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Lux Industries Ltd has surged 11 per cent to hit a new high of Rs 2,571.20 on the BSE in intra-day trade on Wednesday after the company reported a more-than-doubled net profit at Rs 90.64 crore in the March quarter (Q4FY21), on the back of healthy operational income. The company, one of India’s largest hosiery producers and exporter, had posted a profit of Rs 41.49 crore in Q4FY20. In the past three days, the stock rallied 26 per cent on the BSE.
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Lux Industries’ income from operations during the quarter under review jumped 49 per cent year on year (YoY) at Rs 601 crore against Rs 404 crore in the corresponding quarter of previous fiscal. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins improved 507 basis points (bps) at 21.45 per cent against 16.38 per cent in the year-ago quarter. Higher Ebitda margins were on account of an increased share of value-added products and overall cost efficiency measures, including advertisement expenditure.
The management said the performance has been driven by progressive improvement in demand and consumption across the innerwear industry. The company witnessed healthy traction for the economy and mid-premium categories and saw a gradual pickup in the premium and export segment.
Stock Covered in the news
