Detailed Narrative
Textile Machinery Division Faces Historic Headwinds
The TMD segment, LMW's core business, is struggling with a 53.7% YoY revenue decline in 9M FY25, reaching ₹1,347 crores. This has resulted in a segment loss of ₹22 crores compared to a ₹270 crore profit in the previous year. Management attributes this to the 'longest slowdown' in history, driven by high cotton prices and poor yarn spreads, forcing the division to operate on a 5-day work week with sub-50% capacity utilization.
Machine Tool Division as a Growth Lever
The Machine Tool Division (MTD) and Foundry reported 9M revenue of ₹728 crores. While the auto segment remains a major contributor at 45%, management is aggressively targeting the Electronics Manufacturing Services (EMS) segment. They have developed specific machines (JD series) for the EMS ecosystem and believe the existing MTD capacity can support up to ₹1,200 crores in annual revenue, representing significant headroom for growth.
Strategic Pivot in Advanced Technology Center (ATC)
LMW has restructured its ATC division to focus on international aerospace and defence OEMs, with exports now accounting for 90% of the business. The division reported ₹123 crores in revenue for 9M FY25 and holds an order book of approximately ₹400 crores. Management aims to scale this to ₹300-400 crores annually by deepening relationships with existing large OEMs rather than chasing new ones, focusing on high-value-add components like engine parts and composites.
Auto Coner Launch to Address Market Gap
A key highlight of the call was the announcement of the 'Auto Coner' launch in Q4 FY25. Management estimates the annual market size for this product at ₹600-700 crores even in a weak market, potentially doubling to ₹1,200-1,500 crores in a healthy cycle. This product is expected to be a major revenue driver for the Textile Machinery Division once it moves beyond the initial limited launch phase.
Global Macro Pressures Delaying Order Execution
LMW's export performance is being hampered by macroeconomic issues in key markets. Bangladesh is facing foreign currency shortages, while Turkey's high interest rates (where bank deposits offer higher returns than industrial investments) are discouraging capital expenditure by textile mills. These factors have led to order push-outs, with management noting a 15-20% uncertainty in the execution of the current order book.