Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q3 FY2024 Earnings Presentation
45 slides from Lux Industries's earnings presentation, December 2023
Slide 1: Lux Industries Limited Corporate Presentation Dec'23
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I DEC’23
Slide 2: What's Inside
WHAT’S INSIDE 03 Market 03 Market Outlook & Company Update 16-28 Fast-track progress 05-13 16 Strengths 17 Manufacturing 18 New Markets 23 Financials 24 Leadership Profile 25 Next Generation Corporate identity 19 Multi- Channel Footprint 26-27 Management 05 At a glance 20 Branding 28 Transforming in
Slide 3: Market Outlook & Company Update
MARKET MARKET OUTLOOK & COMPANY UPDATE Economy & Market Update Brand Performance ➢ Sluggish export demand ➢ Clear shift towards organized segment ➢ Strong brand recall felt – Power brands performing well ➢ Delayed winter and general slowdown despite inflationary pressures ➢ Menswear brand Cozi witne
Slide 4: Corporate
05 At a glance 06 Milestone 07 Brand Portfolio 08 Product Portfolio 09 Prominent Brand Margins 10 Presence 11 Export presence 12 Governance 13 Internal Controls C O R P O R AT E
Slide 5: At a Glance
AT A GLANCE ENSURING EVERYDAY COMFORT FOR DECADES Lux group Unique in its value proposition Leadership Scale No.1 ₹1,607 crore 34 crore 2 lakh+ 46+ Indian innerwear Consolidated revenue Garment pieces** Retailer network across Country export presence company from operations* manufacturing capacity I
Slide 6: Building on a Rich Legacy
MILESTONE BUILDING ON A RICH LEGACY 1957 2019 (Contd.) • Shri Girdhari Lal Todi founded 2019 (Contd.) • Launched India's first scented Biswanath Hosiery Mills • Kartik Aaryan was onboarded as vest Lux Cozi 1993-1995 brand ambassador for Lux • Launched One8 brand 2024 • Export commenced across the In
Slide 7: Lux Product Portfolio
BRAND PORTFOLIO LUX PRODUCT PORTFOLIO Men’s Kidswear Innerwear Vest Vest Mega Men’s Innerwear Womenswear Brief Brief Briefs Innerwear Trunk Trunk Vests Brassieres T-Shirt Half Pant Boxers Panties Track Pants T Shirts Camisole T-Shirt Shapewear Mens Outerwear Womenswear T- Shirt Half Pant Outerwear T
Slide 8: Presence Across Diverse Price Points
PRODUCT PORTFOLIO PRESENCE ACROSS DIVERSE PRICE POINTS Winter **Total Revenue Categories Prominent brands Wear in ₹ Cr Premium ₹ Cr 93 95 06 194 Semi- premium ₹ Cr 383 279 76 130 868 Economy Others ₹ Cr 406* 29 50 52 538 Presence across price segments helps the Company cater to a wide customer base
Slide 9: Widening and Deepening Reach
PRESENCE WIDENING AND DEEPENING REACH 1,170+ dealers' Available in 2 lakh+ multi- Stronger e-retail platform 13 Depots drive faster network brand stores and 9 EBOs presence distribution in India 550+ Sales teams drive offtake Participated in highly 19 anticipated Apparel & Warehouses (12 states) Tex
Slide 10: Taking Homegrown Brands to the Global Market
EXPORT PRESENCE TAKING HOMEGROWN BRANDS TO THE GLOBAL MARKET Iraq Kuwait Saudi Qatar Bahrain Star Export Market traction in Germany Arabia UAE Oman Sudan House tropical countries Chad Jordan Nepal recognition (including GCC Mali Niger Myanmar by region and Africa) Government Algeria Thailand Nigeria
Slide 11: Advancing with Good Governance
GOVERNANCE ADVANCING WITH GOOD GOVERNANCE Experienced Board Strong Management Team Shareholding Pattern as on 31.12.2023 • Promoter-Directors with 25+ years of • Inducted several new members in the 17.91% average industry experience; expertise- recent years Sales & Marketing, Brand Promotion, • New
