Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Investor Presentation (June 2020)
37 slides from Lux Industries's investor presentation, Jun 29, 2020
Slide 1: Exchange filing cover letter
June 29, 2020. To, The Secretary, National Stock Exchange of India Ltd., Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandera (E), Mumbai — 400 051 To, The Secretary, BSE Limited, P.J. Towers, Dalal Street, Mumbai- 400 001 Symbol: LUXIND Scrip Code: 539542 Dear Sir, Sub: Investor Presentation
Slide 2: Lux Industries Limited Investor Presentation – June 2020
Lux Industries Limited Investor Presentation – June 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Lux Industries Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securi
Slide 4: Pioneering Commitment
Pioneering Commitment 1st Ranked ~8% of Annual 2,000 innerwear revenue invested 5,000+ pieces sold every SKU’s company in in Brand minute Volume Terms Promotion Manufacturing 1st Ranked 14-15% More than 100 Capacity of products across innerwear Brand Market share in Organized Men’s 2,000 lac in Beng
Slide 5: Financial Performance
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Financial Performance TOUCH VENUS GENX
Slide 6: Impact of COVID 19
Impact of CoVID 19 Q4 FY20 Q4 FY20 % Growth Impact on Q1 FY21 Particulars (Normalised Q4FY20 Q4FY19 (Normalised % Growth (Rs. Crs.) for CoVID) for CoVID) • After all regulatory permissions, Revenues the Company saw resumption in Revenues 423.2 288.2 391.2 8% -26% May 2020 albeit at lower -5% to -12%
Slide 7: FY20 Consolidated Financial Highlights
FY20 Consolidated Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) -1% +2% +24% 1,216 1,210 187 190 123 99 FY19 FY20 FY19 FY20 FY19 FY20 EBITDA Margins (%) PAT Margins (%) +30 bps +200 bps 15.4% 15.7% 10.1% 8.1% FY19 FY20 FY19 FY20 * - Ind-AS Financials 6
Slide 8: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Consolidated Particulars (Rs. In Cr)* Q4 FY20 Q4 FY19 Y-o-Y FY20 FY19 Y-o-Y Total Income from Operations 288.2 391.2 -26% 1209.9 1216.1 -1% Raw Material Cost 125.9 221.8 526.8 575.3 Employee Expenses 12.4 11.2 49.3 43.9 Subcontracting / Jobbing expenses 69.5 57.0 2
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crores)* Mar - 20 Mar-19 Particulars (Rs. Crores)* Mar -20 Mar-19 Equity Non Current assets Property, Plant and Equipment 127.0 131.9 Equity Share capital 5.3 5.3 Capital work-in-progress 0.8 0.4 Other Equity 490.2 406.1 Intangible assets 0.2 0.4 Non Contr
Slide 10: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Year ended 31st Mar, 2020 Year ended 31st Mar, 2019 Particulars (Rs. Crores)* (Apr’2019 – Mar’2020) (Apr’2018 – Mar’2019) Net Profit Before Tax 163.4 152.1 Adjustments for: Non-Cash Items / Other Investment or Financial Items 27.9 31.3 Operating profit before working
Slide 11: Lean Balance Sheet & Sustained Returns
Lean Balance Sheet & Sustained Returns Return on Equity (RoE) Return on Capital Employed (RoCE) Net Debt to Equity (x) 24.3% 24.4% 24.7% 29.8% 1.1 24.0% 27.8% 1.0 22.9% 21.9% 0.4 0.3 FY17^# FY18 FY19 FY20 FY17* FY18 FY19 FY20 FY17^ FY18 FY19 FY20 ^ Preference Share Capital of Rs. 56 crores considere
Slide 12: Proforma Financials
Proforma Financials Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* Q4 FY20 Revenues (Rs. Crs.) Revenues (Rs. Crs.) +49% -36% -10% 61 430 125 67 80 288 80 61 Lux Industries JM Hosiery Ebell Fashions TOTAL Q4 FY19 Q4 FY20 Q4FY19 Q4FY20 Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* FY20 Revenu
Slide 13: Market Opportunity
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Market Opportunity TOUCH VENUS GENX
Slide 14: Exponential Opportunities….
