The shares of this leading machine tools manufacturer’s and exporter of CNC machines gained 3.7% on Friday’s trade after the company received a grant of license to manufacture of Fixed / Towed Heavy Machine Guns.
At 12:15 a.m., Lokesh Machines Ltd. shares were trading at ₹378 apiece, up 0.47% from the previous close price on the national stock exchange. The company has a market capitalization of ₹699 crore.
What Happened
According to Lokesh Machines exchange filing, the company received a grant of license to manufacture of Fixed / Towed Heavy Machine Guns of caliber above 12.7mm and up to 30mm from Department for Promotion of Industry and Internal Trade, Government of India, New Delhi.
Company Financials
According to the company’s financials, revenues climbed marginally by 23 percent year on year, from ₹ 239 crores in FY 22-23 to ₹ 293 crores in FY 23-24. Within the same timeframe, Net profit increased by 40 percent, from ₹10 crores to ₹14 crores.
The company’s operating profit margin improved from 9.84% to 10.91% in FY24, while its net profit margin increased steadily over the last four years, reaching 4.71% in FY24. The return on equity (ROE) and return on capital employed (ROCE) stood at 7.06% and 12.42%, respectively. Additionally, the debt-to-equity ratio of Lokesh Machine Limited rose from 0.55x to 0.60x in FY24.
About the company
Lokesh Machines Limited, incorporated in 1983, is a prominent manufacturer of lathe machines, connecting rods, and cylinder blocks.
The company ranks among the top five machine tool manufacturers in India and is a major exporter of CNC machines to countries including Japan, Germany, the
Netherlands, Italy, Turkey, and Russia. Additionally, Lokesh is a market leader in cam and crank borers, fine borers, and finish milling machines.
In FY24, Lokesh Machines produced 1,400 units annually in its machine tools division, 3 million units in its auto components division, and 12,000 units in its defense division. The company operates through three segments: general-purpose machines, special-purpose machines, and the auto components division.
Order Book
In Q4 FY24, Lokesh Machine secured orders worth ₹55 crore for its Machine Tools division and ₹26 crore for its Auto Components & Defence division. The company also fulfilled orders valued at ₹53.88 crore and ₹27.11 crore for the respective divisions.
At present, Lokesh Machine’s total order book stands at ₹216.36 crore, with ₹93.36 crore allocated to the Machine Tools division and ₹123 crore to the Auto Components & Defence division.
Written by Omkar Chitnis
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