Lux Industries (LUXIND) Q4 11/12 earnings summary

Executive summary

• FY12 topline grew 5.17% to ₹547.54 crore, while profit after tax rose 68.94% to ₹14.14 crore despite an economic slowdown, excise duty and a strike lasting nearly two months.

• Premium products contributed 35–40% of revenue; investment in production technology, product development and market reach supported improved profitability.

Financial highlights

• Gross income was ₹547.54 crore versus ₹520.64 crore in FY11; revenue growth was 5.17% YoY.

• Profit before depreciation, interest and tax rose 46.18% to ₹32.73 crore; PBT increased 64.72% to ₹20.59 crore.

• PAT increased to ₹14.14 crore from ₹8.37 crore; reported basic and diluted EPS were ₹28.00 versus ₹16.58.

• Operating revenue before excise was ₹568.02 crore; excise duty was ₹20.54 crore, leaving net operating revenue of ₹547.49 crore.

Outlook and guidance

• FY13 revenue outlook depended on higher exports, premium-product sales and deeper domestic penetration; exports were targeted at ₹127 crore.

• A new facility requiring about ₹100 crore investment was expected to commission by October 2013; expanded capacity was expected to support topline growth over the following two years.

• Revenue of ₹740 crore was projected for FY15, with 100 exclusive ONN outlets targeted by 2015.

• Plans included two new premium brands, further export-market expansion and continued development of both premium and basic products.