LMW Reports 57% Jump in Q2 Net Profit to 451.4 Million Rupees

LMW Limited , a diversified engineering company, has announced its financial results for the second quarter. The company, which operates through three main segments - Textile Machinery Division, Machine Tool & Foundry Division, and Advanced Technology Centre - reported significant growth in its net profit.

Financial Performance

LMW's financial performance for Q2 showed substantial improvement across key metrics. Here's a breakdown of the key financial indicators:

Metric	Q2 (₹ million)	Q2 Previous Year (₹ million)	YoY Change
Revenue	7,760.00	7,510.00	+3.33%
Net Profit	451.40	287.50	+57.01%
EBITDA	485.20	354.00	+37.06%

Key Highlights

Net Profit Growth: LMW reported a significant 57% jump in net profit, reaching ₹451.40 million compared to ₹287.50 million in the same period last year.
Revenue Increase: The company's revenue increased to ₹7,760.00 million from ₹7,510.00 million year-over-year, showing a growth of 3.33%.
EBITDA Improvement: EBITDA rose substantially to ₹485.20 million from ₹354.00 million in the previous year, marking a 37.06% increase.
EBITDA Margin Expansion: The EBITDA margin improved to 6.25% from 4.72% in the comparable period, indicating enhanced operational efficiency.

Performance Analysis

The results demonstrate LMW's ability to significantly improve its profitability despite modest revenue growth. The substantial increase in net profit and EBITDA, coupled with margin expansion, suggests effective cost management and operational improvements.

The company's diverse business segments may have contributed to its resilience, allowing it to capitalize on opportunities across different sectors.

Looking Ahead

As LMW moves forward, stakeholders will be keen to see if the company can maintain this growth trajectory. The significant improvement in profitability metrics positions the company well for future investments and expansion.

Investors may look for insights into the company's strategies for sustaining this performance, particularly in light of any ongoing market challenges or opportunities in its various business segments.

Note: All financial figures are based on the reported results and are subject to any applicable audits or reviews.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.47%	+0.27%	+7.64%	-1.33%	-5.49%	-7.10%

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.