Slide 12: Strengthening Internal Controls
GOVERNANCE STRENGTHENING INTERNAL CONTROLS SOP driven culture Robust risk-management ▪ Minimal manual framework interventions Procure ▪ Well implemented to Pay IT General Cyber Security Inventory Controls & Management Regulatory framework Compliance Organisation-wide Execution excellence accountabil
Slide 13: Opportunity Landscape
15 Opportunity landscape Lux Industries Limited
Slide 14: Responding to Market Opportunities
OPPORTUNITY LANDSCAPE RESPONDING TO MARKET OPPORTUNITIES 1,170+ 3,200+ 20+ years ₹50 crores Strong distribution channel Employee workforce Longstanding dealer relationship Near-term investment to augment production through internal accrual ₹24 to ₹1790 ~15% ₹251 crores 674+ Price range of products E
Slide 15: Fast-Track
17 Strengths 18 Manufacturing 19 New Markets 20 Multi- Channel Footprint 21 Branding 23 Digitalization 24 Financials 25 Leadership Profile 26 Next Generation 27 Management 29 Transforming into a New Lux FAST-TRACK Lux Industries Limited
Slide 16: Growth Initiatives
STRENGTHS GROWTH INITIATIVES Expansion: Foraying into new segments Technology: Augmenting digital and geographies and expanding multi- capability with investments in channel footprint automation (SAP HANA) for enhanced operational control Expansion Technology Quality: Creating new benchmarks Efficie
Slide 17: Enhancing Manufacturing Capabilities
MANUFACTURING ENHANCING MANUFACTURING CAPABILITIES Yarn 3 Cr kg Demonstrated manufacturing Flexible core manufacturing excellence for over 3 decades process s pc Cr 3C 34 rk g Ability to consistently deliver high Manufacturing Key focus areas: quality, cost quality products on timely basis Process e
Slide 18: Venturing into Newer Regions and Segments
NEW MARKETS VENTURING INTO NEWER REGIONS AND SEGMENTS Share of revenues from value, From an innerwear Focus on premium Diversify product portfolio semi-premium and premium pureplay to a mix of innerwear range: in female (innerwear products category of YTD Dec’22 athleisure and outerwear - ₹194 Crore
Slide 19: Expanding Through Multi-Channel Footprint
MULTI-CHANNEL FOOTPRINT EXPANDING THROUGH MULTI-CHANNEL FOOTPRINT ▪ Growing wholesale Adopting investment-light market presence #FOFO model ▪ Association with 1,170+ dealers with focused engagement initiatives Strong presence in Target revenue of ₹100 Cr multi-brand outlets and large format stores f
Slide 20: Crafting 360° Branding Initiatives
BRANDING CRAFTING 3600 BRANDING INITIATIVES Building brands ₹900 crores judiciously Branding investments in the last seven years including YTD Salman Khan, Sourav Dec’23 Ganguly, Jacqueline Fernandez, Vijay Deverakonda, 8% Varun Dhawan, Average share of revenues Boman Irani, Janhvi spent on branding
Slide 21: Creating Successful Brand Strategy
BRANDING CREATING SUCCESSFUL BRAND STRATEGY 1 2 3 Creating Innovative products Sustaining Successful brand and launches brand across different promotion price point 6 5 4 Clear and consistent Evolving Strengthening brand product communication endorsement salience compatibility 7 8 Messaging around d
Slide 22: Accelerating Digital Adoption
DIGITALISATION ACCELERATING DIGITAL ADOPTION IT New Initiatives by Launched ‘Lyra Connect’ developing new age solutions Retailer App- a first of its kind Process app to directly connect with its Timeline for better customer experiences Change – led by Prateek Agarwal and retailers his team. Led by B
