Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Investor Presentation (August 2020)
36 slides from Lux Industries's investor presentation, Aug 17, 2020
Slide 1: Cover letter to stock exchanges
Le LE > August 17, 2020. To, To, The Secretary, The Secretary, National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, C-1, Block G, P.J. Towers, Bandra Kurla Complex, Bandera (E), Dalal Street, Mumbai — 400 051 Mumbai- 400 001 Symbol: LUXIND Scrip Code: 539542 Dear Sir, Sub: Investor Pr
Slide 2: Lux Industries Limited Investor Presentation – August 2020
Lux Industries Limited Investor Presentation – August 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 Sale of 1st Ranked 14-15% More than 100 Market share in products across 2,000 lac+ innerwear Brand Organized Men’s garments pieces a in Ben
Slide 5: Financial Performance
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Financial Performance TOUCH VENUS GENX
Slide 6: Q1 FY21 Consolidated Financial Highlights
Q1 FY21 Consolidated Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) -6% +34% +64% 263 247 47 31 35 19 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 EBITDA Margins (%) PAT Margins (%) +560 bps +540 bps 19.0% 12.5% 13.4% 7.1% Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21
Slide 7: Q1 FY21 Consolidated Profit & Loss Account
Q1 FY21 Consolidated Profit & Loss Account* Consolidated Particulars (Rs. In Cr)* Q1 FY21 Q1 FY20 Y-o-Y FY20 FY19 Y-o-Y Total Income from Operations 247.2 263.1 -6% 1,209.9 1,216.1 -1% Raw Material Cost 129.4 99.6 526.8 575.3 Employee Expenses 8.9 11.5 49.3 43.9 Subcontracting / Jobbing expenses 41.
Slide 8: FY20 Consolidated Balance Sheet
FY20 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
Slide 9: FY20 Consolidated Cash Flow Statement
FY20 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 w
Slide 10: 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 11: Proforma Financials
Proforma Financials Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* Q1 FY21 Revenues (Rs. Crs.) Revenues (Rs. Crs.)^ +34% -18% -75% 16 331 83 64 68 247 68 16 Lux Industries JM Hosiery Ebell Fashions TOTAL Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* FY20 Reve
Slide 12: Market Opportunity
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Market Opportunity TOUCH VENUS GENX
Slide 13: 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 14: ….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) 13
Slide 15: Strong Foundation
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Strong Foundation TOUCH VENUS GENX
Slide 16: 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 17: 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 18: 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% … Fro
Slide 19: 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. Srijan ❑ 100% of our products in-house with zero Outsourcing Logistics Park L ❑ Invested extensively
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 23
Slide 25: Market Penetration Strategy
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO Market Penetration COZI CLASSIC ONN TOUCH Strategy VENUS GENX
Slide 26: 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 27: 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 28: 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 27
Slide 29: 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 ✓ Product offerings include Vests, briefs, trunks, boxers, thermal Europe wear, Panties, camisoles, leggings, lounge wear, t-shirts and sock
Slide 30: 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 31: 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 32: 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 33: 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 34: Historical Performance
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Historical Performance TOUCH VENUS GENX
Slide 35: 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 36: 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