Exponential Opportunities…. Men Category At the cusp of rapid growth; per capita inner wear expenditure expected to double to Rs. 300 Rs. In Cr 6% CAGR Innerwear market of Rs. 27,931 Cr projected to grow at 10% CAGR to Rs. 74,258 Cr by 2027 17,894 Enhanced Manufacturing Automation (ultrasonic cuttin
Slide 15: ….poised to Grow
….poised to Grow Technology Rising exports 04 05 03 06 Demographic dividend Innovation 07 Middle class boom 02 08 Consumer purchasing power Brand consciousness 09 Growing population 01 10 Online retail Goods & Service Tax (GST) 14
Slide 16: Strong Foundation
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Strong Foundation TOUCH VENUS GENX
Slide 17: We have created Brand Equity
We have created Brand Equity Range of more than 100 products under 15 well-established brands for men, women and children, ensuring relevance across ages, genders, geographies and seasons.
Slide 18: Our Products are Bare Necessities
Our Products are Bare Necessities Diverse Product Premiumization Milestone Achieved Portfolio ✓ Lux Cozi helped sectorial ✓ ONN Brand growing revenues at 20% transformation from un- ✓ Mass, Semi Premium & organized to brand driven ✓ Increase in Premium Brand Premium contribution to revenue & Expandi
Slide 19: Our Products satisfy Customer needs
Our Products satisfy Customer needs Presence across Categories Presence across various Price Points Revenue : 21% Premium products to grow at a EBITDA Margin : CAGR of 20% in the next 2-3 years 15-18% Premium Revenue : 46% EBITDA Margin : 13-15% Med Premium Revenue : 33% EBITDA Margin : 8-10% … From
Slide 20: State of the Art Manufacturing Facilities
State of the Art Manufacturing Facilities ‘’Manufactured 20 crore garment pieces a year which is one of the largest in the Indian innerwear sector ‘’ One of Lowest Manufacturing Cost L 1. Ludhiana 2. Agarpara ❑ 100% of our products in-house with zero Outsourcing L ❑ Invested extensively in manufactu
Slide 21: We deliver Quality to generate Loyalty
We deliver Quality to generate Loyalty State-of-the-art Machines from Manufacture 100% of our products in-house with zero outsourcing Company invested in cutting machine from Morgan Technica SPA, Italy, and knitting machine from Mayer & Cie, Germany, and United Texmac Pte Ltd Singapore Up-gradation
Slide 22: We have right distribution setup to Support Growth
We have right distribution setup to Support Growth Merchandise Strength ❑ Core strength lies in the goodwill that we enjoy among distributors, dealers and retailers rather than machines and products 950+ 9 Capitalizing Opportunity Distributors ❑ First Indian innerwear company to organize distributor
Slide 23: We are led by Experienced Leadership
We are led by Experienced Leadership Mr. Ashok Kumar Todi Mr. Pradip Kumar Todi Chairman Managing Director ❑ His forte lies in Marketing of the products and formulating ❑ Presently looking after the Product Development and Production various policies for Growth & Expansion of the business on ❑ Forte
Slide 24: We are supported by Strong Management Team
We are supported by Strong Management Team Mr. Ajay Patodia - Chief Financial Officer Mr. Sanjay Mittal - Vice President (Sales) He is qualified as FCA, FICWA, DISA (ICAI), SAP (FI), and IFRS(C). He has He heads the Sales function and plays an important role in formulating the expertise in the field
Slide 25: We are honoured by Awards & Recognitions
We are honoured by Awards & Recognitions 2012-13 2013 2014 2014-15 Asia’s Most Promising Brands The Master Brand The Master Brand The Admired Brand of India 2015 2016 2018 The World’s Greatest Brands Asia’s Greatest Brands Lux Cozi - Best Brand of the Year 24
