Lux Industries surged almost 10 percent in trade after the company doubled its PAT in the March quarter. It also reported strong margins at 20 percent. Revenues too are up 48 percent and EBITDA is up 91 percent.

Speaking to CNBC-TV18, Saket Todi, President-Marketing of the company said that there will be an overall improvement in gross margin again.

“We expect gross margin to improve. If you were to compare the Q4 numbers, there is a huge increase in the gross margins and we believe that there would be again a gross margin improvement overall which would lead to a similar level of EBITDA margin in the coming year,” he said in an interview to CNBC-TV18.

He also expects the company to be able to save 100 basis points on advertising costs this year. “This year we are expecting to save around 100 basis points from advertising. It should be approximately 7 percent of the total sales for the advertisement budget. The expectation to improve the gross margins would be approximately 100-150 basis points,” he said.

The company is also seeing its market share going up in the organised sector. “The unorganized market is getting shifted to the organized market and we are trying to capture most of the shift,” he said.

The stock is up 33 percent this month and is up over 170 percent in the past one year.

Watch the video for more.

(Edited by : Abhishek Jha)