On the segmental front, the revenue from the textile machinery division was at Rs 289.84 crore (down 6.2% YoY), revenue from the machine tool & foundry division was at Rs 106.88 crore (up 2% YoY) and the revenue from the advanced technology centre was at Rs 9.05 crore (up 3.6% YoY) during the quarter.

The company incurred an exceptional expenditure of Rs 6.68 crore in Q2 FY21. Exceptional items represent compensation towards Voluntary Retirement Scheme opted for by employees,” the company said.

Profit before tax in Q2 September stood at Rs 8.56 crore, down 53.8% from Rs 18.54 crore in Q2 September 2020. Current tax expense in the second quarter declined by 74.1% year-on-year (YoY) to Rs 1.65 crore.

The scrip shed 0.75% to Rs 4007 on the BSE. It traded in the range of 4000 and 4060 so far during the day.

The stock is near its 52-week high of Rs 4,085 hit on 15 October 2020. It has surged 100.3% from its 52-week low of Rs 2,001 hit on 25 March 2020.

Lakshmi Machine Works is engaged in the manufacturing and selling of textile spinning machinery, computer numerical control machine tools, heavy castings, and parts and components for aerospace industry.

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Net profit of Lakshmi Machine Works declined 43.17% to Rs 6.91 crore in the quarter ended September 2020 as against Rs 12.16 crore during the previous quarter ended September 2019. Sales declined 3.18% to Rs 396.34 crore in the quarter ended September 2020 as against Rs 409.34 crore during the previous quarter ended September 2019.

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The counter has surged 7% in five trading session from its previous closing low of Rs 3758.75 on 8 October 2020. Shares of Lakshmi Machine hit a 52-week high of Rs 4,085 in intraday today. The stock is up 101% from its 52-week low of Rs 2001 on 25 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 71.296. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 3513.40 and 3160.17 respectively. These levels will act as crucial support zones in near term.

The company will announce its Q2 September 2020 results on 26 October 2020. The company posted a consolidated net loss of Rs 21.62 crore in Q1 June 2020 as compared to a consolidated net profit of Rs 10.47 reported in the same period last year. Net sales tumbled 63.2% year on year to Rs 168.78 crore in Q1 June 2020.

Lakshmi Machine Works is engaged in the manufacturing and selling of textile spinning machinery, computer numerical control machine tools, heavy castings, and parts and components for aerospace industry.

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Lakshmi Machine Works will hold a meeting of the Board of Directors of the Company on 26 October 2020.

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