Slide 23: Strengthening Financials
FINANCIALS STRENGTHENING FINANCIALS Overhauled credit policy to 14.19% 192 days 170 days strengthen working capital Working Capital Days in Working Capital Days in ROCE, YE Mar’23 YTD Dec’22 YTD Dec’23 129 days 122 days Deleveraged balance sheet and ₹251 crores Inventory cycle in YTD Dec’22 Inventor
Slide 24: Our Leadership Profile
LEADERSHIP PROFILE OUR LEADERSHIP PROFILE Ashok Kumar Todi Pradip Kumar Todi Chairman Managing Director • Visionary, Founder and Promoter • Visionary, Founder and Promoter • Commerce Graduate; engaged in the hosiery business • Commerce Graduate for over five decades • Primarily focuses on product de
Slide 25: Next Generation Taking Vision Forward
NEXT GENERATION NEXT GENERATION TAKING VISION FORWARD Navin Kumar Todi Rahul Kumar Todi Saket Todi Udit Todi Executive Director Executive Director Executive Director Executive Director • Post Graduate (Brand • MSC in Finance from LSE, • Commerce Graduate • Post Graduate (Marketing) from Management)
Slide 26: Strengthening the Management Team
MANAGEMENT STRENGTHENING THE MANAGEMENT TEAM Professionals in key positions Udai Kumar Agarwal Ajay Nagar Smita Mishra Chief Operating Officer (COO) Chief Financial Officer (CFO) Company Secretary & Compliance Officer • Qualified Chartered Accountant and Cost • Qualified Chartered Accountant • Quali
Slide 27: Strengthening the Management Team
MANAGEMENT STRENGTHENING THE MANAGEMENT TEAM Well-defined roles and responsibilities Mr. Bibek Narendra Maity Panjwani Vice President (Sales) Prateek Agarwal Surendra Kumar Bajaj Head Chief of Information Quality Control Officer Sanjay Mittal Vice President (Marketing) GM – IT & New Initiatives • Po
Slide 28: Prepared for Tomorrow: Transforming into a New Lux
TRANSFORMING INTO A NEW LUX PREPARED FOR TOMORROW Combination of mass, Professionally-driven Technology-driven mid-premium and with defined premium employee roles Mass segment Promoter-driven Legacy processes Pull marketing Pan-India presence To From Push marketing Selected states of presence Men’s
Slide 29: Business Highlights / Financial Performance
31 Business Highlights 32 Financial performance Lux Industries Limited
Slide 30: Q3 FY'24 & YTD Dec'23 Business Highlights
BUSINESS HIGHLIGHTS Q3 FY’24 & YTD Dec’23 BUSINESS HIGHLIGHTS FINANCIAL POWER GROWTH DRIVERS PERFORMANCE BRANDS DIGITAL PLAY BRAND INVESTMENT Volume growth of ~6% Power brand Lyra Pivoting from primarily Substantial investment Long Standing Quarterly YoY and ~10% registering volume growth offline to
Slide 31: Financial Snapshots - Q3 FY'24 & YTD FY'24
PERFORMANCE FINANCIAL SNAPSHOTS- Q3 FY’24 & YTD FY’24 Revenue (₹ In Crores) EBITDA (₹ In Crores) PAT (₹ In Crores) De-growth EBIDTA EBIDTA Margin PAT PAT Margin (%) Q3 FY'24 3.58% 3% 459.05 4.33% 446.86 8.34% 19.49 7.41% 16.56 37.53 34.25 Q3 FY'23 Q3 FY'24 Q3 FY'23 Q3 FY'24 Q3 FY'23 Q3 FY'24 Revenue
Slide 32: Performance for FY'23
PERFORMANCE PERFORMANCE FOR FY’23 Revenue (₹ In Crores) EBITDA (₹ In Crores) PAT (₹ In Crores) 21.20% 14.62% 3.6% 490.27 EBIDTA EBIDTA Margin 2397.63 PAT PAT Margin 2312.92 338.06 FY'23 9.70% 5.73% 233.15 137.47 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 Capital Employed (₹ In Crores) Cash and Cash Equival
Slide 33: Bird's-Eye View
