LUX Industries Limited — Earnings Release 2021

May 25, 2021

May 25, 2021.

To,	To,
The Secretary,	The Secretary,
BSE Limited,	National Stock Exchange of India Ltd.,
P.J. Towers,	Exchange Plaza, C-1, Block G,
Dalal Street,	Bandra Kurla Complex, Bandera (E),
Mumbai- 400 001	Mumbai — 400 051
Scrip Code: 539542	Symbol: LUXIND

Dear Sir,

Sub: Investor Release in respect of Audited Financial Results for the Quarter and Year Ended 31" March, 2021.

Enclosed please find the Investor Release in relation to the Audited Financial Results of the Company for the quarter and year ended 31* March, 2021.

This is for your information and record.

Thanking You

Yours faithfully, for LUX INDUSTRIES LIMITED

\ Z Cater Xi 'shy C

Smita Mishra (Company Secretary & Compliance Officer) M.No.: A26489

LUX INDUSTRIES LIMITED

PS Srijan Tech - Park, 10th Floor, DN - 52, Sector - V, Saltlake, Kolkata - 700 091, India. P: 91-33-4040 2121, F: 91-33-4001 2001, E: info@luxinnerwear.com

Regd. Office: 39 Kali Krishna Tagore Street, Kolkata - 700 007, India, P: 91-33-2259 8155, Website: www.luxinnerwear.com @ CIN :L17309WB1995PLC073053

Lux Industries reports strong Q4 FY21 & FY21 Results

Highest Ever Yearly Performance

• Revenue: Rs. 1,965 Crores

• EBIDTA: Rs. 393 Crores

• PAT:Rs. 269 Crores

			Lux Industries reports strong Q4 FY21 & FY21 Results
May 25, 2021, Kolkata - Lux Industries Limited, one of India's largest hosiery producer and exporter announced its Audited Financial Results for the Quarter and Full Year ended 315t March 2021.		> > PAT:Rs. 269 Crores >	Highest Ever Yearly Performance Revenue: Rs. 1,965 Crores EBIDTA: Rs. 393 Crores
Key Financial Highlights are as follows: Particulars
(Rs. in Cr) *	Q4 FY21	Q4 FY20
Income from Operations	601.31	403.52	49%	1,964.86	1,674.18	17%
EBITDA	128.96	66.08	95%	392.69	275.24	43%
EBITDA Margin (%)	21.45%	16.38%	507 bps	19.99%	16.44%	355 bps
Profit After Tax	90.64	41.49	118%	269.38	177.25	52%
PAT Margin (%) *Includes Other Income, On Consolidated Basis, also includes merged financials of JM Hosiery & Co. Limited and Ebell Fashions Private Limited	15.07%	10.28%	479 bps	13.71%	10.59%	312 bps
Commenting on the Industry Trends, Mr. Ashok Kumar Todi, Chairman said, "We are pleased to report a resilient performance for the quarter gone by. The performance has been driven by progressive improvement in demand and consumption across the innerwear industry. Despite the local lockdown due to the Covid-19 Pandemic and the resulting challenges during the quarter we witnessed healthy traction for our		Economy and Mid-Premium categories and saw a gradual pickup in our Premium and Export Segment.				While demand remains strong, the supply situation over the next few months is likely to be adversely impacted by

Key Financial Highlights are as follows:

Commenting on the Industry Trends, Mr. Ashok Kumar Todi, Chairman said,

proactive and preventive measures taken by the management to ensure employee safety and contain the spread of Covid-19 might have some impact on Q1 FY22 performance.

We will remain agile to address these challenges and drive consistent, competitive, and cash accretive growth over the medium to long term. Working capital has shown a declining trend in the FY ended 2021 despite of revenue growth. The innerwear industry is constantly evolving, and we have always been at the forefront of this evolution, having implemented innovative ways of offering differentiated products in the market by undertaking breakthrough marketing and brand promotion activities.

Going forward, we believe that there will be a pick-up in consumption as the vaccination rate improves and the local restrictions start to ease out which should build positive momentum for the entire industry. The economic recovery will be back on track in the next few months as we had witnessed in Q2 and Q3 of FY21. These factors complemented by our efficient business model will give us sustained growth momentum in the future and as one of the leading players in this space, we are sure to benefit the maximum from it.

In Anticipation of the improving demand and making ourselves future-ready, we have announced a greenfield expansion with a capex of Rs. 110 crores. We have already identified a land parcel with a construction area of around 4,60,000 sq. ft. Of this area, around 20% to 30% will be used for manufacturing units and balance for warehousing, storage, and finishing facilities.

The capex will be completed over the next 12-18 months and will be funded through internal accruals. With this investment, we are expecting to generate an incremental sale of around Rs. 400 crores."

