C B Chandrasekar Chief Financial Officer of the company addressed the call.

Highlights of the call:

For the quarter ended March 2016, it registered 6% rise in sales to Rs 692.64 crore. OPM grew 170 basis points from 11.2% to 12.9% which saw OP grow 22% to Rs 89.02 crore.

PBT grew 17% to Rs 90.67 crore. EO due to VRS was Rs 4.29 crore against Rs 1.84 crore. Thus PBT after EO grew 14% to Rs 86.38 crore. Tax grew 262% to Rs 30.30 crore after which PAT fell 17% to Rs 56.08 crore.

For FY 2016, it registered 6% rise in sales to Rs 2528.28 crore. OPM improved 50 basis points from 12.1% to 12.6% which took OP up 11% to Rs 318.59 crore.

PBT grew 12% to Rs 330.20 crore. EO due to VRS was Rs 4.98 crore against Rs 9.49 crore. Thus PBT after EO grew 14% to Rs 328.21 crore. Tax grew 34% to Rs 108.30 crore after which PAT went up 6% to Rs 219.92 crore.

During the quarter sales from Textile Machinery Division grew 10% to Rs 627.61 crore and accounted for 89% of sales. PBIT grew 38% to Rs 70.60 crore and accounted for 96% of total.

For FY 2016, sales grew 7% to Rs 2272.23 crore and accounted for 89% of total. PBIT grew 22% to Rs 250.23 crore and accounted for 94% of total.

During the quarter sales from Machine Tool and Foundry Division fell 20% to Rs 69.49 crore and accounted for 10% of sales. PBIT fell 4% to Rs 5.36 crore and accounted for 7% of total.

For FY 2016, sales fell 1% to Rs 267.190 crore and accounted for 10% of total. PBIT improved 7% to Rs 22.48 crore and accounted for 8% of total.

During the quarter sales from Advanced Technology Center Division fell 35% to Rs 5.88 crore and accounted for 1% of sales. Loss at PBIT level stood at Rs 2.07 crore against a profit of Rs 1.33 crore and accounted for -3% of total.

For FY 2016, sales from this division grew 5% to Rs 23.56 crore and accounted for 1% of total. Loss at the PBIT level fell 15% to Rs 7.11 crore and accounted for -3% of total.

During the quarter PBIT margins of Textile Machinery Division grew from 9.0% to 11.2% while the same during the FY 2016 grew from 9.6% to 11.0%.

During the quarter PBIT margins of Machine Tools and Foundry Division grew from 6.4% to 7.7% while the same during the FY grew from 7.7% to 8.4%.

During the quarter PBIT margins of Advanced Technology Center fell from 14.6% to -35.3% while the same during FY improved from -37.0% to -30.2%.

Exports for FY 2016 stood at Rs 551 crore (including foundery exports) and it accounted for 22% of sales.

Order inflow for Textile Machinery Division: opening order book was Rs 2529 crore. It received order of Rs 1318 crore in FY 2016 and it executed orders worth Rs 1434 crore. So closing order book is Rs 2413 crore

Export opening order book was Rs 37 crore in FY 2016. It received Rs 648 crore. It executed orders worth Rs 453 crore. Thus the closing export order book stood at Rs 232 crore. The company takes only confirmed LC order for export order book record.

It exports to Bangladesh, Vietnam, Sri Lanka, etc.

Machine tools division had order book opening balance stood at Rs 105 crore. it received orders worth Rs 144 crore. it executed 189 crore. Thus the closing order stood at Rs 60 crore.

Other income is less because it did not sell power. Sale of power last year was rs 5 crore and in FY 2016 time it was NIL.

Investment in Sri Lanka of Rs 4 crore was written off.

China sales increased from Rs 134 to Rs 160 crore but the profitability fell due to reduction in price realization.

Machine exports to India were Rs 453 crore, Spares exports were Rs 17 crore. Exports from China were Rs 33 crore.

Spare sales stands at Rs 234 crore against Rs 201 crore.

Order inflow in domestic textile machinery business was Rs 214 crore. It executed Rs 385 crore.

Export Order inflow in domestic textile machinery business were Rs 110 crore. it executed Rs 145 crore.

Order inflow in domestic machine Tool division business was Rs 35 crore. It executed Rs 47 crore.

In FY 2016 around 60% was active order and going ahead same trend will continue.

Whenever National Textile Policy is implemented there will be some kind of improvement in the textile segment. Also advance TUF given for other than spinning segment will also positively impact the company.

In textile segment growth won't be extraordinary but organic growth of 2-3% will be there.

Machine tool and foundry division will grow well.

Advanced Technology Center is expected to breakeven in FY 2017.

Export of textile machinery as well as spares is expected to grow well.

The company has started introducing new products in the market.

The company has not taken price rise in the last few years. Right now lots of competition are there. LMW does not want to lose any market share and so it does not want to increase price. The company will increase price only if it has value added products.

Premium on its products compared to European countries have fallen from 15% to 12%.

For its real estate business the company has received some amount from Shoba Developers. Sample flat is ready. This year the company will get substantial amount from this.

Textile Machine segment in last 10 years has been growing at 5-7%. Total global size is Rs 20000 core. The company has roughly 11-12% market share of this global market