U CAN NEVER TELL MOHANJI BUT I DONT THINK SO BEC OF THIS ARTICLE
INTERVIEW - Lakshmi Machine sees demand recovery in H2
Wed Oct 28, 2009 5:18pm IST
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By Aniruddha Basu
MUMBAI (Reuters) - Lakshmi Machine Works Ltd expects a pick-up in sales in the second half of the fiscal, but sees flat annual revenue mainly due to a stagnant order flow in the first half.
"We don`t expect a growth, we hope we will be able to achieve last year`s levels, as the first six months have been a disaster. And whatever we lost, it is very difficult in a capital goods industry to catch up in this period," Chief Financial Officer R. Rajendran told Reuters.
The company, which commands more than 60 percent of India`s spinning machinery market, had reported revenues of 13.75 billion rupees for the year ended March 2009.
In July-Sept, its sales fell 39 percent to 2.68 billion rupees but rose from an 1.87 billion rupee turnover in April-June.
Rajendran said sales slumped in the first half of the current fiscal as muted demand from textile millers led to very few order deliveries in the period.
"Almost all orders have been deferred, orders have been matured for delivery but despite that customers are not ready to take deliveries," he said.
However he sees sales rising in the next two quarters on expectations that existing orders will be executed.
"We hope to do better -- maybe by 25 to 30 percent more than the first half".
The textiles machinery maker has an outstanding order book of 29 billion rupees, but it has been continuously declining from a high of 53 billion rupees at the end of FY07, as the economic turmoil set in.
But the CFO said the textile industry was gradually getting out of its prolonged slump due to the economic revival and certain government initiatives.
"We are seeing some recovery as liquidity has improved on account of TUFS (Technology Upgradation Fund Scheme), margins are better now, yarn realization is good".
The government will spend 11 billion rupees annually till 2012 to provide subsidies to textile mills upgrading their technology, and textile mills under TUFS will get a 5 percent interest subsidy.
INPUT COSTS, PRICES STABLE
Lakshmi Machine has improved its gross margins in July-Sept mainly due to stable prices of key raw materials like steel, and Rajendran said there was no need for a revision in product prices.
The firm had reduced product prices by 1-3 percent at the begining of the current fiscal in line with softening commodity costs, Rajendran said.
"We are maintaing price levels now as commodity prices are stable," he said.
"Raw material prices have stabilized and costs of manufacturing has not gone up, that is being reflected in EBITDA margins," he said.
Lakshmi Machine shares ended up 9.06 percent at 1,375.55 rupees in a Mumbai market that closed down 0.43 percent.
(Editing by Ramya Venugopal)
(For more news on Reuters Money visit w ww.reutersmoneyDOTin)
JUST GOOGLE RUMORS ON BONUS ISSUE BY LAKSHMI MACHINE WORKS that is how i do it and then browse as many articles as possible(latest only)
cheers and good luck. hansal77 says one share is likely to go up by 100rs this month but has not named it. have requested him for name of the share.
Pss sir, thank you.Can you let me know about the stock as and when you get it?one more repeat request,can you review your decision at least in my case about the suffix? Pleeeeeease
mohanji just as elders deserve respect from youngsters in the same way youngsters too are worthy of respect most of the time. The ji does not denote respect of elderliness but the natural respect for what the youngster is or in the least what he is expected to be. SO nothing doing on that count.
As to the others YES will inform u as I like to see everyone making money but utilising some portion towards amelioration of the hard life of the have nots(atleast to the majority who really sweat it out but earn meagre income which is not sufficient for the basic necessities of life even leave alone a little luxury like we enjoy)
WHY LMW IS GOING TO BE A MULTIBAGGER IN 2010
IS BECAUSE OF ITS LOW EQUITY BASE OF 12.36 CRORES.WITH EXPECTED SALES OF ABOVE 1000 CRORES FOR THIS FINANCIAL YEAR AND REVIVAL OF TEXTILE INDUSTRY MANY TEXTILE COMPANIES ARE GOING HEAVILY FOR EXPANSION.SO I HOPE GOLDEN DAYS OF LWM MAY BE ROUND THE CORNER.
dEAR Tara23,
what do you mean by earlier?It was and will be a great company always.Such a honest and investor company is very hard to find.A GEM if ever there is one.I have dealt with them and you would be amazed by the honesty and integrity the management displays in going through a transcation.A word once given by them is kept.Absolutely no need for any written proof
hi mk1k, it is a great company i know.. it is a roaring script a couple of years back..
now it may come back.. to it may comeback to its original shape...
dear Tara,
I have a sentimental attachment to Lakshmi Machine Works since my mother is from Coimbatore and it is my birthplace.Yet, I am so proud of this company and what it stands for.For me and only me no price is too big to pay for getting into this company.See even the market thinks so for the PE is 45 this day
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