LMW’s Q1 Earnings Dip Amid Soft Demand and Cost Pressures

Lakshmi Machine Works Ltd (LMW) has reported a subdued performance for the June quarter, reflecting sectoral headwinds and margin compression.

Key Highlights:

- Consolidated revenue from operations stood at 6.94 billion rupees, down sharply from 11.91 billion rupees in the same quarter last year.

- Net profit after tax came in at 114.7 million rupees, indicating a significant year-on-year decline.

Segmental Performance:

- Textile Machinery Division witnessed muted demand due to inventory correction and export slowdown.

- Machine Tool & Foundry Division faced margin pressure from input cost inflation and delayed order execution.

- Advanced Technology Centre remained stable, supported by aerospace component exports.

Operational Notes:

- Employee expenses and depreciation remained steady, but raw material costs weighed on profitability.

- The company continues to invest in automation and digital integration to improve throughput and cost efficiency.

Outlook:

- Management remains cautiously optimistic, banking on festive demand and export recovery in H2.

Sources: Economic Times, Business Standard, Trendlyne, BSE Filings.