Lux Industries Limited (LIL) (BSE: 539542 | NSE: LUXIND) announced its financial results for the quarter that ended June 30, 2017. The company clocked about 40% jump in its Profit After Tax (PAT) to Rs 15.69 crore compared to Rs 9.51 crore in its corresponding quarter previous year. Its EBIDTA stood at Rs 32.32 crore in the quarter evaluated compared to Rs 19.97 crore in FY17.
Highlights of the un-audited financial results as compared to Q1FY17 are:
|Particulars||Q1FY18 (Rs Crs)||Q1 FY17 (Rs Crs)|
|Total Income from Operations||260.12||181.70|
|EBITDA Margin (%)||12.43||10.99|
|Profit After Tax||15.69||9.51|
|PAT Margin (%)||6.03||5.24|
Commenting on the industry trends, Mr. Ashok Kumar Todi, Chairman, Lux Industries Ltd. said “Our industry is poised to grow with increasing urbanization, shift from unorganized to organized players, preference for branded products and premiumization. There is a lot of scope for penetration of our products and our endeavour is to capture higher share of wallet of our customer by offering new products with fashion, quality and comfort. GST is transforming our country into a single marketplace. We believe this tax reform will strengthen the overall position in the sector which forms 50% of the hosiery industry. In the long run, GST is going to be a game changer and we expect momentum to pick up from the second half of FY18.”
Commenting on the results, Mr. Pradip Kumar Todi, Managing Director, Lux Industries Ltd. said “We have achieved higher than expected revenues mainly because our distributors have temporarily increased their ordering pattern for the quarter ended June 2017 due to GST implementation. There has been a business disruption in the first 2-3 weeks of July 2017 as GST came into force and hence our Q2FY18 revenues will be impacted due to such one-off business disruption.”
The commissioning of fully automated technologically superior machines at Dankuni contributed to cost efficiencies thereby improving operating margins. Lux Industries possesses one of the lowest manufacturing cum conversion costs and is well placed to capitalise the ongoing upturn in the hosiery industry with an expected 12-15% growth in the revenues in FY18.
About Lux Industries Limited:
Lux Industries Limited, incorporated in 1995 is one of the largest players in the hosiery business having a market share of 13% of the organised industry. Products include Men’s, Women’s & Kids Innerwear, Winter wear, Socks & Slacks for Women in varied colours and designs. The company has over 5,000 SKU’s under various Brands and Sub Brands of LUX. With focus on growing exclusive retail outlets and in providing customers with a seamless buying experience, the company’s products are available in 4,50,000 retail points spread across India. LUX has a presence across the globe with exports to 47 countries.