Lakshmi Machine Works income from operations slipped marginally to Rs 564.19 crores at the end of the first quarter of the current fiscal compared to Rs 571.51 crores during the corresponding quarter of the earlier year. Its net profit also dipped from Rs 48.57 crores a year ago to Rs 43.86 crores at the end of the just concluded quarter.
Notwithstanding the dull investment climate LMW’s order book stood at over Rs 2,650 crores (excluding export orders). Funding is an issue and high interest costs are forcing mills to keep away from investing in a big way. Lakshmi is a textile machinery manufacturing major. It feels the south is an attractive market for its range of products. More than 40 per cent of its textile machinery sales happen in the southern zone. While the south topped in sales, inflow of new orders was primarily from the west, followed by the south and the north. The company’s capacity utilisation levels have, for some time, hovered around 65 to 70 per cent and that is expected to continue for this quarter.
Meanwhile LMW is planning to roll out new products. In the next four years, LMW plans to offer the entire range of machinery from blow room to ring frame.