Capitaline

Results 28-Oct-21

Analysis

Lakshmi Machine Works

Sales up 103%, net up 530%

Consolidated net sales (including other operating income) of Lakshmi Machine Works has increased 102.62% to Rs 803.07 crore. Operating profit margin has jumped from 3.50% to 8.22%, leading to 376.14% rise in operating profit to Rs 66.04 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 60.33% to 63.81%. Employee cost decreased from 13.19% to 9.76%. Other expenses fell from 22.93% to 18.22%. Other income fell 5.15% to Rs 14.54 crore. PBIDT rose 175.96% to Rs 80.58 crore. PBDT rose 176.02% to Rs 80.57 crore. Provision for depreciation rose 5.81% to Rs 14.76 crore. Profit before tax grew 331.82% to Rs 65.81 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 22.28 crore, compared to Rs 1.65 crore. Effective tax rate was 33.86% compared to 19.28%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 529.96% to Rs 43.53 crore.

Upside in revenue was driven by strong growth in revenue of Textile machinery and machine tools division of the company. While the revenue of textile machinery was up by 109% to Rs 604.63 crore (73% of sales) that of machine tools was up by 99% to Rs 212.57 crore. The segment revenue of ATC was up 2% to Rs 9.21 crore.

EBIT for the quarter was a profit of Rs 50.76 crore compared to a loss of Rs 7.79 crore in corresponding previous period. Textile machinery that reported a loss of Rs 6.73 crore in corresponding previous period has reported a profit of Rs 33.56 crore there by driving the EBIT for the quarter. The segment profit of machine tools was up by strong 341% to Rs 23.59 crore. The segment profit of ATC was a loss of Rs 6.39 crore down marginally from a loss of Rs 6.41 crore in corresponding previous period.

Half-yearly performance

Consolidated net sales has increased 123.09% to Rs 1260.7 crore. Operating profit margin (OPM) has turned from negative 2.51% to positive 5.81%, Operating profit for the quarter stood at Rs 73.21 crore compared to loss of Rs 14.21 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 58.08% to 63.32%. Employee cost decreased from 17.86% to 11.38%. Other expenses fell from 26.69% to 19.58%. Other income fell 4.22% to Rs 32.68 crore. PBIDT rose 431.84% to Rs 105.89 crore. PBDT rose 432.06% to Rs 105.88 crore. Provision for depreciation rose 4.76% to Rs 29.08 crore. Profit before tax reported profit of Rs 76.80 crore compared to loss of Rs 7.86 crore. Share of profit/loss were nil in both the periods. Extraordinary items were decreased to Rs -17.17 crore. Provision for tax was debit of Rs 25.68 crore, compared to credit of Rs 2.16 crore. Effective tax rate was 43.07% compared to 12.80%. Minority interest was nil in both the periods.

Other developments

Equity capital stood at Rs 10.68 crore as of 30 September 2021 to Rs 10.68 crore as of 30 September 2020. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 31.13% as of 30 September 2021 ,compared to 31.11% as of 30 September 2020 .

Cash flow from operating activities increased to Rs 103.03 crore for YTD ended September 2021 from Rs 62.35 crore for YTD ended September 2020. Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 24.00 crore, compared to Rs 11.17 crore during the YTD ended September 2020.

Lakshmi Machine Works: Consolidated Results
	2109 (3)	2009 (3)	Var. (%)	2109 (6)	2009 (6)	Var.(%)	2103 (12)	2003 (12)	Var.(%)
Sales	803.07	396.34	103	1260.70	565.12	123	1727.38	1574.50	10
OPM (%)	8.2	3.5	135	5.8	-2.5		4.1	0.7
OP	66.04	13.87	376	73.22	-14.20	LP	70.43	11.15	532
Other inc.	14.54	15.33	-5	32.68	34.12	-4	78.73	94.00	-16
PBIDT	80.58	29.20	176	105.90	19.92	432	149.16	105.14	42
Interest	0.01	0.01	-6	0.01	0.01		0.08	0.61	-87
PBDT	80.56	29.19	176	105.88	19.90	432	149.08	104.54	43
Dep.	14.76	13.95	6	29.08	27.76	5	55.63	55.26	1
PBT	65.81	15.24	332	76.80	-7.86	LP	93.45	49.28	90
EO Income	0.00	-6.68	-100	-17.17	-9.01	91	-22.12	-2.10	954
PBT after EO	65.81	8.56	669	59.63	-16.87	LP	71.33	47.18	51
Current Tax	22.28	1.65	1251	25.68	-2.16	LP	26.74	19.41	38
PAT	43.53	6.91	530	33.95	-14.71	LP	44.60	27.77	61
EPS (Rs)*	#	#		#	#		54.7	27.2
^ 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	% to total	2109 (3)	2009 (3)	Var. (%)	% to total	2109 (6)	2009 (6)	Var. (%)	% to total	2103 (12)	2003 (12)	Var. (%)
Textile Machinery Division	73	604.63	289.84	109	72	932.68	425.98	119	69	1223.62	1194.47	2
Machine Tools & Foundry Division	26	212.57	106.88	99	27	347.61	138.60	151	30	526.92	401.56	31
Advanced Technology Centre	1	9.21	9.05	2	1	17.35	14.98	16	2	28.88	33.26	-13
Total	100	826.41	405.77	104	100	1297.65	579.57	124	100	1779.41	1629.29	9
Less Inter segment revenue		21.02	6.96			32.92	10.86			41.33	32.31
Net sales		805.39	398.82	102		1264.73	568.70	122		1738.08	1596.98	9
PBIT
Textile Machinery Division	66	33.56	-6.73	-599	53	21.93	-21.11	-204	57	13.99	-8.11	-273
Machine Tools & Foundry Division	46	23.59	5.35	341	78	32.10	-7.74	-515	149	36.37	27.86	31
Advanced Technology Centre	-13	-6.39	-6.41	0	-31	-12.88	-12.20	6	-106	-25.87	-16.43	57
PBT before tax and interest	100	50.76	-7.79	-751	100	41.15	-41.05	-200	100	24.49	3.32	638
Add: Other unallocable income		15.05	16.35	-8		18.48	24.18	-24		46.84	43.86	7
PBT		65.81	8.56	669		59.63	-16.87	-454		71.33	47.18	51
Figures in Rs crore
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit; PL: Profit to Loss

Segment Margin
	2109 (3)	2009 (3)	Change (in bps)	2109 (6)	2009 (6)	Change (in bps)	2103 (12)	2003 (12)	Var. (%)
Textile Machinery Division	5.6	-2.3	787	2.4	-5.0	731	1.1	-0.7	182
Machine Tools & Foundry Division	11.1	5.0	609	9.2	-5.6	1482	6.9	6.9	-3
Advanced Technology Centre	-69.4	-70.8	142	-74.2	-81.4	720	-89.6	-49.4	####

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