With a market capitalization of Rs. 710 crores, the shares of the Special Purpose Machines manufacturing company started Friday’s trading session on a lower note at Rs. 385 compared to its previous close of Rs. 389.70. During the trading session, the shares hit a low of Rs. 375.20, losing around 2 percent and closed the day at Rs. 383 apiece
Financials:
Looking at the financial statements of Lokesh Machines Ltd, the revenue decreased by 22 percent from Rs. 80.34 crores during the March quarter to Rs. 62.53 crores during the June quarter. On the other hand, the net profits declined by 78 percent from Rs. 4.69 crores to Rs. 1.03 crores during the same period.
Comparing the same metrics on a YOY basis, the revenue surged by 24 percent from Rs. 50.30 crores during Q1FY24 to Rs. 62.53 crores in Q1FY25. In addition, the net profits zoomed by 35 percent from Rs. 76 lakhs to Rs. 1.03 crores during the same timeframe.
Order Book:
As of 31 March 2024, the company had an order book of Rs. 216.36 crores, out of which 93.36 crores of orders were received from the Machine Tools Division and the majority of orders i.e., Rs. 123 crores were received from Auto Components and Defence Division.
Defence Segment:
In FY23, the company set up a new division for manufacturing of Defence and Aerospace components. It owns more than 200 catering to automotive and non-automotive sectors.
In collaboration with the Defence Research and Development Organisation (DRDO), Lokesh Machines has successfully manufactured India’s first indigenous 9mm machine pistol.
Furthermore, the company has secured a commercial license for small arms manufacturing from the Ministry of Home Affairs and delivered over 100 weapon sets to government agencies.
Earlier, Lokesh Machines secured a substantial order worth Rs. 4.26 crore from the Northern Command of the Indian Army for 550 ASMI submachine guns.
Additionally, the company has secured a commercial license for small arms manufacturing from the Ministry of Home Affairs and delivered over 100 weapon sets to government agencies.
Recently, Lokesh Machines achieved a significant milestone by successfully fulfilling a major order from the Elite Northern Command of the Indian Army for 9x19mm submachine guns. This order is part of the Indian Army’s ongoing efforts to modernize its arsenal and enhance its operational capabilities.
This achievement is highly significant as it marks the first time a private, fully indigenous manufacturer has reached this milestone.
Lokesh Machines’ success is expected to inspire further collaboration between private manufacturers and the military, opening up new opportunities for indigenous defence production. As India continues to push for self-reliance in defence, the Asmi SMG could serve as a model for future projects.
The company further aims to boost revenue within the Defence Division by harnessing its expanded capacities, introducing new product lines, and capitalising on emerging opportunities in the sector.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 7.06 percent and a return on capital employed (RoCE) of 12.42 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 4.71 percent.
Company Profile:
Headquartered in Hyderabad, Lokesh Machines was incorporated in 1983. The company is a leading manufacturer of special purpose machines (SPMs) and machine tools, primarily serving the automobile, power generation, and general engineering industries and has forayed into the defence sector.
Written By Vaibhav Patil
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