LMW hosted a conference call on Oct 29, 2024. In the conference call the company was represented by Senthil, CFO of the company.

Key takeaways of the call

Textile Machine division order book currently stands at Rs 3300 crore of which active orders are Rs 2500 crore.  LMW China order book is Rs 22 crore and the order book of UAE based LMW Global FZE is currently at Rs 280 crore.

The Board of Directors on Oct 28, 2024 have approved the proposal for the transfer of equity shares/equity interest held by the Company in its wholly owned subsidiaries viz. LMW Global FZE, UAE and LMW Textile Machinery (Suzhou) Co Ltd, China to its other wholly owned subsidiary viz. LMW Holding Limited, UAE. Consequent to the aforementioned transfer of shares, LMW Global FZE, UAE and LMW Textile Machinery (Suzhou) Co Ltd, China will become wholly owned subsidiaries of LMW Holding Limited and step-down subsidiaries of LMW Limited.

TMD Revenue mix in terms of Domestic: Exports:Spare parts was 71%, 7% & 22% respectively. 

The company is following five day of working per week for TMD in Q2FY25 and this is expect to continue during the current year.

Cap utilisation of TMD stands at 45-50%, this trend is likely to continue for current fiscal. This level to continue and depends based on order inflow.

Last 4 quarter challenges in terms of profitability for customers and off-take of yarn especially that of synthetic side. However with respect to order booking, the last 2 quarters was better than Q4FY24. Order booking however is less than what the company is executing thus replacement of order book is not sufficiently happening. The Gujarat textile policy is very positive for the company, the company expects the results of this to come in from a quarter from now i.e. Q4FY25.  Turkey is also slowly coming back and materialise in order inflow in next couple of quarters.  

LMW global clocked revenue of Rs 49 crore in H1FY25 vs. Rs 148 crore in H1fy23.  LMW China clocked revenue of Rs 17 crore in H1FY25 vs. Rs 11 crore a year ago 

Machine tools division: of the STO of MTD for Q2FY25 about 15% is related to foundry business segment and balance towards machine tools.

The prospects of engineering business is strong.