Linc Limited · NSE:LINC

Linc — Q3 FY22 Earnings Presentation

26 slides from Linc's earnings presentation, April 2023

  1. Slide 1: Linc Limited (formerly Linc Pen and Plastics Limited)

    NSE : LINC BSE : LINC Linc Limited Bloomberg : LINC:IN (formerly Linc Pen and Plastics Limited)

  2. Slide 2: Q3 FY22 Agenda

    Q3 FY22 . Global . 1. 9. 13. Executive 5. Operational . Stationery Shareholding Summary Highlights . Industry . Pattern 03 . 10 - 11 Opportunity 19 . . . 15 . . . 2. 14. Quarterly 6. 10. Management Opportunity in Why Linc? Commentary Profit and Loss . Indian Markets . 04 . 12 20 . 16 . . . . . Summa

  3. Slide 3: Linc at a glance: brands and presence

    Q3 FY22 ➢ 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 Instruments. Linc in MRP ₹10 and above Japan. India’s largest writing segment. instrument compa

  4. Slide 4: Management Commentary - Mr. Deepak Jalan

    Q3 FY22 “ In spite of schools & colleges continuing to remain closed most of the quarter due to Covid restrictions, our revenue has grown sequentially as well as YoY. With colleges starting to open in a few states and schools & colleges slated to open in most of the other states, we expect strong gr

  5. Slide 5: Key Highlights: Total Income up 34.4% YoY

    Q3 FY22 Total Income up 34.4% Gross Profit up 62.8% YoY at YoY, 1.4% QoQ at ₹ 9,575 ₹2,416 lacs and Margin stood at lacs 25.3% Operating EBITDA up 258.4% Pentonic Sales continued to YoY at ₹ 671 lacs and Margin grow and was over 25% of stood at 7%. Operating EBITDA total revenue for 9M FY22 and Marg

  6. Slide 6: Q3 FY22 Quarterly Highlights

    Q3 FY22 ₹ Lacs Growth (YOY) 34.4% 62.8% 258.4% NA2 NA2 214% Growth (QOQ) 1.5% 7.4% -11.7% -23.2% -22.2% -7.9% Margin(%) 25.3% 7.0% 3.9% 2.9% Margin 443 bps 440 bps 628 bps 473 bps Expansion/Contraction (YOY) EPS/CEPS 1.87 4.14 Note: 1. Cash Profit = PAT add Depreciation 2. Considered NA as PBT and P

  7. Slide 7: Q3 FY22 Balance sheet, ROE and ROCE

    Q3 FY22 ₹ Lacs Particulars 31-Dec-21 31-Mar-21 ROE(%)2 ROCE(%)2 10.0% 10.0% 6.6% 5.0% 3.5% 4.9% Net Worth 13,979 13,471 5.0% 5.0% 0.0% 0.0% 0.0% Short Term Borrowing 201 881 -5.0% -5.0% -0.6% -6.1% -4.9% -10.0% -10.0% Long Term Borrowing 4 40 Dec 21 Sep 21 Dec 20 FY21 Dec 21 Sep 21 Dec 20 FY21 Gross

  8. Slide 8: Revenue by Writing Instruments and Other Products

    Q3 FY22 ₹ Lacs Revenue Writing Instruments Other Products Own Brands​ Licensed Own Brands​ Licensed Brands​ Brands​ Pentonic​ Linc & Others​ (Uni-Ball) Pentonic​ Linc & Others​ (Deli) Q3 FY22 2201 4772 1191 ​ 8 4 113 320 Sales Contribution (%) 25% 55% 14% 1% 1% 4% Q3 FY21​ 1092 4057 941 ​ 9 2 115 24

  9. Slide 9: Revenue by Trade Channel

    Q3 FY22 ₹ Lacs Revenue Trade Channel General Trade Modern Trade​ E-Commerce Corporate​ Exports​ Q3 FY22 6043 469 90 ​309 1734 Sales Contribution (%) 70% 5% 1% 4% 20% Q3 FY21​ 4291 211 124 ​541 1307 Sales Contribution (%) 67% 3% 2% 8% 20% Q2 FY22 5900 403 218 ​407 1748 Sales Contribution (%) 68% 5% 2

  10. Slide 10: Increasing touch points; focus on brand building

    Q3 FY22 Increasing touch points Focus on brand building 39,996 200000 167584 148898 145150 151328 36,694 3.1% 35,049 24,441 50,000 3.5% 33,189 150000 135184 3.0% 25,666 40,000 2.5% ₹ IN LACS 100000 78710 65000 62405 66736 30,000 1.6% 1.5%2.0% 50000 56553 46000 45765 1.3% 50000 20,000 1.5% 1.5% 177 1

  11. Slide 11: Focus on higher margin products; growth in average realization

    Q3 FY22 Growth in average realization Focus on higher margin products 25.0% 4.6 4.52 30% 26% 24.7% 4.32 20% 24.0% 17% 24.2% 4.4 20% 23.0% 4.2 7% 3.9 3.96 10% 22.0% 4 0% 21.8% 0% 21.0% ₹ 3.8 3.65 3.6 FY18 FY19 FY20 FY21 9M 20.0% FY22 FY18 FY20 9M FY22 3.4 3.2 Pentonic Share in Revenue Company GPM 3 F

