Lakshmi Machine

Throughout FY13, the company had to face various problems, mainly on the erratic power supply side and poor demand and this took a toll on the overall performance of the company. It ended FY13, with a  consolidated 7% fall in net profit at Rs.129 crore but PBT fell more sharply, down 19% at Rs.184 crore. The recoup in the PAT was thanks to the 39% drop in tax outgo. The company has stated that the poor performance can be blamed on the Advanced Technology Centre, wherein the company has invested Rs.65 crore, in anticipation of growth in the aerospace sector. But the Centre is in losses mainly on account of high depreciation outgo and this is dragging down the profits of the company too. This Centre is expected to breakeven in the next one or 2 years.  Q4FY13 performance was much better than the rest of the three quarters, with net profit coming at Rs.28 crore, up 33% (QoQ) and YoY, it rose over 4 times. The hefty Rs.30 crore component of other income and no interest outgo also helped.

Plant capacity utilization remains at around 60-65%. But the silver lining is that unlike in the past where orders had simply stopped coming in, at least orders are now coming. Its order book position as on March-end stood at Rs 3,700 crore and most of this is executable in the current fiscal. Though input costs have risen, given the competition and the general lackluster environment, the company is sitting tight on prices but one wonders, how can it will be able to hold the prices. The company, at end of FY13 , was sitting on reserves of Rs.945 crore and had a cash balance of Rs.769 crore and id debt free. . Fundamentally very sound but is a victim of circumstances.