Lux Industries (LUXIND) Q4 15/16 earnings summary

Executive summary

• FY16 total income rose 3.52% YoY to ₹941.16 crore; EBITDA increased 16.52% to ₹94.86 crore and net profit rose 13.51% to ₹51.34 crore.

• Premiumization, cost control and integrated manufacturing supported margin expansion despite sluggish macro conditions and moderate production and sales growth.

• FY17 revenue growth of 8–10% was expected, with the Dankuni facility and broader product and distribution reach supporting growth plans.

Financial highlights

• Total income was ₹941.16 crore versus ₹909.14 crore in FY15; PBT rose 15.86% to ₹78.68 crore and PAT grew 13.51% to ₹51.34 crore.

• EBITDA reached ₹94.86 crore, up 16.52% YoY; EBITDA margin improved 112 bps to 10.08%, while EPS rose to ₹101.65 from ₹89.55.

• Cash profit increased to ₹82.89 crore from ₹63.78 crore; five-year CAGRs were 12.57% for gross income, 33.48% for EBITDA and 43.73% for PAT.

• Gross income growth was 3.52%, while EBITDA margin benefited from premiumization and manufacturing costs fell to 81.87% of sales from 84.2%.

Outlook and guidance

• FY17 revenue growth was forecast at 8–10%, with a target to exceed ₹1,000 crore; the Directors’ Report separately cited expected topline growth of 10%.

• Dankuni operations were expected to improve efficiency and contain costs; the new integrated facility was expected to come fully on-stream by September 2016.

• Growth priorities included premiumization, wider product and brand portfolios, expansion in existing markets and deeper distribution in Tier III and IV towns.