Linc Limited · NSE:LINC
Linc — Q1 FY25 Earnings Presentation
19 slides from Linc's earnings presentation, Aug 1, 2024
Slide 1: Introducing India's First Guilt-Free Pens
pentonic INTRODUCING INDIA'S FIRST GUILT-FREE PENS Every plastic pen carries the guilt of being a polluter. So we decided to fight back. Pentonic is now making pens that consist of 75% recycled plastic. Talk about having a clean sheet. PeNCONICc & 75%
Slide 2: Q1 FY25 Earnings Presentation
Q1 FY25 EARNINGS PRESENTATION Linc Limited (formerly Linc Pen and Plastics Limited) NSE : LINC BSE : LINC Bloomberg : LINC:IN 2
Slide 3: Safe Harbour Statement
Safe Harbour Statement This presentation may contain certain “forward-looking statements” within the meaning of applicable securities laws and regulations, which may include those describing the Company’s strategies, strategic direction, objectives, future projects and/or prospects, estimates etc. I
Slide 4: Inside This Presentation
Inside This Presentation 1 2 3 4 5 Operational Quarterly Management Key About Us Profit & Commentary Highlights Highlights 05 - 06 Loss 07 08 - 12 13 - 14 15 6 7 8 9 Focus on Shareholding Thank Shareholder Why Linc? Pattern You Value Creation 18 17 19 16 4
Slide 5: About Us
About Us Linc Ltd. is one of India’s largest & oldest writing instrument companies with national and international presence. We have a strong and extensive network across India along with Southeast Asia, Middle East, USA, UK, Europe, South America, & Africa. ➢ Among Top 3 brands in India for Writing
Slide 6: About Us
About Us Market Share* of 6.6% 2,022 Lacs Writing Instrument Segment No. of Pens sold in Q1 FY25 >50 Countries 18.0% International Presence Export revenue % 39.6% 2,52,639 Pentonic Share in Revenue Touch Points Q1 FY25 Financial Metrics Revenue From Operations: ₹ 13,011 Lacs Profit After Tax#: ₹ 843
Slide 7: Management Commentary
Management Commentary ” We are pleased to state that we have achieved a quarterly Operating Income of ₹13,011 Lacs, marking a 16.3% growth year-over year. Pentonic delivered a 28.6% year-on-year revenue growth in Q1 FY25, resulting in Pentonic contributing 39.6% to our company’s topline in the first
Slide 8: Key Highlights
Key Highlights All numbers in ₹ Lacs. Operating Income Gross Profit Operating EBITDA Profit after Tax# 50,785 13,011 15,909 4,065 5,642 1,425 3,421 843 1,676 4,578 Q4 14,080 1,155 1,393 Q3 12,396 3,903 756 Q2 13,122 3,811 1,259 771 4,065 1,425 Q1 11,188 13,011 3,616 1,315 739 843 FY24 FY25 FY24 FY25
Slide 9: Key Highlights (Cont.)
Key Highlights (Cont.) ₹ Lacs Operating Gross Operating Profit Before Profit After Cash Income Profit EBITDA Tax Tax Profit1 Q1 FY25 13,011 4,065 1,425 1,113 843 1,221 Growth YOY 16.3% 12.4% 8.4% 10.8% 14.2% 9.8% Growth QOQ (7.6%) (11.2%) (15.0%) (28.6%) (27.0%) (20.1%) Margin2(%) 31.2% 11.0% 8.5% 6
Slide 10: Key Highlights (Cont.)
Key Highlights (Cont.) ₹ Lacs Particulars 30-Jun-23 31-Mar-24 30-Jun-24 ROE(%)2 ROCE(%)2 Net Worth 18,452 20,585 21,375 23.1% 21.9% 18.0% Gross Debt - 692 586 19.6% 16.3% 16.0% Cash & Cash Equivalent 1,560 1,456 3,302 Net Debt (1,560) (765) (2,716) Jun'23 Mar'24 Jun'24 Jun'23 Mar'24 Jun'24 Net Fixed
Slide 11: Key Highlights (Cont.)
Key Highlights (Cont.) ₹ Lacs Writing Instruments Other Products Writing Instruments Other Products Revenue Own Brands Licensed Brands Own Brands Licensed Brands Pentonic Linc & Others Uni-Ball Pentonic Linc & Others Deli Q1 FY25 5,106 4,778 1,936 143 770 526 Sales Contribution (%) 38.5% 36.0% 14.6%
Slide 12: Key Highlights (Cont..)
Key Highlights (Cont..) ₹ Lacs Writing Instruments Trade Channel Other Products Revenue General Trade Corporate Modern Trade E-Commerce Exports Q1 FY25 7,304 1,771 1,297 501 2,387 Sales Contribution (%) 55.1% 13.4% 9.8% 3.8% 18.0% Q4 FY24 7,180 2,610 678 447 3,414 Sales Contribution (%) 50.1% 18.2%
Slide 13: Operational Highlights
Operational Highlights Wider Penetration across India Focus on brand building Break-up of Region-wise Touch Points – Q1 FY25 3.1% 48,676 50,785 39,996 2.9% 36,694 35,496 2.8% 2.3% ₹ LACS 25,666 22% 24% East India 1.7% 1.5% North India 1.6% 13,011 West India 539 1,242 414 602 1,380 1,179 381 29% 25%
Slide 14: Operational Highlights (Cont..)
Operational Highlights (Cont..) Growth in average realization of Pens (Rs)1 Evolving Company GP Margins 5.53 5.62 5.57 5.62 5.80 5.83 5.76 31.2% 31.3% 31.2% 5.67 5.61 5.42 4.90 23.8% ₹ 4.32 4.52 21.8% 3.96 20.3% 3.65 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY24 Q1 FY25 FY18 FY19 FY22 FY 23 FY24 Q1 FY25
Slide 15: Quarterly Profit & Loss
Quarterly Profit & Loss ₹ Lacs Particulars Q1 FY 25 Q1 FY 24 YoY Change Q4 FY 24 QoQ Change FY 24 Operating Income 13,011 11,188 16.3% 14,080 (7.6%) 50,785 Gross Profit 4,065 3,616 12.4% 4,578 (11.2%) 15,909 Gross Profit (%) 31.2% 32.3% (108 bps) 32.5% (128 bps) 31.3% Operating EBITDA 1,425 1,315 8.
Slide 16: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation Net Cash from Operating Activities Vs Dividend Payout 52% 4,723 • NCOA¹ continues to be strong in Jun’24 4,338 3,835 3,801 ₹ LACS 3,317 • Consistent Dividend Pay-out track record (Other than Covid 33% 2,741 20% 22% years due to cash conservation) 12% 2,044 744 744
Slide 17: Shareholding Pattern
Shareholding Pattern As on June’24 Promoters Mitshubishi Pencil Co Ltd IEPF 24.9% NRI, FII, AIF etc. Other Public 1.9% 0.2% 59.5% 13.4% 17
Slide 18: Why Linc?
Why Linc? Focus on Geographic Inroads into Strong Consistently Rapidly Premiumization, Expansion; Adjacent Balance Sheet endeavors to expanding consistently Focusing on Categories; with negative practice good distribution augmenting increasing its widening net Corporate network Added the contributio
Slide 19: Thank You
Thank You For further details please contact Director Finance & CFO Investor Relations Advisor N.K.Dujari Sanjeev Sancheti Email: investors@linclimited.com Email: ir@uirtus.in Landline: +91 33 68262100 Website: www.uirtus.in 19