LMW net profit down ..
Lakshmi Machine Works (LMW) has reported a 76.69% drop in net profit at Rs 11.13 crore in the first quarter ended June 30, 2009,against Rs 47.74 crore in the same period last year. Net sales declined 59.37% to Rs 186.53 crore (Rs 459.14 crore), the company said in a media release.
"It was a boom period last year and the effects of global meltdown were felt only from October 2008 onwards. Therefore, we cannot compare the results of this quarter with the same period last year," said LMW's CFO R Rajendran.
He said, the company was doing very well in the first half last year but sales dipped in the second half due to economic slowdown. "Compared to the last quarter in 2008-09, we have done nearly the same or little bit more by showing operating margin in the first quarter of this year," he added.
The current capacity utilisation of the company is only around 40% and it is ready to meet the demands of the industry as and when it improves. "Earlier, delivery was a constraint for us. But now we are ready to tackle any demand," Mr Rajendran said.
Regarding inventory, he said, the company has minimised it at all levels by following lean technology.
"It was a boom period last year and the effects of global meltdown were felt only from October 2008 onwards. Therefore, we cannot compare the results of this quarter with the same period last year," said LMW's CFO R Rajendran.
He said, the company was doing very well in the first half last year but sales dipped in the second half due to economic slowdown. "Compared to the last quarter in 2008-09, we have done nearly the same or little bit more by showing operating margin in the first quarter of this year," he added.
The current capacity utilisation of the company is only around 40% and it is ready to meet the demands of the industry as and when it improves. "Earlier, delivery was a constraint for us. But now we are ready to tackle any demand," Mr Rajendran said.
Regarding inventory, he said, the company has minimised it at all levels by following lean technology.
