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.

December 2015 quarter results

For the quarter ended December 2015, it registered 15% rise in sales to Rs 651.63 crore.

OPM grew 140 basis points from 12.7% to 14.1% which saw OP grow 28% to Rs 91.82 crore.

Other income fell 18% to Rs 20.82 crore and interest cost fell 3% to Rs 22 lakh.

As depreciation fell 31% to Rs 17.68 crore, PBT grew 33% to Rs 94.75 crore.

EO due to VRS was Rs 11 lakh against Rs 17 lakh. Thus PBT after EO grew 33% to Rs 94.63 crore.

Tax grew 18% to Rs 31.14 crore after which PAT jumped 42% to Rs 63.49 crore.

Nine months results

For the nine months ended December 2015, it registered 6% rise in sales to Rs 1835.64 crore.

OPM improved 10 basis points from 12.4% to 12.5% which saw OP at Rs 229.57 crore, up 7%..

Other income fell 7% to Rs 73.48 crore and interest cost fell 41% to Rs 35 lakh.

As depreciation fell 18% to Rs 60.18 crore, PBT grew 10% to Rs 242.35 crore.

EO due to VRS was Rs 69 lakh against Rs 7.65 crore. Thus PBT after EO grew 14% to Rs 241.83 crore.

Tax grew 8% to Rs 78.00 crore after which PAT went up 17% to Rs 163.83 crore.

Textile Machinery division reports sharp growth

During the quarter sales from Textile Machinery Division grew 12% to Rs 578.74 crore and accounted for 88% of sales. PBIT grew 51% to Rs 77.02 crore and accounted for 94% of total.

For the nine months, sales grew 5% to Rs 1644.62 crore and accounted for 88% of total. PBIT grew 17% to Rs 179.63 crore and accounted for 94% of total.

During the quarter sales from Machine Tool and Foundry Division jumped 31% to Rs 73.88 crore and accounted for 11% of sales. PBIT grew 50% to Rs 6.11 crore and accounted for 7% of total.

For the nine months, sales grew 8% to Rs 197.70 crore and accounted for 11% of total. PBIT improved 11% to Rs 17.13 crore and accounted for 9% of total.

During the quarter sales from Advanced Technology Center Division fell 1% to Rs 5.82 crore and accounted for 1% of sales. Loss at PBIT level stood at Rs 1.17 crore against a loss of Rs 1.67 crore and accounted for -1% of total.

For the nine months, sales from this division grew 31% to Rs 17.68 crore and accounted for 1% of total. Loss at the PBIT level fell 48% to Rs 5.03 crore and accounted for -3% of total.

During the quarter PBIT margins of Textile Machinery Division grew from 9.9% to 13.3% while the same during the nine months grew from 9.8% to 10.9%.

During the quarter PBIT margins of Machine Tools and Foundry Division grew from 7.2% to 8.3% while the same during the nine months grew from 8.4% to 8.7%.

During the quarter PBIT margins of Advanced Technology Center improved from -28.5% to -20.1% while the same during the nine months improved from -71.9% to -28.5%.

Change in depreciation policy

The company has componentized its fixed assets and has separately assessed the life of major components forming part of the main asset and depreciation charged for the quarter/nine months is on this basis. The depreciation for the nine months includes Rs 16.20 crore and for the quarter includes Rs 5.40 crore attributable to componentization.

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 share price trades at Rs 3445.