Lakshmi Machine Works

Poor show across the board

May 26, 2020 10:05 IST capital market

Lakshmi Machine Works (LMW) registered 34% fall in its consolidated sales to Rs 386.05 crore for the quarter ended March 2020. At operating level it was an operating loss of Rs 6.72 crore (against a profit of Rs 31.90 crore in corresponding previous period) as operating profit margin turn negative to 1.7%. With other income stand lower by 12% to Rs 26.08 crore, the PBIDT was down by 68% to Rs 19.37 crore. After accounting for lower interest and higher depreciation, the PBT was down by 89% to Rs 5.64 crore. With EO Expense stand lower by 18% to Rs 0.05 crore the PBT after EO was down by 89% to Rs 5.59 crore. With taxation stand lower by 77% to Rs 3.71 crore, the PAT was down by 94% to Rs 1.88 crore.
  • Downside in revenue is largely due to sharp fall in revenue of all three business segments of the company. The segment revenue of textile machinery division (TMD) was down by 24% to Rs 306.36 crore (or 76% of sales). Indian spinning and knitting mills are undergoing challenging times and that reflects in the numbers of the company. Moreover the spread of Coronovirus on peak quarter is also not good for the company. Similarly the sales of machine tools & foundry (MTF) division was down by 52% to Rs 88.02 crore (or 22% of sales). On the other hand the segment revenue of Advanced Technology Centre (ATC) was down by 15% to Rs 8.53 crore (or 2% of sales).
  • PBIT was a loss of Rs 2.28 crore compared to a profit of Rs 36.12 crore in corresponding previous period. Loss at EBIT was largely due to segment loss reported by ATC segment as well as lower profit from both TMD and MTF. The core TMD division turned in a profit of Rs 1.20 crore, a sharp fall of 94% hit by lower sales and 470 bps fall in segment margin to 0.4%. Similarly the segment profit of MTF was down by 85% to Rs 2.95 crore hit by both lower sales as well as fall in margin. Segment margin of MTF declined by 760 bps to 3.3%. However ATC segment, which is a not yet a mature business for the company, registered a segment loss of Rs 6.43 crore (up by 45% from a loss of Rs 4.44 crore).

Yearly performance

Consolidated sales for the period was down by 42% to Rs 1574.50 crore and the operating profit was down by 96% to Rs 11.15 crore hit by lower sales and 940 bps fall in OPM to 0.7%. The PBT before EO was down by 85% to Rs 49.28 crore after accounting for lower OI, lower interest and flat depreciation. The EO Exp was down by 94% to Rs 2.10 crore. Thus the PBT after EO was down by 83% to Rs 47.18 crore. The taxation was lower by 80% to Rs 19.41 crore with PAT being down by 85% to Rs 27.77 crore.

Other developments

The Board has recommended a final dividend of Rs 10 per share (of the face value of Rs 10 each) for the year 2019-20 subject to the approval of the shareholders in Annual General Meeting.

?Lakshmi Machine Works: Consolidated Results

 

2003 (3) 1903 (3) Var.(%) 2003 (12) 1903 (12) Var.(%)
Sales 386.05 581.06 -34 1574.50 2711.77 -42
OPM (%) -1.7 5.5 0.7 10.1
OP -6.72 31.90 PL 11.15 273.85 -96
Other inc. 26.08 29.59 -12 94.00 102.43 -8
PBIDT 19.37 61.49 -68 105.14 376.28 -72
Interest 0.09 0.28 -69 0.61 1.17 -48
PBDT 19.28 61.21 -68 104.54 375.12 -72
Dep. 13.64 11.65 17 55.26 55.35 0
PBT 5.64 49.56 -89 49.28 319.76 -85
EO -0.05 -0.07 -18 -2.10 -37.17 -94
PBT after EO 5.59 49.49 -89 47.18 282.59 -83
Current Tax 3.71 15.96 -77 19.41 97.21 -80
PAT 1.88 33.53 -94 27.77 185.38 -85
EPS (Rs)* # # 27.2 196.4
^ EPS is on current equity of Rs 10.6830 crore, Face value of Rs 10
# EPS is not annualised due to seasonality of business
Figures in Rs crore
Source: Capitaline Corporate Database

LMW : Consolidated Segment Results

 

Sales 2003 (3) 1903 (3) Var. (%) % to total 2003 (12) 1903 (12) Var. (%) % to total
Textile Machinery Division 306.36 402.94 -24 76 1194.47 1988.19 -40 73
Machine Tools & Foundry Division 88.02 182.02 -52 22 401.56 770.14 -48 25
Advanced Technology Centre 8.53 10.09 -15 2 33.26 34.57 -4 2
Total 402.91 595.04 -32 100 1629.29 2792.90 -42 100
Less Inter segment revenue 9.29 7.55 32.31 48.54
Net sales 393.63 587.49 -33 1596.98 2744.36 -42
PBIT
Textile Machinery Division 1.20 20.66 -94 -53 -8.11 147.83 PL -244
Machine Tools & Foundry Division 2.95 19.91 -85 -129 27.86 108.18 -74 839
Advanced Technology Centre -6.43 -4.44 45 282 -16.43 -14.28 15 -495
PBT before tax and interest -2.28 36.12 -106 100 3.32 241.74 -99 100
Add: Other unallocable income 7.86 13.37 -41 43.86 40.86 7
PBT 5.59 49.49 -89 47.18 282.59 -83
Figures in Rs crore
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit; PL: Profit to Loss

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