Lakshmi Machine
Lakshmi Machine Works (LMW) posted a disappointing set of numbers for Q2FY15. Lower sales, exceptional expense on account of VRS led to the company ending the quarter with a net profit at Rs.47 crore, down 10% (YoY) and flat sequentially. Net sales came in at Rs.569 crore, up 5% (YoY). The flagship segment, which is Tools Machinery, did not do well with flat revenue growth and EBIT falling 15%. Machinery Tool & Foundry division did well with revenue up 33% and EBIT was up 4 times.
Its Advanced Technology Center continues to post losses and QoQ, the loss remains status quo at Rs.4 crore though YoY, it has risen from Rs.2 crore. The company’s strategy to focus on customer service and supply of spare parts and the export market seems to be paying off. The company, as at 30th Sept 2014, is sitting on a reserves of Rs.1093 crore and a cash balance of Rs.876 crore and it is virtually debt free. Equity capital is small at Rs.11.27 crore, with promoters stake at 71.66%