Lakshmi Machine Works Limited (LMW), a leading textile machinery manufacturer in India, has posted net profit of Rs. 1.37 billion during fiscal year 2011-12 ending March 31, showing a 17 percent decline compared to net profit of Rs. 1.66 billion registered during fiscal 2010-11.
However, LMW's net sales increased by 17 percent year-on-year to Rs. 21.13 billion during last fiscal over its net sales of Rs. 18.04 billion reported during fiscal 2010-11.
The Coimbatore-based company's exports too grew to Rs. 3.21 billion during last fiscal, as against its exports worth Rs. 2.84 billion during the previous year. Last fiscal's figures include exports of machinery parts worth Rs. 730 million made by the company to its China-based subsidiary.
For the January-March 2012 quarter, LMW's net profit declined to Rs. 69.9 million, as against its net profit of Rs. 444 million reported during the same quarter of earlier fiscal.
Similarly, income from operations of the company slipped to Rs. 5.02 billion during the fourth quarter of last fiscal from Rs. 5.35 billion achieved during the last quarter of 2010-11.
LMW attributed the decline in net profits to several factors, including shortage of power in Tamil Nadu, lukewarm response to the Technology Upgradation Fund Scheme (TUFS) and no major announcement to boost the textile sector in the recent Budget.
The company, however, said that the new range of machineries rolled out by it during the last fiscal year received good response from textile mills.
Fibre2fashion News Desk - India