Lakshmi Machine Q1 net profit rises 37%

Lakshmi Machine Works (LMW) Limited, a leading textile machinery manufacturer in India, has posted a 37 percent increase in net profit during the first quarter of current fiscal ended June 30. The company’s net profit rose to Rs. 411.4 million with a sound 50 percent increase in its total earnings to Rs. 5.02 billion.

Earnings from the textile machinery business, which accounts for 85 percent of the total revenues, increased to Rs. 4.38 billion, registering a year-on-year growth of 45 percent. Profit from this segment improved by 36 percent to Rs. 423.3 million, which was 89 percent of the total profit.

Operating Profit Margin (OPM) of the company was, however, under pressure and declined by 2.3 percent to 13.9 percent, mainly owing to hike in price of raw material.

Employee cost too declined by 1.8 percent during the quarter to 8.3 percent. While operating profit rose 27 percent to Rs. 708.8 million, it’s Profit Before Interest, Depreciation and Taxes (PBIDT) was up by 23 percent to Rs. 854.5 million.

Being a debt free company, LMW enjoys the benefit of paying nil interest cost.

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