Lakshmi Electrical Control Systems Limited (LECS) held its 44th Annual General Meeting (AGM) on August 25, 2025, where shareholders approved several key changes to the company's board and management structure.

Board Appointments and Re-appointments

New Appointments

• Sri. Sudesh Koti Reddy appointed as Non-executive Independent Director for a five-year term, effective June 5, 2025.

  • Koti Reddy, 62, brings 37 years of experience in engineering and manufacturing.
  • Previously served as Managing Director of Sucharita Precision Gears Private Limited until April 2025.

• Sri. Vedhanth Senthilkumar's appointment as Non-executive Non-Independent Director regularized.

  • Holds B.Eng. (Honors) in Manufacturing and Mechanical Engineering from the University of Warwick.
  • Experience with TVS Group, Tata Motors, and LMW Limited.

Re-appointment

• Sri. Arjun Balu re-appointed as Independent Director for a second five-year term, beginning May 28, 2026.
  • Business management graduate with over 25 years of experience.
  • Previously served as Joint Managing Director of Sri Balasubramania Mills Limited until 2016.

Board Retirement

Sri. Sanjay Jayavarthanavelu retired from the board at the conclusion of the AGM. The vacancy created by his retirement will not be filled at this time.

Auditor Appointment

M/s. MDS & Associates LLP appointed as Secretarial Auditors for five consecutive financial years from 2025-26 to 2030-31.

Financial Decisions

• Dividend declared: Rs. 4.00 per equity share (40%) for the financial year 2024-2025.
• Total dividend amount: Rs. 98.32 lakhs, subject to tax deductions.

Related Party Transactions

Shareholders approved material related party transactions:

These transactions are approved for the period until the next AGM.

The board changes and strategic decisions reflect LECS's commitment to strengthening its governance structure and positioning itself for future growth in the electrical control systems sector.

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.