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.

March 2016 quarter results

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.

Other income fell 10% to Rs 24.89 crore and interest cost jumped from Rs 4 lakh to Rs 52 lakh.

As depreciation fell 3% to Rs 22.71 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.

FY 2016 results

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.

Other income fell 7% to Rs 98.37 crore and interest cost grew 37% to Rs 87 lakh.

As depreciation fell 14% to Rs 82.89 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.

Textile Machinery division reports sharp growth

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%.

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. Consequently, the depreciation for the FY is higher by 18.23 lakh and for the quarter it is higher by 2.02 crore.

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 3409.