BackLux Industries shares drop over 3% after I-T dept raids premises, alleges tax evasion of ₹200 crore
Lux Industries confirmed that the I-T Department is conducting searches at its premises. Lux Industries also said that it is extending full support. 'The survey is yet to be concluded and we are unable to make assessment of its impact,' said Lux Industries.
PremiumLux Industries shares declined over 3 per cent on Friday, September 22, after reports said that the Income Tax (I-T) department conducted searches at company's headquarters in Kolkata.
The I-T Department has reportedly alleged a tax evasion of ₹200 crore by the company. Raids were conducted in multiple cities at premises linked to Lux Industries. The search is underway in multiple cities at premises linked to the company including Kolkata. Offices and residences of top officials are also covered in the raids, news agency ANI reported citing sources.
The investigation is aimed at uncovering any irregularities related to the company's financial affairs. Lux Industries confirmed that the I-T Department is conducting searches at its premises. The company also said that it is extending full support.
“We would like to submit that survey is being conducted at our premises and the company is extending its full cooperation to the authorities. We would like to further inform that as the survey is yet to be concluded we are unable to make assessment of its impact. Once the survey concludes, the company will update the stock exchanges, in case there is any material impact resulting from the above survey,'' said Lux Industries in a regulatory filing to the stock exchanges.
On Friday, shares of Lux Industries settled 3.22 per cent lower at ₹1,471.25 after hitting an intra day low of ₹1,451 apiece on the BSE. The company commands a market cap of ₹4,424.30 crore, according to BSE data.
The company’s net profit fell 57 per cent to ₹44 crore in the April-June quarter of fiscal 2023-2024. The revenue from operations in the same period increased 23 per cent to ₹715 crore.
"FY23, the hosiery industry faced multiple challenges arising from various factors. These challenges encompassed reduced on-ground demand, disruptions in the supply chain, and volatility in raw material prices, all contributing to decreased volumes and profit margins. These obstacles are expected to have some ripple effect even in the first half of FY24, as still there is some ongoing difference between domestic and international cotton prices,'' said Ashok Kumar Todi, Chairman, Lux Industries.
Lux Industries - formerly known as Biswanath Hosiery Mills - manufactures and exports innerwear for men, women, and kids. It offers hosiery products. The company was founded in 1957 and is based in Kolkata with additional offices in Kolkata, Delhi, Agra, Indore, Mumbai, Ludhiana, Jaipur, and Roorkee, as well as in the Middle East, Europe, and Africa.
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