Lakshmi Machine Works has reported a drop in its net profit by Rs 8.37 crore to Rs 25.37 crores during the first quarter of the current fiscal compared to the corresponding quarter of last fiscal. The Coimbatore-headquartered textile machinery manufacturing major’s profitability is said to have been impacted due to the recession in the automobile industry.

The textile machinery division has shown signs of improvement, but the machine tools and foundry divisions were hit because the economy itself was passing through a difficult phase. Capacity utilisation has dropped to around 65 per cent. While the profit (before interest and tax) of the textile machinery division fell to Rs 25.19 crores from Rs 31.47 crores a year ago, the machine tools and foundry division’s profitability nosedived to Rs 0.62 crore from Rs 5.77 crore. The Advanced Technology Centre is yet to turnaround. To beat the slowdown, the company is focusing on customer service and supply of spare parts and export markets like China, Turkey and Pakistan. 

Lakshmi Machine Works was founded in 1962. It is a leading textile machinery manufacturer in India and one among the three in the world to produce the entire range of spinning machinery. It has a 60 per cent market share in the domestic textile spinning machinery industry. It is engaged in manufacturing textile machinery, machine tools and foundry products. 

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