LG Balakrishnan & Bros Limited, a prominent Indian manufacturing company, has reported a cybersecurity incident affecting its IT systems. The company detected a malware attack and has taken immediate steps to address the situation.

Cybersecurity Incident Details

According to a disclosure made by the company under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, LG Balakrishnan & Bros has experienced a malware incident affecting select IT systems. The company has acted promptly to contain the impact and secure its systems.

M Lakshmi Kanth Joshi, Senior General Manager (Legal) & Company Secretary & Compliance Officer, stated in the disclosure, "The Company has detected a malware incident, affecting select IT Systems and immediate action has been taken to contain the impact and secure the system."

Response and Monitoring

LG Balakrishnan & Bros has taken several steps in response to the cybersecurity threat:

1. Immediate containment measures to limit the impact of the malware
2. Notification of relevant authorities about the incident
3. Ongoing monitoring of the situation to ensure business continuity

The company emphasized that it continues to operate its business as usual while closely monitoring the situation.

Financial Performance

Despite the cybersecurity challenge, LG Balakrishnan & Bros reported positive financial results for the recent quarter. The company posted revenue of ₹486.00 crore, up from ₹436.00 crore in the year-ago period. However, EBITDA saw a slight decline from ₹74.00 crore to ₹71.00 crore.

Future Outlook

CMD B Vijayakumar provided insights into the company's future prospects:

• US market expansion for industrial chains may slow but is not expected to significantly impact overall performance
• The company is targeting 10-15% growth for FY26
• Exploration of operations in Vietnam or Cambodia is underway

Stock Performance

Following the news, shares of LG Balakrishnan & Bros closed at ₹1375.55, up ₹2.70 from the opening price.

As LG Balakrishnan & Bros navigates this cybersecurity challenge while maintaining growth, stakeholders and investors will be watching closely for any updates on the incident's impact and the company's ongoing response measures.

LG Balakrishnan & Bros , a leading manufacturer of transmission products and accessories for automotive and industrial applications, has announced a significant expansion of its global operations. The company's Board of Directors has approved a $10 million investment to establish a new manufacturing facility in Mexico, marking a strategic move to strengthen its presence in North America.

Strategic Expansion

The decision to set up a new plant in Mexico comes as part of LG Balakrishnan & Bros' efforts to cater to current and new customers in the region. This expansion is expected to boost the company's production capabilities and enhance its ability to serve the North American market more effectively.

Investment Details

According to the company's disclosure to the stock exchanges, the key details of the investment are as follows:

Broader Expansion Plans

In addition to the Mexico facility, LG Balakrishnan & Bros is exploring further international expansion opportunities. The Board has authorized the Managing Director and Executive Director to investigate the possibility of setting up manufacturing plants in Vietnam or Thailand. This move aims to cater to current and new customers in Southeast Asian nations, indicating the company's ambition to strengthen its foothold in the global automotive and industrial components market.

Management's Perspective

While specific comments from the management were not provided, the investment decision reflects LG Balakrishnan & Bros' confidence in the growth potential of the North American market and its commitment to expanding its global manufacturing footprint.

Financial Implications

The company plans to fund the $10.00 million investment through internal accruals, showcasing its strong financial position and ability to support significant expansion projects without external financing.

This strategic move by LG Balakrishnan & Bros is expected to not only enhance its production capabilities but also potentially lead to increased market share and revenue growth in the coming years. The expansion into Mexico positions the company to better serve its North American clients and tap into new business opportunities in the region's automotive and industrial sectors.

As LG Balakrishnan & Bros embarks on this significant international expansion, stakeholders will be keenly watching how this investment translates into business growth and financial performance in the upcoming quarters.