  12. Slide 12: Q3 FY22 Profit and Loss

    Q3 FY22 ₹ Lacs Operating Income​ 9,533 7,093 34.4% 9,395 1.5% 24,441 16,290 50.0% 25,666 Gross Profit 2,416 1,484 62.8% 2,326 7.4% 5,905 3,586 64.7% 5,753 Gross Profit (%) 25.3% 20.9% 21.2% 23.9% 5.8% 24.2% 22.0% 9.8% 22.4% Op EBITDA​ 671 187 258.4% 761 -11.7% 1,568 364 331.3% 1,017 Op EBITDA Margin

  13. Slide 13: Leadership

    Q3 FY22 MR. DEEPAK JALAN MR. ANIL KOCHAR Managing director, Independent, Non-executive director, • Commerce graduate with 35 years of experience • Postgraduate in Commerce and LLB • Responsible for the overall operations with a specialization in • An eminent advisor on income tax matters internation

  14. Slide 14: Global Writing Instrument Industry

    Q3 FY22 1. The Global writing instruments Global Writing Instrument Industry Share of relevant market market is dominated by USA with a market share of 27% 30 2020 2027 20.6 2. Growth Drivers: Billions 20 15.9 CAGR Ball and Gel Pen 36% 41% a) Demand for Luxury USD 10 3.8% Instruments Roller 9% 9% b)

  15. Slide 15: Global Stationery Products Market

    Q3 FY22 Global Stationery Products Market 220 217.9 • The stationery industry is divided into paper Billion 200 192.2 and non-paper stationery, the latter accounting USD CAGR 180 1.81% for the larger share • Growth Drivers 160 • Rising inclination towards higher 2020 2027 education • Demand from cor

  16. Slide 16: Opportunity in Indian Markets

    Q3 FY22 Indian Education Market Size Indian School Market Size • Largest population in age bracket of 5-24 years ~ 580 million 300 225 100 74.3 • Over 250 million school going students • Indian education market expected to be ~ USD 225 Billions Billions 200 CAGR CAGR USD USD 91.7 50 34.3 billion by

  17. Slide 17: Evolution of Linc

    Q3 FY22 Full Effect of Gel Pen Full Effect of Pentonic Project Project Total Revenue reached ₹ 13684 Share of Pentonic Revenue lacs and EBITDA was ₹ 918 lacs increased to 17%, GM expanded to ~ 25% due to higher GP of 46% on Pentonic 1999- 2004- 2018- 2019- 2022 2000 2005 2019 2020 Onwards Gel Pen Pr

  18. Slide 18: Shareholder Value Creation: FCF vs Dividend Payout

    Q3 FY22 FCF VS DIVIDEND PAYOUT 4723 5000 60.0% 3835 3317 52.0% 50.0% 4000 ➢ Steady increase in Free Cash Flow 40.0% ₹ IN LACS 3000 31.0% ➢ Consistent Dividend Pay-out track record of greater than 30% . 34.0% 223 30.0% 1317 2000 (Other than Covid years due to cash conservation). 20.0% 914 12.0% 534 5

  19. Slide 19: Shareholding Pattern

    Q3 FY22 27.1% Promoters Mitshubishi Pencil Co Ltd 0.2% 59.02% IEPF 0.2% NRI, FII etc. 13.4% Other Public As on 31st Dec 21 19

  20. Slide 20: Why Linc?

    Q3 FY22 Education sector experiencing Strong Balance Sheet with very strong tail winds in India; low leverage hence demand for company’s products will continue to grow Presence over all categories – Strong in-house manufacturing Roller Pen, Gel Pen & Ball Pen - facilities with judicious mix of in af

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  22. Slide 22: Summary of Financial Statements: Profit and Loss

    Q3 FY22 ₹ Lacs Operating Income 33,189 36,694 39,699 25,666 24,441 9,533 ​Growth (%)3 -5% 11% 8% -35% 50% 34% Gross Profit 7,232 7,434 9,805 5,753 5,905 2,416 Gross Profit Margin 21.8% 20.3% 24.7% 22.4% 24.2% 25.3% ​Operating EBITDA​ 2,577 2,539 3,826 1,017 1,568 671 Operating EBITDA Margin 7.8% 6.9

  23. Slide 23: Summary of Financial Statements: Balance Sheet

    Q3 FY22 ₹ Lacs Net Worth​ 12,077 12,337 13,697 13,471 13,979 ​Short Term Loans​ 4,848 3,813 2,422 881 201 Long Term Loans​ 1,710 2,392 2,319 40 4 Gross Debt​ 6,558 6,205 4,740 921 205 Cash & Cash equivalent​ 11 11 13 14 63 Net Debt​ 6,547 6,194 4,727 907 143 Capital Employed1 19,324 19,388 19,199 15

  24. Slide 24: Solvency, Operational and Return Ratios

    Q3 FY22 ₹ Lacs Net ​Debt/Equity 0.54 0.50 0.35 0.07 0.01 Solvency Ratios Net Debt/EBITDA​ 2.54 2.44 1.24 0.89 0.07 EBIT​/Interest 3.57 2.76 5.26 (0.39) 13.92 Current Ratio 1.74 1.68 1.85 1.92 2.12 Fixed Asset Turnover 5.33 5.15 5.15 3.43 4.30 ​Total Asset Turnover 1.49 1.56 1.66 1.15 1.63 Operationa

  25. Slide 25: Disclaimer

    Q3 FY22 The information contained in this presentation is provided by Linc Limited (the “Company”). Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change without noti

  26. Slide 26: For further details please contact

    Q3 FY22 For further details please contact Director Finance & CFO Investor Relations Advisor N.K.Dujari Email: investors@lincpen.com Phone No.: +91 9830042353 Sanjeev Sancheti Landline: +91 33 68262100 Email: ss@uirtus.in Phone No.: +91 9836244222 26

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