 85% of the total revenues and that of Machine tool and foundry business constituted remaining 15% of the revenues.

OPM was under pressure and slipped by 230 bps to 13.9% owing to spike in raw material cost. Consumption cost as % of sales net of stock adjustments has inched up by 210 bps to 61.6% and other costs increased by 170 bps to 16.7% in the quarter under review. On the positive side, employee cost has declined by 180 bps to 8.3%. At the segment level, margins from textile machinery business have slipped by 60 bps to 9.7% while that of Machine tools and foundry has improved by 100 bps to 7.3%. Resultantly, Operating profit was up by 27% to Rs 70.88 crore. The other income increased by 6% to Rs 14.57 crore and led PBIDT up by 23% to Rs 85.45 crore. As a debt free company, the company enjoys nil interest cost; while depreciation marginally moved up 2% to Rs 24.81 crore.

At segment level, the profits from Textile machinery segment has improved by 36% to Rs 42.33 crore and constituted major 89% of the segment profit. The profit from machine tool and foundry business grew by 95% to Rs 5.48 crore and constituted remaining 11% of the segment profit. Resultantly, PBT was up by 34% to Rs 60.64 crore. After accounting 130 bps dip in the effective tax rate at 32.2%, Net Profit was up by 37% to Rs 41.14 crore.

Yearly Performance:

For the year ended March 11, LMW has reported 56% increase in the net sales at Rs 1773.31 crore, thanks to 56% jump in the textile machinery division at Rs 1564.62 crore. The machine tool and Foundry business has improved by 50% to Rs 260.83 crore. OPM slipped by 150 bps to 15.3% and led Operating Profit up by 41% to Rs 278.27 crore. The other income inched up by 31% to Rs 64.99 crore while the depreciation moved up by 9% to Rs 104.11 crore. Resultantly, PBT was up by 59% to Rs 150.56 crore. At segment level, textile machinery segment has reported 70% increase in profit at Rs 164.29 crore and that of machine tool and foundry business has reported 31% increase to Rs 20.69 crore. Finally, flat effective tax rate at 30.6% has made Net Profit up by 59% to Rs 165.98 crore.

Other Information:

The Scrip is hovering at Rs 2041 on BSE