Lux Industries shares rose 11 percent intraday on Wednesday to a new high of Rs 2,571.20 on the BSE after the company more than doubled net income of $ 90.64 billion thanks to healthy health in the March quarter (Q4FY21). Rs had reported operating income.
The company, one of India’s largest hosiery manufacturers and exporters, posted profits of Rs 41.49 billion in the fourth quarter of fiscal year 20. In the past three days, the BSE share rose 26 percent.
Management said the performance was due to the continued improvement in demand and consumption across the interior clothing industry. The company saw healthy traction in the economy and mid-premium categories and saw a gradual recovery in the premium and export segments.
However, management believes the April-June quarter (Q1FY22) will be relatively weak due to the pandemic and will gradually improve from the second quarter onwards. The economic recovery will be back on track in the next few months, as the company saw in the second and third quarters of fiscal year 21, management announced.
The company announced a greenfield expansion with an investment of 110 billion rupees. The investments will be completed in the next 12 to 18 months and financed through internal provisions. With this investment, management expects the company to gradually sell around Rs 400 billion.