Slide 26: Market Penetration Strategy
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO Market Penetration COZI CLASSIC ONN TOUCH Strategy VENUS GENX
Slide 27: Market Penetration
Multi-Product & Multi-Brand Approach Quality at Low Costs Premiumization ❑ 100 products under 12 brands for a growing family’s needs Product & Quality ❑ Only 20% of the innerwear market accounted for by the premium and Semi- ❑ 5000 SKUs across all major brands premium Segments, offering significant
Slide 28: Technologically Advanced Expansion
Technologically Advanced Expansion Integrated Unit across knitting, processing and cutting functions which will strengthening efficiency, productivity & profitability New state-of-the-art 12 lakh sq. ft (approx) manufacturing facility in Dankuni, West Bengal Rs.83 Cr investment across 11+ acres on t
Slide 29: The New Age Distribution: E-Commerce
The New Age Distribution: E - Commerce Company is creating an online presence through e-commerce websites, enhancing access and image Amazon Snap Deal Myntra Other Presence: • Keep It On • Jabong Paytm FlipKart Shopclues • Lime Road • Tata Cliq 28
Slide 30: Focus on Demographics with Huge Potential
Focus on Demographics with Huge Potential ✓ First Indian innerwear brand to extend its product portfolio from innerwear vests to outerwear cum related products Europe ✓ Product offerings include Vests, briefs, trunks, boxers, Middle East India thermal wear, Panties, camisoles, leggings, lounge wear,
Slide 31: Sustained Brand Investments
Sustained Brand Investments 12 Ye Andar Ki Baat Hai the first television Marketing Spend (Rs. In Cr) 1992 advertisement featuring Sunny Deol was Brands launched. 109 100+ 91 89 Products 76 Face of Lux Sunny Deol was signed as Lux Cozi’s 2001 brand ambassador 56 56 49 41 New look - Indian film icon S
Slide 32: Capturing Market Share of the Unorganised Space
Capturing Market Share of the Unorganised Space GST to aid faster customer transition from the Unorganised Space to the Organised one… ✓ Have signed Mr. Amitabh Bachchan as the Brand Ambassador for our brand ‘Venus’. It is one of the largest innerwear brands in India. We have also signed him for our
Slide 33: Product Innovation – India's First Scented Vest
Product Innovation – India’s First Scented Vest INDIA looks good, feels good and smells good!! Landmark Product in the Men’s Innerwear Category Creating value based products keeping in mind the essential necessity and aspirational style quotient of India Unique feature of these vests is the fact tha
Slide 34: Continuous Strategic Innovation
Continuous Strategic Innovation Artimas Fashions CSE Consulting Synergies Private Limited LLP (Wholly Owned (License Owner of ✓ Aim at providing superior product quality coupled Subsidiary of Lux One8) – Brand of Virat with comfortable feel that will grab instant attention Industries) Kohli of the y
Slide 35: Historical Performance
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Historical Performance TOUCH VENUS GENX
Slide 36: Operating Performance
Operating Performance Revenue (Rs. In Cr) PAT (Rs. In Cr) EBITDA & PAT Margins (%) EBITDA% PAT% +8% 1,216 1,210 123 14.5% 15.70% 15.4% 1,079 +29% 99 12.6% 909 941 960 78 10.0% 871 8.9% 10.10% 60 8.0% 8.1% 713 45 51 7.2% 31 6.3% 6.2% 5.0% 5.5% 20 3.6% 2.9% FY13 FY14 FY15 FY16 FY17 FY18* FY19 FY20 FY1
Slide 37: Company and Investor Relations Advisors contacts
Company : Investor Relations Advisors : KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 TOUCH Mr. Ajay Patodia ajay.patodia@luxinnerwear.com Mr. Deven Dhruva +91 9833373300 deven.dhruva@sgapl.net VENUS GENX Mr. Abhishek Shah +91