Lakshmi Electrical Control Systems Reports 31% Drop in Q1 Profit, Electricals Segment Remains Strong

Lakshmi Electrical Control Systems Limited (LECS) has reported a 31% year-on-year decline in net profit for the first quarter ended June 30, 2025. The company's financial results, approved by the Board of Directors on July 31, 2025, reveal a mixed performance across its business segments.

Financial Highlights

• Net profit decreased to ₹57.04 lakhs from ₹82.70 lakhs in the same quarter last year
• Revenue from operations increased marginally to ₹5,239.49 lakhs from ₹5,141.93 lakhs
• Basic earnings per share (EPS) stood at ₹2.32, down from ₹3.36 in the previous year

Segment Performance

LECS operates across three segments, each showing varied results:

The Electricals segment, which contributes the lion's share of revenue, demonstrated strong profitability. However, the Plastics segment reported a significant loss, impacting the overall performance.

Other Financial Metrics

• Total comprehensive income reached ₹735.56 lakhs, boosted by other comprehensive income of ₹678.52 lakhs
• Employee benefits expense increased to ₹753.25 lakhs from ₹670.96 lakhs in the same quarter last year
• Finance costs remained relatively stable at ₹13.38 lakhs compared to ₹13.99 lakhs in Q1 FY2024

Management Commentary

While the company did not provide specific management commentary in the released results, the financial data indicates challenges in the Plastics segment and a need for potential strategic interventions to improve overall profitability.

Auditor's Review

The unaudited financial results were reviewed by the statutory auditors, Subbachar & Srinivasan, Chartered Accountants. Their limited review report states that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Investors and stakeholders will be watching closely to see how Lakshmi Electrical Control Systems Limited addresses the challenges in its Plastics segment and leverages the strength of its Electricals business in the coming quarters.