Highlights of the call are:

• LMW has reported faded performance with 17% dip in the net profit at Rs 137.02 crore over 17% increase in the total income from operations at Rs 2072.49 crore for the year ended March 12. OPM slipped 240 bps to 12.2% on the back of pressure from both textile machinery and foundry business.
• Exports grew 28% to Rs 321 crore during the year which includes Rs 73 crore of exports of parts and components sent to LMW China.
• Euro Zone Crisis, slowdown in US economy and also domestic market, high rate of inflation and sharp volatile movement in the cotton prices, withdrawl of export incentives and no word on extension of TUFS scheme; together have hampered growth in the textile industry. Resultantly, the orders inflow and execution of the Textile Engineering division was on a slower pace in FY12. The Order inflow during the year was lower at Rs 975 crore, while the order execution was Rs 1362 crore; taking the outstanding order book at Rs 4216 crore. The company is not confident of great order inflow in FY13 (around Rs 500-600 crore) while only 30% of the current order book is active.
• Textile Machinery business has reported 16% growth in revenues at Rs 1817.95 crore and 2% dip in segment profit at Rs 160.83 crore for FY12. Capacity utilization for this division is 75%
• Machine tool division has reported 23% growth in revenues at Rs 227 crore while that of Foundry revenues grew 30% to Rs 90 crore for FY12. The company has 3 foundries (capacity 48000 MT)' of which 2 cater to the captive consumption and the remaining one serves captive requirements as well as export market. The management noted that that this division will report flat results in FY13.
• The company is also aspiring its presence into Advance Technology business for Aero Space parts and components. As both Technology and Quality parameters are important, it plans to limit its operations in Structural and component parts of engines, in this space.
• The company has added 5 wind mills with capacity of 8.85 MW at capex of Rs 60 crore in FY12; taking wind mill capacity to 36.85 MW. This capacity will be addressing 75-80% of the energy requirement of the company.
• LMW Machinery Limited – Wholly owned subsidiary of the company has clocked revenues of Rs 137 crore and Profit of Rs 9.5 crore for FY12. The capacity of the company here is 0.5 million ring frame spindles.
• LMW China has reported revenues of Rs 158 crore while profit was Rs 93 lakh for FY12.
• With wind mills season commencing (May – December), the electricity shortage is now closing in.