The orderbook position at the end of December 2010 stood at Rs 4100 crore, of which Rs 2300 crore of fresh orders were added in the 9MFY10. The execution period of the order book is 12-14 months. For the 9MFY11, the Chinese subsidiary of the company has reported turnover of Rs 65 crore against Rs 4 crore in the corresponding previous year.

Quarterly Performance:

For the quarter ended December 2010, LMW has reported strong 47% jump in the topline at Rs 481.65 crore mainly on the back of 46% increase in the revenues from textile machinery division which also contributes 86% of the total revenues. The revenues from Machine tool and foundry segment have also improved by 49% to Rs 69.51 crore in the quarter under review. With 12% rise in the other income from operations at Rs 9.23 crore, the total income from operations was up by 46% to Rs 490.89 crore.

OPM declined by 350 bps on the back of spike in the raw material cost. The company has not passed on increase in the raw material cost in both the segments since April 2010. The consumption cost as % of sales net of stock adjustments have zoomed up by 770 bps to 59.9% in the quarter under review. On the other hand, the segment margins of Textile machinery segment has slipped by 40 bps to 10.7% while that of Machine tools and foundry has dipped by 300 bps to 9.1% respectively. Thus the growth in operating profit was curtailed by 19% to Rs 75.61 crore.

The Other income was up by 74% to Rs 17.54 crore and led PBIDT up by 27% to Rs 93.15 crore. As a debt free company, the company enjoys no interest cost while the depreciation declined by 6% to Rs 26.33 crore and led PBT up by 47% to Rs 66.83 crore. At the segment level, Textile machinery segment has reported 40% increase in the profit at Rs 45.30 crore and constituted 88% of the segment profit. On the other hand, Machinery tools segment has reported 12% increase in the profits at Rs 6.31 crore. Finally, after accounting 150 bps dip in effective tax rate to 31.4%, Net Profit was up by 50% to Rs 45.83 crore.

YTD performance:

For the nine months ended December 2010, LMW has reported 59% increase in the total income from operations at Rs 806.89 crore, driven by 61% jump in the revenues from textile machinery segment at Rs 1112.39 crore. The OPM was under pressure and slipped by 90 bps to 16.3% and limited growth in the operating profit by 49% to Rs 209.07 crore. Other income inched up by 20% to Rs 46.43 crore while depreciation leaped up by 11% to Rs 75.73 crore, resulting PBT up by 62% to Rs 179.78 crore. Further, 57% increase in the taxation at Rs 58 crore led Net Profit up by 65% to Rs 121.78 crore.

Other information:

The Scrip is hovering at Rs 2150 on BSE