26 May , 2021 By : Kanchan Joshi
MUMBAI: Shares of Lux Industries jumped 13.6 percent after the company's consolidated net profit surged 118% year-on-year to Rs90.64 crore in the March quarter.
At 01:40 pm, shares of Lux Industries traded at Rs2558.50 apiece, up 10.5% from previous close, while the benchmark index Sensex rose 0.82% to 51,053.10.
Net sales increased 48.18% year-on-year (YoY) to Rs595.05 crore for the quarter ended March, while earnings before interest, tax, depreciation and ammortisation (EBITDA) rose 95% to Rs128.96 crore. EBITDA margin was at 21.45% as on 31 March as against 16.38% a year ago.
For the full year, the apparel maker posted a 52% jump in its net profit to Rs269.38 crore from Rs177.25 crore in fiscal 2020. Net sales rose 17.9% to Rs1,942.89 crore in the year ended 31 March.
Anticipating an improvement in demand and becoming future-ready, the management has announced a greenfield expansion with a capex of Rs110 crores and has identified a land parcel with construction area of around 4,60,000 sq. ft. Of the total area, 20-30% will be used for manufacturing units and balance for warehousing, storage, and finishing facilities.
The capex will be completed over the next 12-18 months and will be funded through internal accruals and with this investment, with the management expecting to generate incremental sales of around Rs.400 crore.
Lux Industries is one of the largest players in the hosiery business, with a market share of more than 15% of the organised men's innerwear industry.
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