EBITDA improved by 44% to Rs 141 crore in Q2 FY22 from Rs 97.67 crore in Q2 FY21. EBITDA margin in the second quarter was 22.35% as compared with 19.36% reported in the same period last year.

Ashok Kumar Todi, Chairman said: “Lux being one of the leading organised players in the industry has enhanced its operating efficiencies and was well poised to grab the market share across the product categories. Even during these challenging situations, we had a fill rate of 95% against an industry average of 80% which is a testament to our well penetrated distribution network and strategic relationships.

During the quarter gone by we have also witnessed significant green shoots in demand due to the lifting of lockdown restrictions in most states, accelerated vaccination drives, growth in e-commerce, and resumption in the global supply chain.”

Pradip Kumar Todi, managing director, said that the company has reported a strong performance in the first half of FY22 with revenues growing by 28% year on year driven by healthy demand traction across all product categories. The rising adoption of branded innerwear products across the company's customer base has led to its revenue from economy and mid-premium categories increasing by 16% & 25% respectively as compared to the same period last year. The company's Premium category is also witnessing strong growth in demand and has reported a revenue of Rs 144 crore, a stellar growth of 83% year on year.

The company's broad-based growth was accompanied by a rise in our EBITDA & PAT margins at 22.05% and 15.57%, respectively, which is one of the highest in the industry. The company's plan to incur a capital expenditure of Rs 110 crore is on track.

Saurabh Bhudolia, CFO said: “We expect to maintain net cash positive status even after incurring the Capex. As on 30th September 2021, the company's gross cash and cash equivalent balance stood at Rs166 crore while the debt-equity ratio stood at 0.14 as against 0.16 in 30 September 2020 which signifies our constant endeavour to deleverage the balance sheet and create strong liquidity buffers.”

Lux Industries is one of the largest players in the hosiery business having a market share of approximately 15% of the organized industry. The company's products include men's, women's & kids innerwear, winterwear, socks & slacks for women in varied colours and designs.