Lux Industries: Winter sales growth expected at 20-25%
A buzzing stock in winter months is Lux Industries, manufacturer of premium inner wear like thermals etc. The stock is up 16 percent this month. Udit Todi, president-strategy of Lux Industries shared his views and outlook about the winter sales in an interview with CNBC-TV18.
A buzzing stock in winter months is Lux Industries, manufacturer of premium inner wear like thermals etc. The stock is up 16 percent this month. Udit Todi, president-strategy of Lux Industries shared his views and outlook about the winter sales in an interview with CNBC-TV18.
“We think the current nine months were challenging but as of now we feel that the economy is bottomed out and we can already see the green ticks coming up and the demand is on the better side now. The demand is picking up,” he said.
“This year the winter season was phenomenal, it was a record winter season for the entire industry per se and for us as well since we are slightly bigger on winter of our percentage share, for us it was very great."
Todi said that there is optimism for better growth in the coming months.
“In terms of half yearly figures, we have seen 14 percent growth year-on-year (YoY) but the market was challenging. So we believe that in the coming few months the growth should be better. We should be able to maintain between 12 percent and 15 percent growth target range. The growth in the winter segment was higher. So we are expecting 20-25 percent growth rate as well as the premium segment Onn has been doing pretty well. So we should be looking at 20 percent growth rate.
“Winterwear is roughly between 13 percent and 15 percent of our sales."
On capacity expansion, he said, “We believe that our existing capacities are enough for us for the next two years so we are not looking for any major capex going forward. It will only be marginal incremental capex.
“Currently cotton prices are slightly on the higher side and we believe it is just a cyclical thing. They were pretty low last few quarters so this year it is picking up."
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