While there is some concern about the performance of the spinning industry due to the steep decline in the price of cotton yarn and the industry's resolve to cut production by a third from May 24 till the situation improves, textile machinery manufacturing major Lakshmi Machine Works (LMW) does not see this impact its growth prospects adversely this fiscal.

“There can be some slowdown, but we don't see this impact our business, as most of the projects have been funded.

“Orders amounting to Rs 4,600 crore are pending apart from the considerable orders and enquiries received in the just ended fiscal. This includes both – replacement and project orders,” said the LMW's Director (Finance), Mr R. Rajendran.

“Amongst others, we received an order worth Rs 148 crore from the National Textile Corporation,” he said.

LMW's total income from operations for the fiscal ended March 2011 rose to Rs 1,818.41 crore from Rs 1,169.42 crore during the corresponding period of the previous year.

The revenue from textile machinery division was Rs 1,564.62 crore (Rs 999.82 crore).

Mr Rajendran said Rs 251 crore of the total revenue was from export of textile machinery, including Rs 91 crore to China, where LMW operates a wholly owned subsidiary.

“Exports have improved from Rs 74 crore in 2009-10 to Rs 251 crore in 2010-11,” he said, adding “export prices are slightly higher and better than domestic prices”.

The company's net profit increased from Rs 104.68 crore in 2009-10 to Rs 165.98 crore. Its total expenditure too saw a quantum increase to Rs 1,644.24 crore (Rs 1,068.48 crore).

He said that the input cost (raw material prices) had increased significantly in the last two years, but the company was holding its price since April 2010. The company had also revised the pay for its staff and workers, he added.

“We are working the third shift on a selective basis,” he said in reply to a question.

The company's board has recommended a dividend of Rs 30 a share of Rs 10 each for 2010-11.

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