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 2016 quarter results

For the quarter ended December 2016, it registered an 18% fall in sales to Rs 582.03 crore.

OPM fell 140 basis points from 13.1% to 11.7% which saw OP fall 27% to Rs 68.10 crore.

Other income grew 31% to Rs 27.06 crore and interest cost fell 75% to Rs 6 lakh. .

As depreciation fell 11% to Rs 15.65 crore, PBT fell 17% to Rs 79.45 crore.

EO due to VRS was Rs 4.07 crore against Rs 11 lakh. Thus PBT after EO fell 21% to Rs 75.38 crore.

Tax fell 20% to Rs 24.12 crore, after which PAT fell 22% to Rs 51.26 crore.

Nine months results

For the nine months ended December 2016, it registered 14% fall in sales to Rs 1720.30 crore. OPM fell 190 basis points from 11.5% to 9.6% which saw OP fall 28% to Rs 164.65 crore.

Other income fell 4% to Rs 70.69 crore and interest cost fell 8% to Rs 32 lakh. As depreciation fell 16% to Rs 50.66 crore, PBT fell 24% to Rs 184.35 crore.

EO due to VRS was Rs 4.48 crore against Rs 69 lakh. Thus PBT after EO fell 26% to Rs 179.88 crore. Tax fell 26% to Rs 57.56 crore, after which PAT fell 25% to Rs 122.32 crore.

Segment results

During the quarter sales from Textile Machinery Division fell 4% to Rs 508.34 crore and accounted for 83% of sales. PBIT fell 40% to Rs 45.75 crore and accounted for 75% of total.

During the quarter sales from Machine Tool and Foundry Division jumped 19% to Rs 98.80 crore and accounted for 16% of sales. PBIT grew 141% to Rs 16.13 crore and accounted for 27% of total.

During the quarter sales from Advanced Technology Center Division fell 13% to Rs 5.57 crore and accounted for 1% of sales. Loss at PBIT level stood at Rs 1.03 crore against Rs 85 lakh and accounted for -2% of total.

During the nine months sales from Textile Machinery Division fell 18% to Rs 1462.15 crore and accounted for 82% of sales. PBIT fell 38% to Rs 110.59 crore and accounted for 79% of total.

During the nine months sales from Machine Tool and Foundry Division jumped 35% to Rs 299.27 crore and accounted for 17% of sales. PBIT grew 85% to Rs 32.72 crore and accounted for 23% of total.

During the nine months sales from Advanced Technology Center Division fell 8% to Rs 16.85 crore and accounted for 1% of sales. Loss at PBIT level stood fell 33% to Rs 3.21 crore and accounted for -2% of total.

During the quarter PBIT margins of Textile Machinery Division fell from 14.5% to 9.0%.

PBIT margins of Machine Tools and Foundry Division grew from 8.1% to 16.3%.

PBIT margins of Advanced Technology Center fell from -13.3% to -18.5%.

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.

The company has approved the buyback of 3,11,000 equity shares of the company at a price not exceeding Rs 4450 per share amounting to 2.76% of the paid up capital involving an amount of Rs 138.40 crore.

Valuation

The share price trades at Rs 3837.