The Income Tax Department has initiated a series of raids on Lux Industries following allegations of tax evasion exceeding Rs 200 crore. The shares of the company declined over 3 percent on Friday, September 22, the the wake of the I-T searches.

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According to sources, these raids are currently underway across various cities, with a primary focus on locations associated with Lux Industries in Kolkata.

High-ranking officials' residences and offices are also covered in the operations, the sources added.

Lux Industries confirmed that the department is conducting the raids on their premises, and that they will update the stock exchange once the searches conclude.

"We would like to submit that survey is being conducted at our premises and the company is extending its full cooperation to the authorities. We would like to further inform that as the survey is yet to be concluded we are unable to make an assessment of its impact. Once the survey concludes, the Company will update the Stock Exchanges, in case there is any material impact resulting from the above survey," LuxX industries said.

Lux Industries Ltd, formerly known as Biswanath Hosiery Mills, is an Indian underwear manufacturing company headquartered in Kolkata, West Bengal.

Over the past year, Lux Industries Ltd has experienced a downward trend in its stock performance. The stock has fallen 4 percent in the past week, 5 percent in the last three months, and a substantial 20 percent over the course of the year.

In comparison to the April-June quarter of the financial year 2022-23, the company's profits in the April-June quarter of the financial year 2023-24 have seen a 64 percent slide.

The company's profits in the April-June quarter dropped from Rs 51.5 crore to Rs 18.3 crore year-on-year, while its income decreased from Rs 567 crore to Rs 523 crore.

The earnings before interest, taxes, depreciation, and amortisation (EBITD) for Lux Industries plummeted by 1,300 basis points YoY to 6 percent during the April-to-June quarter.

(Edited by : Shoma Bhattacharjee)