Conference Call with Lux Industries Management and Analysts on Q1FY23 Performance and Outlook. Listen to the full earnings transcript.
Apparels & Accessories firm Lux Industries announced Q1FY23 Result : Revenue: Rs. 571.69 crores, growth of Rs 36% YoY Whereas EBIDTA and PAT stands at Rs. 77.80 crores & Rs. 49.99 crores respectively. Commenting on the Industry Trends, Mr. Ashok Kumar Todi, Chairman said, "Over the years Lux has been able to leverage the power of its brand which is evidently seen in its consistent growth in revenues and profitability. For the quarter ended 30" June 2022, the Company has reported a robust revenue growth of 36% over the same period last year. This growth in revenues was largely fuelled by improving traction of power brands, particularly ‘ONN’ and ‘Lyra’ coupled with its legacy brand ‘Lux Cozi’ which forms a part of premium and mid-premium portfolio. For the quarter gone by, ‘ONN’ has reported a net sale of Rs. 30 Crores which grew by 94% over the same period last year while revenue from the brand ‘Lyra’ stood at Rs. 97 Crores which grew by 136% over same period last year. The Company’s latest offering of lingerie product range under the brand ‘Lyra’ has been gaining good response from the market helping it to evolve from a leggings centric brand to a multi-product, multi-category women's wardrobe brand. Additionally, we have seen gradual shift towards online purchases largely driven by millennials. This has enabled Lux to create new channels for engaging with the end users and offer a range of more than 100 products under 15+ brands ensuring relevance across ages, genders, geographies, and seasons leading to enhanced value of the brand. As one of the biggest players in the branded innerwear industry, Lux has been proactive about the changing consumer preferences and is responding by creating innovative & trendy product lines and maintaining a healthy balance between online and offline channels.” Result PDF
Conference Call with Lux Industries Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.
Textiles company Lux Industries announced Q4FY22 results: Revenue: Rs 2,312.92 crore, growth of 18% YoY EBIDTA: Rs 490.27 crore, growth of 25% YoY PAT: Rs 338.06 crore, growth of 25% YoY Commenting on the Industry Trends, Mr. Ashok Kumar Todi, Chairman said, "I am pleased to share that the company has reported strong growth for FY22, this growth was largely driven by our power brands, especially ‘ONN’ and ‘Lyra’, and well supported by ‘Lux Cozi’ the brand which has delivered consistent growth over years. For the first time ever, our premium brand ‘ONN’ has surpassed a revenue mark of Rs. 100 crores, while ‘Lyra’, our women's flagship brand, has surpassed a revenue mark Rs. 300 crore. For the FY ended March’22 “ONN” has reported a net sale of 120 Crore with an overall growth of 52% over last year March’21. With an increased penetration and having balanced focus between Outer and Innerwear both, “ONN” has created its own visibility in the Men’s premium wear segment. During the quarter, the Company has also launched its lingerie product range under the brand ‘Lyra’ and have done targeted television campaign promoting the same. With this launch the Company is transitioning ‘Lyra’ from a single product category (mostly leggings) to a multi-product, multi-category women's wardrobe brand. Increased penetration in the women wear segment has not only helped Lux to create brands across genders but will also help in increasing the overall sales & profitability. The innerwear sector is becoming more than a necessity, with a shift toward aspirational buying. Over time, we've seen a shift in consumer buying habits and preferences, with a rising desire for mid and premium category products. There is a noticeable shift away from buying simple white vests towards a wider range of buying preferences, with patterns, textures, colours, and fabrics seeing increased realisations. Lux being one of the largest players in the branded innerwear segment has continuously monitored the market pulse and responded by developing innovative product lines in the mass, mid, and premium categories. With resilient demand scenario, our wide product portfolio across all price points and expansion into women wear segment, we are optimistic of higher growth trajectory going forward” Result PDF
