The slide in both –top-line and bottom-line growth- during the first quarter of the current fiscal was not unexpected, say textile machinery manufacturing major Lakshmi Machine Works (LMW) sources. They however perceive that the situation would improve in the coming quarters, as the textile industry is showing some signs of improvement.
The textile machinery manufacturing major’s net profit slipped from Rs 41.14 cr to Rs 31 cr during the first three months of the current fiscal as compared to the corresponding period of the previous year. Its income from operations also took a beating, slipping to Rs 432.99 cr (509.14 cr).
LMW’s Director (Finance) Rajendran told Business Line that the consuming sector (namely the textile mills), passed through difficult times, impacting the performance of the machinery manufacturing unit as well. “There is some amount of demand at present, and we expect things to look up in the coming months, though not to the earlier levels’.
While he did not divulge the order book position, Rajendran maintained that the company received ‘some’ orders during the first quarter.
He also pointed out that only around 30 per cent were ‘active orders’.
LMW, he conceded could not do much on the export front. ‘Last year, the exports were mostly of accessories to China. This year, we are expecting some order of machineries. Discussions are at an advanced stage’, he said.
He said that the Technology Upgradation Fund Scheme would definitely benefit the machinery manufacturig sector.