22-Sep-2023
2 mins read
Lux Industries, a key player in the innerwear and hosiery industry, is facing turbulent times as its shares witnessed a significant drop of 3.18 per cent, trading at Rs 1,471 at 14:07 IST. This decline comes in the wake of the Income Tax department conducting raids at the company’s facilities in Kolkata, prompted by allegations of tax evasion exceeding Rs 200 crores. These searches are being carried out in multiple cities linked to Lux Industries.
Official Confirmation and Ongoing Cooperation
Lux Industries officially confirmed these developments in response to reports from CNBC-TV18, emphasising their complete cooperation with the Income Tax authorities. In a regulatory filing, Lux Industries stated, “In this regard, we would like to inform you that a survey is currently being conducted at our premises, and the company is providing complete cooperation to the authorities.”
Impact Uncertainty and Future Updates
Lux Industries confirmed that the IT Dept is conducting searches at its premises. Lux Industries also said that it is extending full support. “The survey is yet to be concluded and we are unable to make an assessment of its impact,” said Lux Industries.
Financial Results
The vest manufacturer witnessed a significant downturn in financial performance, with EBITDA declining by 52% and a 59% drop in post-tax profit. They allocated 8% of their revenues to brand spending, totalling Rs 185 crores in FY 2022-23, marking a 21% increase compared to the previous year. According to their annual report, the company’s products are available in 47 countries, and exports contributed 8% to their FY 2022-23 revenues. Export figures rose by 14.51% to H181.71 crores during the year. For the latest news and updates, you can visit News9 Live and explore more company-related news.
About Lux Industries
Lux Industries Ltd., founded in 1957 as Biswanath Hosiery Mills, is a leading Kolkata-based hosiery producer. With an annual turnover of over Rs 2,000 crore, it employs 36,000+ workers and exports to 46 countries. The company offers a wide range of products, including innerwear, winter wear, socks, and women’s leggings. It’s listed on the NSE (LUXIND) and BSE (539542) stock exchanges with a market capitalisation of Rs 5,088 crore as of November 2022. In FY 2022, it reported an audited total income of Rs 2,289.99 crore, up from Rs 1,950.76 crore in the previous fiscal year. Q3 2022 unaudited consolidated total income was Rs 638.32 crore, and Q2 2022 was Rs 571.69 crore.