LMW

The Textile Machinery Division (TMD) is currently operating at sub-50% capacity utilization, leading the company to maintain a five-day working week. Management noted that the textile cycle, typically eight years, has been in a downturn for nearly two years, and the expected recovery post-December has not yet materialized. Despite this, the division holds a total order book of ₹2,600 crores, with actual executable orders at ₹1,500 crores. Spares continue to be a resilient segment, contributing 26% of TMD revenue, driven by a separate dedicated division and new warehouses in Indore.

Consolidated performance was weighed down by losses in international subsidiaries, with LMW Global (Dubai) reporting a loss of ₹25 crores for the 9-month period compared to a ₹1.5 crore profit YoY. LMW China also saw its loss widen to ₹11 crores from ₹4 crores in the previous period. Management attributed these losses to a high fixed-cost global setup that is currently under-utilized due to low export volumes (9-10% of total) and economic challenges in key markets like Bangladesh and Turkey.

The MTD and Foundry segment reported a 9-month revenue of ₹853 crores, a significant increase from ₹728 crores in the prior year. The division is operating at 75% capacity utilization, providing room for further growth. Management is particularly optimistic about Machining Centers (VMCs), which currently make up 25% of the MTD mix, and plans to continue expanding its footprint in this high-demand sector.

The ATC segment is a bright spot, with its order book growing by 20% to approximately ₹360 crores, deliverable over the next 1.5 years. Revenue for the 9-month period stood at ₹150 crores, up from ₹123 crores YoY. The segment is highly export-oriented (90%) and has successfully pivoted from space programs to broader aerospace and advanced technology applications, with composite billing starting to contribute to improved margins.

LMW has developed and successfully delivered 'drill tap centers' (J1 and J2 models) targeted at the electronics machining ecosystem, including suppliers to major players like Foxconn. Management estimates the Indian market for these specific machines at 7,000 to 8,000 units per year. While specific customer contracts remain confidential, the company is actively participating in tenders and sees significant long-term demand in this segment.