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This is an entirely free service. No payments are to be made.Operating margins expand by 2.5% YoY during the fiscal, owing to decline across all cost heads (as percentage of sales).
Net profits grow by 18% YoY during FY08, slightly lower than the growth in topline. Profit performance impacted by a sharp 69% YoY jump in depreciation charges and a marginally lower other income. Actual net profit figure 6% lower than our estimates.
Board recommends dividend of Rs 25 per share (dividend yield of 1.5%).
(Rs m) | 4QFY07 | 4QFY08 | Change | FY07 | FY08 | Change |
Sales | 5,492 | 6,040 | 10.0% | 18,536 | 22,052 | 19.0% |
Expenditure | 4,610 | 5,045 | 9.4% | 15,644 | 18,057 | 15.4% |
Operating profit (EBDITA) | 881 | 995 | 12.9% | 2,892 | 3,995 | 38.1% |
Operating profit margin (%) | 16.1% | 16.5% | 15.6% | 18.1% | ||
Other income | 330 | 293 | -11.2% | 881 | 875 | -0.7% |
Depreciation | 221 | 356 | 61.3% | 688 | 1,159 | 68.5% |
Profit before tax | 991 | 932 | -5.9% | 3,086 | 3,712 | 20.3% |
Tax | 305 | 332 | 9.0% | 1,024 | 1,289 | 25.8% |
Profit after tax/(loss) | 686 | 600 | -12.6% | 2,062 | 2,423 | 17.5% |
Net profit margin (%) | 12.5% | 9.9% | 11.1% | 11.0% | ||
No. of shares | 12.4 | 12.4 | ||||
Diluted earnings per share (Rs) | 166.7 | 195.9 | ||||
P/E ratio (x) | 8.5 |
(Rs m) | FY07 | FY08 | Change | FY07 | FY08 | Change |
Textile machinery | ||||||
Revenue | 5,119 | 5,689 | 11.1% | 17,114 | 20,564 | 20.2% |
% share | 87.4% | 90.8% | 89.0% | 91.0% | ||
PBIT margin | 18.8% | 14.6% | 16.5% | 16.4% | ||
Machine tools & Foundry | ||||||
Revenue | 735 | 577 | -21.5% | 2,114 | 2,026 | -4.1% |
% share | 12.6% | 9.2% | 11.0% | 9.0% | ||
PBIT margin | -0.9% | 5.1% | 4.3% | 7.1% | ||
Total | ||||||
Revenue* | 5,854 | 6,266 | 7.0% | 19,228 | 22,590 | 17.5% |
PBIT margin | 16.3% | 13.7% | 15.2% | 15.5% |
LMW recorded a 2.5% expansion in its operating margins during FY08. This was made possible by decline in all the major cost heads of the company. Specifically, raw material expenses and other costs declined from 60.1% and 17.7% of sales in FY07 to 59.6% and 16.1% respectively during FY08.
LMW’s net profits, while recording an 18% YoY growth during the fiscal, were impacted by a sharp jump in depreciation charges (that were up 69% YoY). These charges have seemingly increased on account of the new capacity and windmills set up during the year.
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