LMW's Financial Results for Q1 FY25 Show Decline in Sales and Profitability.

Lakshmi Machine Works (LMW), a leading textile machinery company in the midcap sector, has recently declared its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financials, LMW has seen a significant decline in its performance, with a score of -26 compared to -12 in the previous quarter. However, there are some positive aspects to the company’s financials. The cash and cash equivalents for the half-yearly period are at their highest in the last six periods, indicating an improvement in short-term liquidity. Additionally, the debtors turnover ratio for the half-yearly period is also at its highest in the last five periods, showing that the company has been able to settle its debtors faster.

On the other hand, there are several areas where LMW’s financials have not been performing well. The net sales for the quarter have fallen by -43.49% year on year, indicating a negative trend in sales. The profit before tax less other income (PBT) has also seen a significant decline of -115.33% year on year, and the profit after tax (PAT) has fallen by -88.3% year on year. The company’s operating cash flow has also been decreasing each year for the past three years, and the net sales and operating profit for the quarter are at their lowest in the last five quarters. The operating profit margin and PBT for the quarter are also at their lowest in the last five quarters, indicating a decline in the company’s efficiency and profitability. Furthermore, the non-operating income for the quarter is 181.05% of the PBT, which suggests that the company’s income from non-business activities is high and not sustainable in the long run. The earnings per share and dividend payout ratio for the quarter are also at their lowest in the last five quarters, indicating a decline in profitability and lower distribution of profits as dividends.

Overall, the financial results for the quarter ending June 2024 for Lakshmi Machine Works show a negative trend in sales, profitability, and efficiency. Investors should carefully consider these factors before making any investment decisions.