Lakshmi Machine Works gains after stellar Q2 performance

Lakshmi Machine Works rose 1.94% to Rs 12486.75 after the company reported 139.6% jump in consolidated net profit to Rs 104.30 crore in Q2 FY23 from Rs 43.53 crore in Q2 FY22.

Net sales during the quarter increased by 50.9% YoY to Rs 1,211.90 crore. The Textile Machinery Division recorded revenue of Rs 974.11 crore (up 61.1% YoY), revenue of Machine Tool & Foundry Division was Rs 263.87 crore (up 24.1% YoY) and that of Advanced Technology Centre was Rs 32.86 crore (up 3.6x YoY) during the period under review.

Total expenses rose by 47.7% to Rs 1,1110.43 crore in Q2 FY23 as compared with the same period last year, due to higher raw material costs (up 53% YoY), higher employee expenses (up 25.6% YoY) and higher other expenses (up 50.6% YoY).

Profit before tax in Q2 FY23 stood at Rs 144.09 crore, up by 118.9% from Rs 65.81 crore in Q2 FY22.

Separately, the company informed that its board has approved the proposal for making an investment of Rs 50 crore in the 5,000 unsecured compulsorily convertible debenture (CCD's) issued by LMW Aerospace Industries, a wholly owned subsidiary of the company.

LMW Aerospace is involved in the production, assembly, supply of products and rendering of services for

Aerospace industry. It is yet to commence its operations.

Lakshmi Machine is making the said investment in order to support working capital requirements of the wholly owned subsidiary company upon commencement of business operations.

Lakshmi Machine Works is a leading textile machinery manufacturer in India and one among the three in the world to produce the entire range of spinning machinery.

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