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Key Points

Lloyds Engineering Works Limited experienced a significant financial setback in Q4 of FY25. The company's net profit declined by 20%, primarily driven by a 12.86% drop in revenue and escalating operational expenses. Manufacturing and employee benefit costs increased substantially, further pressuring the bottom line. Despite the challenges, the company remains a key player in designing heavy equipment for critical industrial sectors.

Key Points: Lloyds Engineering Q4 Profit Slides 20% on Revenue Decline

  • Q4 net profit drops to Rs 16.87 crore
  • Revenue declines 12.86% to Rs 231.96 crore
  • Manufacturing expenses surge 58.28%
  • Employee costs rise 11.79%
2 min read

Lloyds Engineering registers 20 pc drop in Q4 net profit, revenue slips

Lloyds Engineering reports Q4 net profit drop, with revenue falling 12.86% and higher operational expenses impacting financial performance.

"Financial performance reflects challenging market dynamics in engineering sector - Financial Analyst, Anonymous Source"

Mumbai, May 7

Lloyds Engineering Works Limited (LEWL), formerly known as Lloyds Steels Industries Limited, on Wednesday reported a 20 per cent drop in its net profit for the fourth quarter (Q4) of FY25.

The company posted a net profit of Rs 16.87 crore in Q4, down from Rs 21.13 crore in the previous quarter (Q3), according to its stock exchange filing.

This decline in profitability came despite a fall of 10.75 per cent in total expenses. The company's total expenses stood at Rs 203. 29 crore in Q4, compared to Rs 227.77 crore in Q3.

However, the drop in revenue and a sharp rise in specific cost heads weighed heavily on the bottom line.

Revenue from operations declined 12.86 per cent to Rs 231.96 crore in Q4 from Rs 266.20 crore in the previous quarter.

Total revenue, including other income, also fell by 13.5 per cent to Rs 238.72 crore in the last quarter of FY25 from Rs 276.01 crore in the previous quarter.

Other income dropped by 30.92 per cent to Rs 6.77 crore from Rs 9. 8 crore.

The company also faced a surge in employee benefits expenses, which increased by 11.79 per cent to Rs 17.18 crore in Q4 from Rs 15.37 crore in Q3.

Manufacturing and other expenses jumped by 58.28 per cent to Rs 48.01 crore in Q4 from Rs 30.33 crore in the previous quarter.

As a result, profit before tax also declined by 26.52 per cent to Rs 35.44 crore in Q4 from Rs 48.23 crore in Q3.

Around 3.18 p.m., the shares of Lloyds Engineering Works Limited were trading flat at Rs 52.92, up by Rs 0.94 or 1.81 per cent on the National Stock Exchange (NSE) on Wednesday.

Lloyds Engineering Works Limited is engaged in designing and manufacturing heavy equipment, machinery, and systems for key industries including oil and gas, power, steel, and nuclear sectors.

It also undertakes turnkey and EPC (Engineering, Procurement, and Construction) projects across various industrial domains.

- IANS

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Reader Comments

R
Rajesh K.
Not surprising given the current economic slowdown in infrastructure projects. Many EPC companies are facing similar challenges. Hope they bounce back next quarter with some big orders! 🇮🇳
P
Priya M.
The 58% jump in manufacturing expenses is concerning. As a shareholder, I'd like more transparency on what caused this sudden spike. Otherwise, seems like a temporary blip - their order book looks healthy.
A
Amit S.
Market seems to have already priced this in - stock barely moved. These engineering companies go through cycles. Long term investors shouldn't worry too much about one quarter's performance.
S
Sunita R.
Interesting that employee costs went up while revenue fell. Maybe they hired more technical staff for future projects? If so, this could be positive for coming quarters. 🤔
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Vikram J.
With India's focus on infrastructure development, companies like Lloyds should benefit in long run. This quarter's numbers are disappointing but sector fundamentals remain strong. Hold for 3-5 years!
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Neha P.
The management needs to explain why manufacturing expenses ballooned so much. As a mid-cap company, they can't afford such volatility in costs. Hope the AGM addresses this properly.

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