LMW

The Textile Machinery Division (TMD) experienced a 53.5% YoY revenue decline to ₹439 crores, swinging from an ₹82 crore profit to a ₹12.72 crore loss. Management attributed this to a 'sharp dip' in domestic demand caused by volatile cotton prices and poor margins for yarn manufacturers. Consequently, the company has reduced its working week to five days and initiated layoffs in April to align capacity with the current 45-50% utilization levels.

While LMW reports a substantial total order book of ₹3380 crores, management clarified that only ₹2100 crores is considered 'active' (backed by 10% advances). This active portion is expected to be executed over the next 12 months. The remaining ₹1280 crores are inactive orders where customers have yet to commit to a delivery schedule, reflecting the broader capex slowdown in the textile industry.

MTD revenue stood at ₹206 crores, down from ₹243 crores YoY, but remains a key focus area with 64-70% capacity utilization. Management noted intense competition from Japanese imports due to the depreciated Yen, which has made foreign machines cheaper. Despite this, LMW is maintaining a 30% capacity headroom and focusing on innovation in machining centers for the EMS and auto sectors.

The Aerospace (ATC) division maintained stable revenue at ₹39 crores, but profits fell 66% YoY to ₹1.5 crores. This margin compression is a result of deliberate investments in the new composite division, which is currently incurring costs during its stabilization phase. The metallic segment remains profitable and stable, with over 90% of the division's turnover coming from exports.

LMW is betting on new technology to drive the next growth cycle, with a soft launch of the Autoconer currently underway and full commercialization expected by Q4 FY25. The Airjet loom is slated for a FY26 launch. Internationally, the company is consolidating its subsidiaries under a UAE-based holding structure, supported by a ₹200 crore investment, to better serve export markets.