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.

Lakshmi Machine Works (LMW), a prominent player in the textile machinery manufacturing sector, has released its financial results for the fourth quarter of the fiscal year, revealing a downturn in performance alongside a generous dividend recommendation.

Q4 Financial Performance

LMW's fourth-quarter results show a notable decline across key financial metrics:

The company experienced a significant 24.6% year-over-year decrease in net profit, which fell to ₹49.10 crore from ₹65.15 crore in the same quarter of the previous year. This decline was accompanied by a 17.0% reduction in revenue, which dropped to ₹790.00 crore from ₹952.00 crore.

EBITDA Performance

LMW's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a downturn, decreasing to ₹57.00 crore from ₹71.75 crore in the corresponding quarter of the previous year. The EBITDA margin experienced a slight contraction, moving from 7.54% to 7.22%, indicating a marginal decline in operational efficiency.

Dividend Announcement

Despite the challenging quarter, LMW's board has recommended a dividend of ₹30 per equity share. This decision suggests the company's commitment to rewarding shareholders even in the face of financial headwinds.

Conclusion

The Q4 results for LMW reflect the challenges faced by the company, with declines across revenue, profitability, and operational metrics. However, the board's decision to recommend a substantial dividend indicates confidence in the company's financial stability and future prospects. Shareholders and market watchers will likely keep a close eye on LMW's strategies to navigate the current market conditions and return to growth in the coming quarters.