Lux Industries (LUXIND) Q4 12/13 earnings summary

Executive summary

• FY2012-13 revenue from operations and other income reached ₹69,189.08 lakh, up 26.36% YoY; net profit was ₹2,034.64 lakh, up ~44%.

• Growth was attributed to wider export markets, gains in domestic market share, new products, operational efficiency and cost management.

• Lux brand sales exceeded ₹700 crore; management said revenue could exceed ₹1,000 crore shortly.

Financial highlights

• Revenue from operations, net of excise, was ₹69,180.60 lakh versus ₹54,748.70 lakh in FY2011-12; other income was ₹8.47 lakh.

• Profit before depreciation, interest and tax was ₹4,483.99 lakh, up 36.99%; PBT was ₹2,971.54 lakh, up 44.29%.

• PAT rose to ₹2,034.64 lakh from ₹1,414.08 lakh; EPS was ₹40.28 versus ₹28.00.

• Cash flow from operations was negative ₹4,021.26 lakh, versus positive ₹1,610.73 lakh in FY2011-12; year-end cash and equivalents were ₹445.74 lakh.

Outlook and guidance

• Revenue had grown at ~24% CAGR over FY2008-13; rising incomes, urbanisation, underpenetration and premiumisation were cited as growth drivers.

• Management targeted revenue above ₹1,000 crore shortly and planned ~100 exclusive ONN outlets by 2015.

• Priorities included product quality, process innovation, premium offerings and higher market share across product segments.