Lux Industries' share price surged 11 percent to hit a new high on Wednesday after the company's net profit more than doubled in the March quarter. The company reported a net profit of Rs 90.64 crore in Q4 on the back of healthy operational income. It had posted a profit of Rs 41.49 crore in the same period last year.

Share Market Live

NSE

The stock rose 11 percent to its new high of Rs 2,571.20 per share on the BSE.

The company's income from operations in the quarter under review grew 49 percent to Rs 601 crore as against Rs 404 crore in the corresponding quarter of the previous fiscal. EBITDA margins also improved by 507 bps to 21.45 percent versus 16.38 percent in the year-ago quarter.

For FY21, the net cash flows from operations more than doubled to Rs 388 crore via favorable movements in working capital components during the fiscal year 2020-21.

As per the management, the performance of the firm has been driven by improvement in demand and consumption across the innerwear industry. The company witnessed healthy traction for the economy and mid-premium categories and saw a gradual pickup in the premium and export segment.

However, they expect the April-June quarter (Q1FY22) to be relatively weak due to the pandemic and expect to improve gradually from the second quarter and sees economic recovery back on track in the next few months.

Lux Industries products include Men’s, Women’s & Kids Innerwear, Winterwear, Socks & Slacks for Women. The company has around 5,000 SKU’s (Stock Keeping Units) under various Brands and Sub Brands of LUX.

Catch market action here