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.

June 2018 quarter results

For the quarter ended June 2018, it registered a 9% fall in sales to Rs 636.01 crore.

OPM fell 120 basis points to 8.9% which saw OP fall 20% to Rs 56.87 crore.

Other income grew 52% to Rs 32.71 crore and interest cost rose from NIL to Rs 28 lakh.

As depreciation fell 37% to Rs 13.70 crore, PBT grew 7% to Rs 75.60 crore.

EO due to VRS was Rs 3.60 crore against Rs 40 lakh. Thus PBT after EO grew 3% to Rs 72.00 crore.

Tax grew stayed at Rs 22.32 crore against Rs 22.41 crore, after which PAT grew 4% to Rs 49.68 crore.

FY 2018 months results

For FY 2018, it registered a 5% rise in sales to Rs 2558.90 crore.

OPM fell 10 basis points to 10.4% which saw OP rise 4% to Rs 266.33 crore.

Other income grew 20% to Rs 108.28 crore and interest cost rose 77% to Rs 67 lakh.

As depreciation went down 5% to Rs 70.80 crore, PBT grew 12% to Rs 303.15 crore.

EO due to VRS was Rs 4.03 crore against Rs 4.70 crore. Thus PBT after EO grew 12% to Rs 299.12 crore.

Tax grew 16% to Rs 87.70 crore, after which PAT grew 11% to Rs 211.42 crore.

Segment results

During the quarter sales from Textile Machinery Division fell 21% to Rs 478.59 crore and accounted for 72% of sales. PBIT fell 26% to Rs 33.64 crore and accounted for 58% of total.

During the quarter sales from Machine Tool and Foundry Division rose 60% to Rs 177.44 crore and accounted for 27% of sales. PBIT grew 126% to Rs 27.69 crore and accounted for 48% of total.

Performance of the company is closely related to the prospects of textile spinning mills. Governments in India has supported by attractive fiscal policies to boost the setting up of Greenfield Projects. Presence of an ever growing fashion conscious population compels the textile mills to upgrade their production facilities continuously. This is an opportunity for the company as continuous upgradation of manufacturing technology and the ability to provide the complete range of contemporary textile machinery at a competitive price makes the company a natural partner of choice.

The company is strengthening its presence in overseas markets where textile industry is active. This is expected to boost company's earnings potential in the near future. In depth experience gained by the company over the years, along with a committed work force with specialised skill sets would enable it to grab any challenging opportunity.

During the quarter sales from Advanced Technology Center Division jumped 59% to Rs 6.54 crore and accounted for 1% of sales. It reported a loss Rs 3.51 crore against Rs 3.32 crore at PBIT level and accounted for -6% of total.

In FY 2018 sales from Textile Machinery Division fell 2% to Rs 2005.13 crore and accounted for 77% of sales. PBIT rose 6% to Rs 166.90 crore and accounted for 68% of total.

Major opportunities arise from the growth in aerospace, defence, power and power transmission, infrastructure and auto ancillary industries. Also the Government's initiative to stimulate economic growth and plans to boost the share of manufacturing sector to the GDP will help.

Continuous research and development efforts and the ability to bring new variants that match with market requirements enable the company to meet the demand.

In FY 2018 sales from Machine Tools and Foundry Division rose 42% to Rs 542.28 crore and accounted for 21% of sales. PBIT grew 53% to Rs 77.08 crore and accounted for 32% of total.

In FY 2018 sales from Advanced Technology Center Division jumped 58% to Rs 42.62 crore and accounted for 2% of sales. It reported a profit Rs 39 lakh against Rs 9 lakh at PBIT level and accounted for 0% of total.

Growth in air passenger traffic inIindia and in the Asia Pacific region is expected to spur demand for new aircraft and also bring growth to the maintenance, repair and Overhaul segment. Approval for FDI in aviation sector is expected to further strengthen the Indian Civil Aviation market. The Indian Government is expected to make significant investments in airforce modernization over the years which will benefit this division.

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 stock trades at Rs 7780.