Coimbatore-based textile machinery manufacturer Lakshmi Machine Works Ltd (LMW) has registered a steep drop in net income and profit in the second quarter over the same period last year.
On a sequential basis, though, it did better in the second quarter than in the first.
According to the unaudited results for the quarter ended September 30, the total income from operations (net) was Rs 469.61 crore, about Rs 102 crore less than the income during the same quarter the previous fiscal, which was Rs 571.58 crore.
Despite the lower cost of material consumed, at Rs 292.37 crore in Q2 (Rs 352.78 crore the previous corresponding quarter), lower employee benefits expenses at Rs 40.99 crore (Rs 48.01 crore) and lower tax expense at Rs 13.75 crore (Rs 23 crore), the net profit fell sharply to Rs 30.64 crore this Q2, compared with Rs 49.23 crore in the same quarter last year.
The EPS (Rs 10 face value) was Rs 27.20 (Rs 43.70).
However, on a sequential basis, LMW put up a better show in Q2 this year, especially in sales, with first quarter sales this year being Rs 424.06 crore. Its profit from operations too, was better in Q2 this year compared to Q1. But a fall in other income (Rs 12.10 crore vs Rs 19.48 crore) appears to have kept the net profit almost flat at Rs 30.64 crore in Q2 (Rs 31 crore in first quarter).
The segment-wise results show a slide in performance of the textile machinery division that accounts for the bulk of LMW’s sales. In Q2 this year, the textile machinery division accounted for sales of Rs 407.09 crore — far less than the Rs 495.07- crore in the same quarter last year. But this was higher on a sequential basis (Rs 368.75 crore in Q1 this year).
The machine tool and foundry divisions too, notched up lower sales in Q2, at Rs 59.33 crore (Rs 87.75 crore same period last year). The aerospace and precision parts segments contributed to a marginal income of Rs 64.97 lakh (Rs 51.09 lakh).
The fall in profit (before interest and tax) of the textile machinery division also was high, at Rs 33.38 crore (Rs 54.96 crore previous corresponding quarter). The machine tool and foundry divisions too, saw a decline in profit at Rs 4.76 crore in Q2 (Rs 12.36 crore).