LUX INDUSTRIES 2023-24 Annual Report Analysis

Wed, 16 Oct

LUX INDUSTRIES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

LUX INDUSTRIES Income Statement Analysis

• Operating income during the year fell 2.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY24 as against 8.9% in FY23.
• Depreciation charges increased by 9.2% and finance costs decreased by 16.5% YoY, respectively.
• Other income grew by 3.8% YoY.
• Net profit for the year declined by 8.6% YoY.
• Net profit margins during the year declined from 5.8% in FY23 to 5.4% in FY24.

LUX INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,818	23,243	-2.4%
Other income	Rs m	202	210	3.8%
Total Revenues	Rs m	24,020	23,453	-2.4%
Gross profit	Rs m	2,129	1,933	-9.2%
Depreciation	Rs m	198	216	9.2%
Interest	Rs m	245	204	-16.5%
Profit before tax	Rs m	1,889	1,722	-8.8%
Tax	Rs m	514	466	-9.3%
Profit after tax	Rs m	1,375	1,256	-8.6%
Gross profit margin	%	8.9	8.3
Effective tax rate	%	27.2	27.1
Net profit margin	%	5.8	5.4

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LUX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an decrease of -2.2%.
• Long-term debt down at Rs 44 million as compared to Rs 263 million during FY23, a fall of 83.3%.
• Current assets rose 3% and stood at Rs 18 billion, while fixed assets rose 3% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 3%.

LUX INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,518	15,667	7.9
Current Liabilities	Rs m	6,155	6,020	-2.2
Long-term Debt	Rs m	263	44	-83.3
Total Liabilities	Rs m	21,188	21,894	3.3
Current assets	Rs m	17,659	18,245	3.3
Fixed Assets	Rs m	3,529	3,648	3.4
Total Assets	Rs m	21,188	21,894	3.3

LUX INDUSTRIES Cash Flow Statement Analysis

• LUX INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 32.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 40.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -910 million, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 242 million from the Rs -253 million net cash flows seen during FY23.

LUX INDUSTRIES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	1,808	2,396	32.5%
Cash Flow from Investing Activities	Rs m	-885	-1,244	-
Cash Flow from Financing Activities	Rs m	-1,177	-910	-
Net Cash Flow	Rs m	-253	242	-

Current Valuations for LUX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.8, an decline from the EPS of Rs 45.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,085.3, stands at 43.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 28.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	792.1	773.0
TTM Earnings per share	Rs	45.7	41.8
Diluted earnings per share	Rs	45.7	41.8
Price to Cash Flow	x	22.2	28.5
TTM P/E ratio	x	25.4	43.6
Price / Book Value ratio	x	3.9	2.7
Market Cap	Rs m	56,475	41,993
Dividends per share (Unadj.)	Rs	5.0	2.0

Ratio Analysis for LUX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY24, from 2.9x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 9.4x during FY24, from 8.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.0% during FY24, from 9.5% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 12.3% during FY24, from 14.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 6.7% during FY24, from 7.6% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.9	3.0
Debtors’ Days	Days	12	11
Interest coverage	x	8.7	9.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	6.7
Return on equity	%	9.5	8.0
Return on capital employed	%	14.4	12.3

To see how LUX INDUSTRIES has performed over the last 5 years, please visit here.

LUX INDUSTRIES Share Price Performance

Over the last one year, LUX INDUSTRIES share price has moved up from Rs 1,344.9 to Rs 2,085.3, registering a gain of Rs 740.4 or around 55.1%.

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for LUX INDUSTRIES and quarterly results for LUX INDUSTRIES)