Commenting on the Results, Mr. Pradip Kumar Todi, Managing Director said,

"| am glad to share that during Q4 FY21 we have completed the merger of J. M. Hosiery & Co. Limited (JMHL) and Ebell Fashions Private Limited (EFPL) with the Company. The merger of these two companies with Lux Industries will strengthen our presence across geographies and product categories and bring in a lot of operational and financial synergies.

Our company has posted robust performance for the year ended 31% March 2021 despite Covid-19 Pandemic induced challenges. Also, with the completion of merger, we have reported the merged financials for FY21 as well as FY20. Our revenues grew by 17% to Rs. 1,965 crores. Our EBITDA and PAT were at Rs. 393 crores and Rs. 269 crores respectively, registering a stellar growth of 43% and 52% respectively. Our EBITDA Margins have seen a significant improvement by 355 basis points to 19.99% majorly on account of an increased share of value-added products and

overall cost efficiency measures including our advertisement expenditure. We have also seen a healthy improvement in PAT Margins by 312 basis points to 13.71%.

We continue to endeavour healthy profitability ratios by focusing on better product mix and rational cost optimisations. For the year gone by our advertising expenses stood at Rs. 106 Crores which is approximately 5.4% of total income in line with our guidance of 4%-5% of our revenue. We expect to gradually reinstate it back to 7-8% of our revenue from the current financial year.

We are constantly committed to bringing in Innovation and taking newer initiatives, one such new endeavour is the launching of our Exclusive Brand Outlets — "Cozy World," where we aim at showcasing and retailing the entire portfolio of our brands under one roof. Currently, we are operating 11 EBOs and are present across 160 large format stores and 2 lakhs plus multi-brand outlets. We also have a strong presence in multi-brand outlets and Large format stores with plans to increase more presence across Tier I, Il, and Ill markets in the next 2-3 years. We also plan to open 150 EBOs gradually.

We believe with the combination of vaccination drives, resultant demand revival due to gradual lifting up of lockdown restrictions, growing tractions in our E-commerce sales, wider product range post-merger backed by right managerial and financial decisions, the company would be able to tap into the tremendous growth potential the industry has to offer.

The Company is having a single point agenda on investment in People and IT to make organization more professionalize, corporate governance, and to have adequate Internal Controls. Several measures are taken like: appointment of ELP as part of compliance consultant, Hiring of New CFO — Saurabh Bhudolia, Marketing head-Surendra Bajaj, Bibek Maity as ClO, and several other leadership hiring's. The Journey started to have IT enabled solution to integrate the system end to end between company till end Customer."

Commenting on the Results and way forward, Mr. Saurabh Bhudolia, CFO said,

During the FY 2021, company has generated an operating cash flow of Rs. 389 Crore out of which around Rs. 66 crores has been used for Capex and around Rs. 112 crores to repay the borrowings, on the closing date the company is net cash positive by Rs. 138 crores and Gross Cash and Cash Equivalent is Rs. 261 crores. Our working capital days reduced to 122 days as compared to 160 days; a significant improvement by 38 days over last year FY 2020. Our prudent financial decisions have helped us reduce our debt and become a net cash company.

About Lux Industries Limited

Safe Harbor Statement

For further information, please contact
-----------------------------------------	--

	Considering the current pandemic situation, The Board of Directors of the Company has decided to conserve cash and
	postponed the decision to declare any dividend for the financial year ended 31st March 2021. Looking at how the
pandemic situation will evolve the Board of Directors would consider rewarding the shareholders in due course of time.
	Company is also accelerating its growth driver via way of new expansions to capture the market share Women's as
	well as Kids segment and also to have the presence felt in Southern part of India. Online and EBO's are the new
offerings which will again help to accelerate and achieve the vision.
About Lux Industries Limited the globe with exports to 46+ countries	Lux Industries Limited, incorporated in 1995 is one of the largest players in the hosiery business having a market share of approximately +15% of the organised men's innerwear industry. Products include Men's, Women's & Kids Innerwear, Winterwear, Socks & Slacks for Women in varied colours and designs. The company has ~5,000 SKU's under various Brands and Sub Brands of LUX. With focus on growing exclusive retail outlets and in providing customers with a seamless buying experience, the company's products are available in ~4,50,000 retail points spread across India. LUX has a presence across
Safe Harbor Statement	Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and
	uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect
actual results changed assumptions or other factors.
	For further information, please contact
Company:	Investor Relations Advisors:
Lux Industries Limited	Strategic Growth Advisors Pvt. Ltd.
CIN: L17309WB1995PLC073053	CIN: U74140MH2010PTC204285
Mr. Saurabh Bhudolia saurabh.bhudolia@luxinnerwear.com	Mr. Jigar Kavaiya jigar.kavaiya@sgapl.net
	+91 9920602034
www.luxinnerwear.com	www.sgapl.net