Lux Industries, a maker of hosiery products for men and women, reported a good set of Q4 earnings. Saket Todi, senior VP of the company, spoke to CNBC-TV18 about the results.

"For FY20, our growth projection is around 15 percent. We had also given a vision of FY20-25 which was for a turnaround of Rs 5,000 crore at a group level and that equivalents to 15-16 percent growth every year," Todi said on Tuesday.

On the products front, he said, “This year our target is to launch the brand One8. We are already done with the prelaunch and preproduction work. In the coming months we will be launching this brand.”

Talking about the export revenue, Todi said, “FY19 we ended turnover of Rs 136 crore which is approximately around 30 percent growth and similarly for FY20 we are expecting 30 percent growth and we should be closing between Rs 170 and Rs 175 crore.”

“At the EBITDA level, margin should increase by 50-100 bps this year. Similarly, our product mix which is mainly the premium segment which is export and our premium brand ONN as well as One8 which would start the revenue this year. So the margin in that segment is much better and the percentage of the pie chart in the total sales is continuously increasing. The premium segment is increasing at a rate of 25-30 percent and the basic segment is increasing at a rate of 12-13 percent,” he added.

Talking about the cash flows, Todi said, “Our net cash flow has also gone up; last year it was at a negative amount of minus Rs 2 crore. This year it has gone up to plus Rs 185 crore. We have improved our working capital by a great margin, we have reduced our debtor days and we have reduced our inventory days. Therefore, our net cash flow has gone up."

First Published:Apr 23, 2019 12:20 PM IST