Lux Industries (LUXIND) Q4 19/20 earnings summary

Executive summary

• FY2019-20 standalone revenue declined 1% to ₹1,207 crore, while profit after tax rose 24% to ₹126 crore amid a slowdown and the late-year COVID-19 disruption.

• Stronger cost control and working-capital discipline supported EBITDA growth, margin expansion, lower interest expense and debt repayment.

Financial highlights

• Standalone revenue from operations was ₹1,202.69 crore versus ₹1,208.68 crore; total income was ₹1,206.91 crore versus ₹1,217.88 crore.

• Standalone EBITDA was ₹192.52 crore versus ₹189.48 crore; PAT was ₹126.01 crore versus ₹101.31 crore, and EPS was ₹49.90 versus ₹40.12.

• Consolidated revenue from operations was ₹1,206.13 crore versus ₹1,207.05 crore; PAT was ₹122.48 crore versus ₹98.79 crore, and EPS was ₹48.66 versus ₹39.12.

• Raw-material costs rose 11.49% while total expenses fell 21.91%, primarily reflecting lower advertising and selling expenses.

Outlook and guidance

• FY2020-21 outlook: protect revenues at worst and grow them at best if the Indian economy recovers; any growth is expected to be profitable, with healthy margins and liquidity.

• Plans include further shortening the receivables cycle and using 100% of manufacturing capacity with improved efficiency and consistency.

• FY2020-21 innerwear demand could be flat, which management viewed as a positive outcome amid pandemic uncertainty and weak consumer spending.