Lakshmi Machine Works

Fall in other income drags down net profit

Oct 27, 2020 10:10 IST capital market

Lakshmi Machine Works (LMW) registered 3% fall in its consolidated sales to Rs 396.34 crore for the quarter ended Sep 2020. But with 150 bps expansion in operating profit margin (OPM), the operating profit jumped up by 56% to Rs 13.87 crore. However with other income down by 36% to Rs 15.33 crore, the PBIDT was down by 11% to Rs 2920 crore. After accounting for lower interest cost and lower depreciation, the PBT was down by 18% to Rs 15.24 crore. As EO being an expense of Rs 6.68 crore against nil in corresponding previous period, the PBT after EO was down by 54% to Rs 8.56 core. With taxation stand lower by 74% to Rs 1.65 crore, the PAT was down by 43% to Rs 6.91 crore.
  • Downside in revenue is largely due to fall in revenue of Textile Machinery Division(TMD). The segment revenue of TMD was down by 6% to Rs 289.94 crore. However the segment revenue of Machine Tools & Foundry Division (MTFD) was up by 2% (to Rs 106.88 crore) and that of Advanced Technology Centre (ATC) was up by 4% to Rs 9.05 crore.
  • PBIT was a loss of Rs 7.80 crore compared to a profit of Rs 4.30 crore in corresponding previous period. Loss at EBIT was largely due to segment loss reported by both TMD and ATC segments. The segment loss of TMD was Rs 6.73 crore compared to a loss of Rs 1.39 crore in the corresponding previous period. Similarly the segment loss of ATC was Rs 6.41 crore compared to a loss of Rs 2.68 crore in the corresponding previous period. However the segment profit of MTFD was down by 36% to Rs 5.35 crore.

Half Yearly performance

Consolidated sales for the period was down by 35% to Rs 565.12 crore. However on lower sales, unable to recover fixed cost, the operating loss was Rs 14.20 crore (against a profit of Rs 16.80 crore in corresponding previous period) with OPM being -2.5% compared +1.9% in corresponding previous period. Other income was down by 25% to Rs 34.12 crore and thus the PBIDT was down by 68% to Rs 19.92 crore. The PBT was a loss of Rs 7.86 crore compared to a profit of Rs 34.13 crore. The EO expens was RS 9.01 crore against nil in corresponding previous period. Thus the PBT after EO was a loss of Rs 16.87 crore compared to a profit of Rs 34.13 crore in the corresponding previous period. With taxation being a writeback of Rs 2.16 crore (compared to a provision of Rs 11.50 crore) the PAT was a loss of Rs 14.71 crore compared to a profit of Rs 22.63 crore in the corresponding previous period.

Lakshmi Machine Works: Consolidated Results

 

2009 (3) 1909 (3) Var.(%) 2009 (6) 1909 (6) Var.(%) 2003 (12) 1903 (12) Var.(%)
Sales 396.34 409.34 -3 565.12 868.12 -35 1574.50 2711.77 -42
OPM (%) 3.5 2.2 -2.5 1.9 0.7 10.1
OP 13.87 8.90 56 -14.20 16.80 PL 11.15 273.85 -96
Other inc. 15.33 23.86 -36 34.12 45.63 -25 94.00 102.43 -8
PBIDT 29.20 32.76 -11 19.92 62.43 -68 105.14 376.28 -72
Interest 0.01 0.11 -87 0.01 0.51 -97 0.61 1.17 -48
PBDT 29.19 32.65 -11 19.90 61.92 -68 104.54 375.12 -72
Dep. 13.95 14.11 -1 27.76 27.79 0 55.26 55.35 0
PBT 15.24 18.54 -18 -7.86 34.13 PL 49.28 319.76 -85
EO Income -6.68 0.00 PL -9.01 0.00 PL -2.10 -37.17 -94
PBT after EO 8.56 18.54 -54 -16.87 34.13 PL 47.18 282.59 -83
Current Tax 1.65 6.38 -74 -2.16 11.50 LP 19.41 97.21 -80
PAT 6.91 12.16 -43 -14.71 22.63 PL 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 2009 (3) 1909 (3) Var. (%) % to total 2009 (6) 1909 (6) Var. (%) % to total 2003 (12) 1903 (12) Var. (%) % to total
Textile Machinery Division 289.84 308.92 -6 71 425.98 653.85 -35 74 1194.47 1988.19 -40 73
Machine Tools & Foundry Division 106.88 104.77 2 26 138.60 220.63 -37 24 401.56 770.14 -48 25
Advanced Technology Centre 9.05 8.74 4 2 14.98 16.28 -8 3 33.26 34.57 -4 2
Total 405.77 422.42 -4 100 579.57 890.77 -35 100 1629.29 2792.90 -42 100
Less Inter segment revenue 6.96 7.82 10.86 13.32 32.31 48.54
Net sales 398.82 414.60 -4 568.70 877.45 -35 1596.98 2744.36 -42
PBIT
Textile Machinery Division -6.73 -1.39 383 86 -21.11 -1.51 1294 51 -8.11 147.83 -105 -244
Machine Tools & Foundry Division 5.35 8.37 -36 -69 -7.74 20.37 -138 19 27.86 108.18 -74 839
Advanced Technology Centre -6.41 -2.68 139 82 -12.20 -7.10 72 30 -16.43 -14.28 15 -495
PBT before tax and interest -7.80 4.30 -281 100 -41.05 11.76 -449 100 3.32 241.74 -99 100
Add: Other unallocable income 16.35 14.24 15 24.18 22.38 8 43.86 40.86 7
PBT 8.55 18.54 -54 -16.87 34.13 -149 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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