LMW Limited , formerly known as Lakshmi Machine Works Limited, has announced its financial results for the first quarter of FY2025-26, showcasing a modest growth in revenue amidst challenging market conditions.

Revenue and Profit Overview

The company reported a total revenue of Rs 685.00 crores for Q1 FY2025-26, representing a 4% increase from Rs 659.00 crores in the corresponding quarter of the previous year. LMW's standalone Profit Before Tax (PBT) saw a significant improvement, rising to Rs 32.50 crores from Rs 17.50 crores in the same period last year. On a consolidated basis, the PBT reached Rs 20.00 crores, up from Rs 16.00 crores in the previous year's quarter.

Segment Performance

Textile Machinery Division (TMD)

The TMD experienced headwinds, with revenue declining by 6% to Rs 415.00 crores. The division posted a loss of Rs 11.00 crores. LMW continues to operate the TMD on a 5-day work week due to low capacity utilization and reduced order inflows over the past eight quarters.

Machine Tool and Foundry Division

This division showed promising growth, with revenue increasing to Rs 251.00 crores from Rs 206.00 crores in the previous year. The segment generated profits of Rs 12.00 crores.

Aerospace Division (ATC)

The ATC division recorded revenue of Rs 46.00 crores with profits of Rs 4.00 crores. Notably, exports contributed to 90% of the turnover in this segment, highlighting its strong international presence.

Order Book and Market Outlook

LMW maintains a substantial order book of around Rs 2,800.00 crores, with 50-55% being active orders. However, the company faces challenges due to global tariff uncertainties and geopolitical situations affecting machine demand.

Future Outlook

While facing short-term challenges, particularly in the textile machinery sector, LMW is positioning itself for future growth. The company is exploring opportunities in emerging markets and focusing on expanding its product range in the machine tool segment. Additionally, LMW's participation in the growing Indian defence sector could provide new avenues for growth in the coming quarters.

As the global economic landscape evolves, LMW remains committed to navigating market uncertainties while capitalizing on its diverse business portfolio and technological capabilities.

LMW Limited (formerly known as Lakshmi Machine Works Limited) has announced its financial results for the first quarter of the fiscal year, showcasing substantial improvements in key financial metrics.

Financial Highlights

• Revenue: ₹685.37 crore, up from ₹659.22 crore in Q1 of the previous year
• EBITDA: ₹25.60 crore, a significant increase from ₹13.30 crore year-over-year
• EBITDA Margin: Improved to 3.75% from 2.02% in the same period last year
• Net Profit: ₹24.47 crore, nearly doubling from ₹12.49 crore year-over-year

Segment Performance

LMW's financial results reveal varied performance across its business segments:

Key Takeaways

1. Revenue Growth: Despite challenging market conditions, LMW managed to increase its revenue by 3.96% compared to the same quarter last year.

2. Profitability Surge: The company's net profit saw a remarkable 95.92% increase, demonstrating effective cost management and operational efficiency.

3. EBITDA Improvement: The substantial rise in EBITDA and EBITDA margin indicates enhanced operational performance and better cost control measures.

4. Segment Performance: While the Textile Machinery Division faced challenges, the Machine Tool & Foundry Division and Advanced Technology Centre showed positive results, contributing to the overall profitability.

5. Balance Sheet Strength: LMW's total assets stood at ₹4,176.95 crore, with a strong equity base.

LMW's Q1 results reflect a robust start to the fiscal year, with significant improvements in profitability metrics. The company's diversified business segments have helped in maintaining overall growth despite challenges in specific areas. Investors and market watchers will likely keep a close eye on how LMW builds on this momentum in the coming quarters, particularly in improving the performance of its Textile Machinery Division.

The company's board approved these results at a meeting, and they have been subject to a limited review by statutory auditors. LMW continues to focus on operational excellence and strategic growth initiatives across its business segments.