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Company Performance

LMW Spinning Success In China

• By  Textile Excellence
• May 27, 2011

The textile machinery behemoth Lakshmi Machine Works (LMW) has indicated that it’s wholly owned subsidiary in China, LMW Textile Machinery (Suzhou) Co Ltd to turn black in the current financial year 2011-12. The Chinese subsidiary become operational in September 2009 with one million spindles capacity and has been able to make significant impact in the growing Chinese textile market. China has been investing heavily in new textile machinery and on modernising old spindles which is favouring the company’s investment in the country. The company’s long standing expertise in yarn spinning technology and state-of-the-art technology has been well accepted by the Chinese market in a short span of time.

The textile machinery maker has reported net profit of Rs. 442 million (approx. US$ 9.8 million) for the fourth quarter of 2010-11 as against a profit of Rs. 306.8 million (US$ 6.81) during the same period in 2009-10. LMW’s total total income during the quarter also rose to Rs. 5.39 billion (US$ 119.8 million) from Rs. 3.63 billion in the same period a year ago. During the current financial year (2011-12) the company expects to garner higher operating profits as a result of recent product price hike of around 7.5 percent while maintaining 17-18 percent growth rate in the top line.

On the other hand Rieter-LMW Machinery (RLM), a LMW - Rieter Machine Works joint venture, to become LMW’s wholly owned subsidiary by first quarter of 2011 and has turned around. The name of the company would be changed after the acquisition and LMW will utilize entire one million spindles capacity of this venture for own purpose.

LMW’s total total income during the quarter also rose to Rs. 5.39 billion (US$ 119.8 million) from Rs. 3.63 billion in the same period a year ago. During the current financial year (2011-12) the company expects to garner higher operating profits as a result of recent product price hike of around 7.5 percent while maintaining 17-18 percent growth rate in the top line.