Lakshmi Machine

This Coimbatore based textile company, on a YoY, had a dismal performance but sequentially, it was flat. On net revenue of Rs.459 crore, down 18% (YoY), it posted a net profit at Rs.31 crore, down 37%. The fall would have been sharper but for the lower cost of raw material, lower employee cost and even lower tax outgo. In terms of segment, textile machinery division which accounted for 89% of its net revenue, was down 18% on a YoY, but QoQ, rose 10%. The machinery tool and foundry divisions too had lower topline and EBIT while the losses from its aerospace and precision parts segments only grew.

Its order inflow during Q2FY13  was at Rs.390 crore compared to Rs.100 crore in Q1Fy13, which is the only optimistic outlook for the company at the moment. Its active orders in total order book stood at 30%. Though order book was good, lower execution is what led to the lower topline and this can be blamed to a large extent on the power cuts in Tamil Nadu. Looking ahead, the power woe continues in Tamil Nadu and this could impact order inflow  and execution in coming months. Thus at the moment, earnings look subdued in H2FY13. The company, as at 30th Sept 2012, is sitting on a reserves of Rs.949 crore and has a cash balance of Rs.678 crore. Debt is around Rs.150 crore.