Slide 1: Cover letter to stock exchanges: Earning Presentation
2nd November 2023 The Listing Department, The Manager The Manager, The Calcutta Stock The Department of The Listing Department, Exchange Ltd. Corporate Services, National Stock Exchange of 7, Lyons Range, BSE Limited, India Limited, Kolkata – 700001 P. J. Towers, Exchange Plaza, Dalal Street, Bandra
Slide 2: Q2 FY24 Earnings Presentation
Q2 FY24 EARNINGS November 2023 PRESENTATION. NSE : LINC BSE : LINC Linc Limited Bloomberg : LINC:IN (formerly Linc Pen and Plastics Limited) 1
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.
Slide 4: Inside This Presentation
Inside This Presentation. 1. Executive . 5. 9. Operational Summary . Highlights Why Linc? 16 04 . 11 - 12 . . . . . 2. Management Quarterly Commentary 05 . . 6. Profit & Loss 13 . . 10. Thank You 17 . Focus on 3. Key Highlights 06 . . 7. Shareholder Value Creation 14 . 4. Quarterly Highlights 07 - 1
Slide 5: Executive Summary
Executive Summary. ➢ Among Top 3 brands ➢ New Writing Instrument ➢ Global brand from ➢ Asia’s largest stationery in India for Writing brand launched in FY19 by Mitsubishi Pencil Co. Ltd, giant. • Linc Ltd. is one of India’s Instruments. Linc in MRP ₹10 and above Japan. largest writing instrument seg
Slide 6: Management Commentary
Management Commentary. “In the quarter gone by, our company demonstrated remarkable resilience and adaptability in the face of challenges. Despite a decline in our relatively higher margin export revenues, which can be attributed to geo-political disruptions in some of our key markets, our domestic
Slide 7: Key Highlights
Key Highlights. Operating Income up 3.3% YoY & up Gross Profit down 1.7% YoY at ₹ 3,811 17.3% QoQ at ₹ 13,122 lacs lacs and Margin stood at 29.0% Operating EBITDA down 19.1% YoY 'Pentonic' Sales was ~ 29% of total at ₹ 1,259 lacs and Margin stood at revenue for Q2 FY24 and its GPM 9.6% stood ~ 41% P
Slide 8: Quarterly Highlights
Quarterly Highlights. ₹ Lacs Operating Gross Operating PBT PAT Cash Income Profit EBITDA Profit1 13,122 3,811 1,259 1,026 771 1,150 Growth YOY 3.3% (1.7%) (19.1%) (19.0%) (19.4%) (12.9%) Growth QOQ 17.3% 5.4% (4.3%) 2.2% 4.4% 3.5% Margin2(%) 29.0% 9.6% 7.7% 5.8% Margin –YoY (147 bps) (267 bps) (220
Slide 9: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.). ₹ Lacs ROE(%)2 ROCE(%)2 Particulars 30-Sep-22 31-Mar-23 30-Jun-23 30-Sep-23 Net Worth 15,412 17,722 18,452 18,470 23.4% 30.2% 18.8% 24.1% 21.9% 21.8% 16.3% 16.7% Gross Debt - - - - Cash & Cash equivalent 822 760 1,560 597 Net Debt (822) (760) (1,560) (597) Sep'22 Mar'23
Slide 10: Quarterly Highlights (Cont..)
Quarterly 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 Q2 FY24 3,584 5,487 2,230 295 611 975 Sales Contribution (%) 27.
Slide 11: Quarterly Highlights (Cont..)
Quarterly Highlights (Cont..). ₹ Lacs Writing Instruments Trade Channel Other Products Revenue General Trade Corporate Modern Trade E-Commerce Exports Q2 FY24 9,509 580 688 486 1,918 Sales Contribution (%) 72.1% 4.4% 5.2% 3.7% 14.6% Q1 FY24 7,729 494 753 307 1,890 Sales Contribution (%) 69.2% 4.4
Slide 12: Operational Highlights
Operational Highlights. Increasing touch points Focus on brand building 2,41,424 2,48,573 3.1% 2,18,471 48,676 39,996 2.8% 1,48,898 1,44,969 36,694 35,496 1,41,970 ₹ LACS 1,16,963 2.2% 25,666 1.7% 24,309 65,000 1.5% 50,000 56,553 1.6% 539 1,242 414 602 1380 536 FY 19 FY 20 FY 21 FY 22 FY 23 Sep-23 F
Slide 13: Operational Highlights (Cont..)
Operational Highlights (Cont..). Growth in average realization of Pens Focus on higher margin products - 7.3% 5.62 5.57 5.62 5.80 5.78 36.5% 1,995 5.53 5.69 29.9% 29.4% 1,848 32.3% 5.77 25.5% 31.2% 4.9 5.56 597 29.0% In Lacs 4.52 5.42 600 4.32 34 47 3.96 23.8% ₹ 3.65 7.0% 1363 1202 21.8% 0.0% 20.3%
Slide 14: Quarterly Profit & Loss
Quarterly Profit & Loss. ₹ Lacs Particulars Q2 FY 24 Q2 FY 23 YoY Change Q1 FY 24 QoQ Change H1 FY 24 H1 FY 23 YoY Change FY 23 Operating Income 13,122 12,698 3.3% 11,188 17.3% 24,309 22,492 8.1% 48,676 Gross Profit 3,811 3,875 (1.7%) 3,616 5.4% 7,427 6,362 16.7% 15,197 Gross Profit (%) 29.0
Slide 15: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation. Net Cash from Operating Activities Vs Dividend Payout 5,000 60.0% 52% 4,723 4,000 50.0% 4,338 • NCOA continues to be strong in H1 FY 24 3,835 40.0% ₹ LACS 3,000 3,317 • Consistent Dividend Pay-out track record (Other than Covid years 33% 30.0% 2,000 20% 2,364 12%
Slide 16: Shareholding Pattern
Shareholding Pattern. 24.8% Promoters 2.2% Mitshubishi Pencil Co Ltd 0.2% 59.3% IEPF 13.5% NRI, FII, AIF etc. Other Public As on 30th September’23 15
Slide 17: Why Linc?
Why Linc?. Education sector Strong Balance Sheet with experiencing strong tail zero debt and free cash in winds in India; hence hand; strong top & bottom- demand for company’s line growth products will continue to grow Presence over all categories Strong in-house – Roller Pen, Gel Pen & Ball manufac
Slide 18: Thank You
Thank You. For further details please contact Director Finance & CFO Investor Relations Advisor N.K.Dujari Email: investors@linclimited.com Phone No.: +91 9830042353 Sanjeev Sancheti Landline: +91 33 68262100 Email: ss@uirtus.in Website: www.uirtus.in Phone No.: +91 9836244222 17