With the emergence of the COVID-19 pandemic, industries from across the globe have been adversely impacted by the current economic conditions and trends. As a matter of fact, businesses worldwide have resorted to various means and have taken crucial courses of action to keep themselves afloat. In the case of Lux Industries Ltd, it is shown that resilience in the face of adversities can allow businesses to grow and flourish despite the difficulty of the times.
Standing at the helm of Lux Industries Ltd, Mr. Ashok Kumar Tod, the chairman shed light on the current situation. “While demand remains strong, the supply situation is likely to be adversely impacted by disruptions from COVID-19 lockdowns in India. We will remain agile to address the challenges and drive consistent, competitive, and cash accretive growth over the medium to long term,” the chairman said. “The export market is showing strong traction, and the majority of requirements are coming towards India. Strategy towards expansion is in place to increase the manufacturing and supply chain capacity to tab the market share in the ladies and kids segment,” he added.
In the same interview, Mr. Pradip Kumar Todi, the managing director of Lux Industries Ltd, commented on the company’s rather impressive financial results. “Revenue for the quarter is at an all-time high with a top line of around 601crore with a growth of 49.02%. EBITDA has shown a record growth and stands at Rs. 128.96 crores, an accelerated growth at 95.16%, while PAT stands at Rs. 90.64 crores with a growth of 118.46%, respectively, for Q4 FY 21. This is mainly attributed to the simultaneous volume and pricing growth across product segments,” he explained.
To further enlighten the public on how Lux Industries Ltd is doing during the pandemic, Mr. Saurabh Bhudolia, the chief financial officer, went deeper into the financial results. “During the FY 2021, the top line stands at around 1965 crore with a growth of 17%, and PAT has grown at 52% with an absolute number of around 269 Crore. The company has generated an operating cash flow of Rs.388.54 crore, out of which around Rs. 66.11 crore has been used for CAPEX and around Rs. 112.04 crore to repay the borrowings. On the closing date, the company has a net cash balance of Rs. 84.69 crores and gross cash and cash equivalents stand at 261.43 crores,” he shared. “Our working capital days were reduced to 122 days as compared to 160 days for the financial ending 2020. Our prudent financial decisions have helped us reduce our debt and become a net cash company,” he concluded.
Widely acknowledged for being a beacon of excellence and integrity, Lux Industries Ltd has a single-point agenda on investment in its people and IT. With corporate government at the forefront of its goals and targets, extreme measures are being taken for adequate internal controls.
As it continues to move to the summits of the industry, Lux Industries Ltd. is now considered a dominant player in the men’s innerwear segment and is also accelerating its growth driver via new expansions to capture the market share in the ladies and kids segment. With the business of Genx and Lyra getting merged with Lux, the company will have a larger and wider product offering that also offers premium innerwear under the brand ONN and ONE8.
After the anticipated merger, Lux Industries Ltd. would be among the top companies in terms of volume in PAN India while reaching up to 300 million pieces for the financial year in 2021. On top of that, online sales, which had more than doubled in the last few quarters and continuously showing this same growth trajectory, is expected to reach the Rs. 100 crores mark within the next three to four years. Under the name of Cozy World, EBOs are expected to accelerate and achieve this vision.