A 15 per cent increase in capacity utilisation levels during the second quarter of the current fiscal as compared to the previous quarter has helped Lakshmi Machine Works register higher profitability and top-line growth, its Director-Finance, R. Rajendran, said.
Highlighting the performance of the textile machinery manufacturing major, he said, ''It was good overall, considering that our exports had gone up from Rs 127 crore during the first half of the earlier fiscal to Rs 193 crore during the corresponding period of the current year. We achieved a net gain in foreign exchange earnings.”
Income from operations swelled to Rs 541.05 crore at the end of the just-ended quarter compared to Rs 402.25 crore achieved during the previous quarter and up from Rs 504.06 crore during the corresponding quarter of the earlier fiscal.
Net profit also rose 44 per cent to Rs 52.21 crore (Rs 36.11 crore).
On the increase in employee benefits expense to Rs 62.12 crore (Rs 43.42 crore), Mr Rajendran said that the company recently inked a wage accord, considering a 20 per cent hike in wages.
Éxceptional item represents compensation towards voluntary retirement scheme, opted by employees, he explained and said that the outgo on this account was of the order of Rs 0.29 crore.
While stating that he is expecting the present trend to continue in the coming quarters of the current fiscal, Mr Rajendran revealed that the order book position, which had remained at the same level for quite some time in spite of execution, increased to Rs 3,815 crore from Rs 3,755 crore.
Other income represents interest income from term deposits while finance cost was on account of discounting of bills, he clarified.