Conference Call with Lux Industries Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Other Apparels & Accessories company Lux Industries declares Q3FY22 result: Revenue: Rs. 1,719.96 Crores, growth of 26% YoY EBIDTA: Rs. 377.20 Crores, growth of 43% YoY PAT: Rs. 264.96 Crores, growth of 48% YoY Commenting on the Industry Trends, Mr. Ashok Kumar Todi, Chairman said, “Over the years the Innerwear industry has evolved to bring in multiple opportunities and possibilities of growth, consumers especially the millennials are shifting the conventional consumer request of ‘Kuch achcha-sasta dikhaiye!’ to ‘Kuch bachiya chaahiye!’. They are becoming more aware of the options and look for a high fashion factor as well as comfort, hygiene, brand image, and reasonable rates. This approach has largely graduated the business from unorganised to organised, and we at Lux are confident in our ability to carve out an increasing share and outperform the sector. We've been rapidly changing and expanding our relevance as a family brand by offering something for everyone in the family through our diverse brand portfolio. We constantly communicate with our customers on a regular basis through various marketing initiatives and promotions to familiarise them with our brands and to inform them about the quality and comfort they can expect at competitive pricing. These initiatives have aided us in consistently achieving results that are considerably above industry averages.” Result PDF
Conference Call with Lux Industries Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Financial Highlights: profit crosses Rs. 100 Crore Mark Revenue of Rs. 630.86 Crores, Y-o-Y growth of 25% EBIDTA of Rs. 141.00 Crores, Y-o-Y growth of 44% PAT of Rs. 100.04 Crores, Y-o-Y growth of 50% Commenting on the Industry Trends, Mr. Ashok Kumar Todi, Chairman said, “Over the years the innerwear industry has graduated from a functional category to a fashionable one. Consumers now have personal preferences in colour, design, and style while choosing innerwear products. The innerwear industry which was largely been a part of the unorganised sector; is now shifting towards the organised branded players. This shift has especially accelerated after the pandemic as many of the unorganised players got affected due to operational, liquidity, and supply chain related issues. Similarly, Lux being one of the leading organised players in the industry has enhanced its operating efficiencies and was well poised to grab the market share across the product categories. Even during these challenging situations, we had a fill rate of 95% against an industry average of 80% which is a testament to our well penetrated distribution network and strategic relationships. During the quarter gone by we have also witnessed significant green shoots in demand due to the lifting of lockdown restrictions in most states, accelerated vaccination drives, growth in e-commerce, and resumption in the global supply chain. Going ahead, we will stay focused on our capacity enhancement along with several other strategic initiatives to increase operational efficiencies, which will help us deliver differentiated products in the market and ensure complete satisfaction and utmost comfort for every consumer by creating top notch products.” Commenting on the Results, Mr. Pradip Kumar Todi, Managing Director said, “We have reported a strong performance in the first half of FY22 with our revenues growing by 28% year on year driven by healthy demand traction across all our product categories. The rising adoption of branded innerwear products across our customer base has led to our revenue from economy and mid-premium categories increasing by 16% & 25% respectively as compared to the same period last year. Our Premium category is also witnessing strong growth in demand and has reported a revenue of Rs. 144 crores, a stellar growth of 83% year on year. Our broad-based growth was accompanied by a rise in our EBITDA & PAT margins at 22.05% and 15.57% respectively which is one of the highest in the industry. Our plan to incur a capital expenditure of Rs. 110 crores is on track. We will continue the journey of investing in innovation and capability building which will yield us gains in market share and operating model efficiency. With our differentiated domain expertise along with the waning pandemic and improvements in supply chain conditions, we believe all three categories, Economy, Mid-Premium and Premium, are well-positioned for sustained growth in H2FY22.” Commenting on the results and way forward, Mr. Saurabh Bhudolia, CFO said, “Over the years the Company has invested in a basket of 16 brands; which enjoy unaided brand recall for comfort, innovation, and a superior value proposition. This brand strength has translated into growing margins and a net cash surplus position. We expect to maintain net cash positive status even after incurring the Capex. As on 30th September 2021, the company’s gross cash and cash equivalent balance stood at Rs.166 crores while the debt-equity ratio stood at 0.14 as against 0.16 in 30 September 2020 which signifies our constant endeavour to deleverage the balance sheet and create strong liquidity buffers. The Board of Directors at its meeting held has declared payment of interim dividend of 600% i.e. Rs. 12/- per equity share. This is in line with our constant endeavour to reward equity shareholders of the Company. Going forward, we expect positive momentum in our revenues to continue and will continue to adhere to the highest of ethical standards and transparency in all business dealings and transactions.” Result PDF