PERFORMANCE BIRD’S-EYE VIEW Nine Months Ended Category NSV YTD Dec’23 NSV YTD Dec’22 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 194 246 -21.2% -21.2% -0.0% Mid- Premium 868 874 -0.6% 9.1% -8.9% Economy 538 533 0.9% 17.2% -13.9% Total 1600 1653 -3.2% 9.4% -11.5% Lux Ind
Slide 34: Segment Revenue & Results - Q3 & 9M FY24
PERFORMANCE SEGMENT REVENUE & RESULTS- Q3 & 9M FY24 Q3 (Rs. cr.) 9M (Rs. cr.) Particulars FY24 FY23 YoY FY24 FY23 YoY growth growth Segment Revenue a) Vertical A 177 207 -14.49% 633 693 -8.65% b) Vertical B 217 198 9.59% 748 733 2.05% c) Vertical C 53 55 -3.6% 226 237 -89.0% Revenue from operations
Slide 35: Segment Assets & Liabilities - Q3 & 9M FY24
PERFORMANCE SEGMENT ASSETS & LIABILITIES- Q3 & 9M FY24 Q3 (Rs. cr.) 9M (Rs. cr.) Particulars FY24 FY23 YoY FY24 FY23 YoY growth growth Segment Assets a) Vertical A 783 733 6.82% 783 733 6.82% b) Vertical B 893 823 8.50% 893 823 8.50% c) Vertical C 281 296 -5.06% 281 296 -5.06% d) Un-allocable # 126
Slide 36: ESG, Sustainability, CSR, Environment
37 ESG 38 Sustainability 39 CSR 43 Environment Lux Industries Limited
Slide 37: Reinforcing Our ESG Commitment
ESG REINFORCING OUR ESG COMMITMENT ESG ▪ Collaborated with Churchgate Partners to implement ESG ▪ Provide more transparency in disclosures regarding Environment, Social and Governance related issues ▪ Guided by the principles to make a difference in society by giving back in equal measures ▪ Recogni
Slide 38: Continuing Sustainability Commitment
SUSTAINABILITY CONTINUING SUSTAINABILITY COMMITMENT Action Impact Our products are made of 100% natural fibre and we Hygienic products and reduced environmental use recyclable packaging impact Many suppliers manufacture exclusively for us Consistent product quality and employment generation Manufact
Slide 39: CSR
CSR Supporting economically Addressing environment Supporting 180+ elderly Focusing on animal welfare backward people through sustainability people benefiting 500+ cows various measures such as by building rest rooms Making available safe Promotion of traditional Supporting the education of the Prov
Slide 40: Spreading the Seeds of Knowledge
CSR SPREADING THE SEEDS OF KNOWLEDGE Commitment for support of ₹ 2 crores towards the building of a free residential school project for over 1000+ unprivileged girls in Joka, WB has been fulfilled. Built the Saraswati Sishu Mandir School at Bali (Murshidabad) Contributed ₹ 1.5 crores to Dhanuka Dhun
Slide 41: Ensuring Well-Being for All
CSR ENSURING WELL-BEING FOR ALL Supporting Reaching healthcare Pushpawati Singhania through focused Hospital & Research intervention areas Institute (kidney ailments, cardio- vascular diseases, cancer among others) Engaging in providing Providing OPD and IPD treatment to ailing services to the popul
Slide 42: Current Status of Project Proposed
CSR Current Status of Project Proposed Lux Industries Limited 42
Slide 43: Environment: 1 MW Rooftop Solar Power Plant at Dankuni
ENVIRONMENT 1 MW rooftop solar Energy-saving LED lighting power plant at Dankuni systems in our plants save (West Bengal) unit energy Process technology help 30-40% of our total save water power requirements met through renewable sources Substantial electricity Installations of Capacitors cost reduc
Slide 44: 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 45: For further information, please contact
For further information, please contact Company : CIN: L17309WB1995PLC073053 investors@luxinnerwear.com www.luxinnerwear.com