Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q3 FY20 Earnings Presentation
39 slides from Lux Industries's earnings presentation, Feb 13, 2020
Slide 1: Exchange filing cover letter
February 13, 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 Presenta
Slide 2: Lux Industries Limited Investor Presentation – February 2020
Lux Industries Limited Investor Presentation – February 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: Market Opportunity
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Market Opportunity TOUCH VENUS GENX
Slide 6: 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 7: 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) 6
Slide 8: Strong Foundation
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Strong Foundation TOUCH VENUS GENX
Slide 9: 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 10: 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 30% transformation from un- ✓ Mass, Semi Premium & organized to brand driven ✓ Increase in Premium Brand Premium contribution to revenue & Expandi
Slide 11: 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 30% in the next 2-3 years 15-18% Premium Revenue : 45% EBITDA Margin : 13-15% Med Premium Revenue : 34% EBITDA Margin : 8-10% … From
Slide 12: 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 13: 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 14: 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 15: We are led by Experienced Leadership
We are led by Experienced Leadership Mr. Ashok Kumar Todi Mr. Pradip Kumar Todi Mr. Saket Todi Mr. Udit Todi Chairman Managing Director President - Marketing President - Strategy ❑ His forte lies in Marketing of the ❑ Presently looking after the Product ❑ Son of Shri Ashok Kumar Todi, aged 30 years
Slide 16: 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 17: 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 16
Slide 18: Strategy
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO Market Penetration COZI CLASSIC ONN TOUCH Strategy VENUS GENX
Slide 19: 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 20: 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 11.48 acres on
Slide 21: 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 20
Slide 22: 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 23: 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 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 Shah
Slide 24: 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 25: 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 26: 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 27: Financial Performance
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Financial Performance TOUCH VENUS GENX
Slide 28: Q3 FY20 Consolidated Financial Highlights
Q3 FY20 Consolidated Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) +7% +28% +40% 306 55 33 285 43 24 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 EBITDA Margins (%) PAT Margins (%) +290 bps + 250 bps 17.9% 10.9% 15.0% 8.4% Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY2
Slide 29: 9M FY20 Consolidated Financial Highlights
9M FY20 Consolidated Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) +12% +18% +49% 924 144 93 827 123 62 9M FY19 9M FY20 9M FY19 9M FY20 9M FY19 9M FY20 EBITDA Margins (%) PAT Margins (%) +80 bps +250 bps 14.8% 15.6% 10.0% 7.5% 9M FY19 9M FY20 9M FY19 9M FY
Slide 30: Consolidated Profit & Loss Account
Consolidated Profit & Loss Account Consolidated Particulars (Rs. In Cr)* Q3 FY20 Q3 FY19 Y-o-Y 9M FY20 9M FY19 Y-o-Y Total Income from Operations 305.7 284.6 7% 923.6 826.7 12% Raw Material Cost 132.8 134.2 400.9 355.1 Employee Expenses 12.9 11.4 36.9 32.7 Subcontracting / Jobbing expenses 68.5 48.5
Slide 31: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crores)* Sep-19 Mar-19 Particulars (Rs. Crores)* Sep-19 Mar-19 Equity Non Current assets Property, Plant and Equipment 138.7 131.9 Equity Share capital 5.3 5.3 Capital work-in-progress 0.9 0.4 Other Equity 454.9 406.1 Intangible assets 0.2 0.4 Non Controll
Slide 32: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Half year ended 30th Sept, 2019 Half year ended 30th Sept, 2018 Particulars (Rs. Crores)* (Apr’2019 – Sept’2019) (Apr’2018 – Sept’2018) Net Profit Before Tax 77.0 61.1 Adjustments for: Non-Cash Items / Other Investment or Financial Items 13.2 18.8 Operating profit be
Slide 33: Lean Balance Sheet & Sustained Returns
Lean Balance Sheet & Sustained Returns Return on Equity (RoE) Return on Capital Employed (RoCE) Net Debt to Equity (x) 26.0% 30.1% 1.1 24.3% 24.4% 24.5% 28.0% 1.0 22.9% 21.9% 0.4 0.4 FY17^# FY18 FY19 H1 FY20* FY17* FY18 FY19 H1 FY20* FY17^ FY18 FY19 H1 FY20* ^ Preference Share Capital of Rs. 56 cror
Slide 34: Proforma Financials
Proforma Financials Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* Q3 FY20 Revenues (Rs. Crs.) Revenues (Rs. Crs.) +43% +19% +17% 66 436 64 66 64 306 54 57 Lux Industries JM Hosiery Ebell Fashions TOTAL Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* 9M FY20 Re
Slide 35: Standalone Profit & Loss Account
Standalone Profit & Loss Account Standalone Particulars (Rs. In Cr)* Q3 FY20 Q3 FY19 Y-o-Y 9M FY20 9M FY19 Y-o-Y Total Income from Operations 304.7 284.6 7% 922.5 826.7 12% Raw Material Cost 133.0 134.2 402.1 355.1 Employee Expenses 12.3 11.3 35.4 32.5 Subcontracting / Jobbing expenses 68.0 48.5 205
Slide 36: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. Crores)* Sep-19 Mar-19 Particulars (Rs. Crores)* Sep-19 Mar-19 Equity Non Current assets Property, Plant and Equipment 137.3 131.8 Equity Share Capital 5.3 5.3 Capital work-in-progress 0.9 0.4 Other Equity 460.1 408.6 Intangible assets 0.2 0.4 Investment In
Slide 37: Standalone Cash Flow Statement
Standalone Cash Flow Statement Half year ended 30th Sept, 2019 Half year ended 30th Sept, 2018 Particulars (Rs. Crores)* (Apr’2019 – Sept’2019) (Apr’2018 – Sept’2018) Net Profit Before Tax 79.7 62.2 Adjustments for: Non-Cash Items / Other Investment or Financial Items 12.9 18.7 Operating profit befo
Slide 38: Operating Performance
Operating Performance Revenue (Rs. In Cr) PAT (Rs. In Cr) EBITDA & PAT Margins (%) EBITDA% PAT% +9% 1,218 101 15.6% 14.5% 1,079 +31% 78 12.6% 909 941 960 871 60 10.0% 45 51 8.9% 8.3% 713 8.0% 7.2% 31 6.3% 6.2% 20 5.0% 5.5% 3.6% 2.9% FY13 FY14 FY15 FY16 FY17 FY18* FY19 FY13 FY14 FY15 FY16 FY17 FY18 F
Slide 39: Contact details
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. Jigar Kavaiya +91 9920602034 jigar.Kavaiya@sgapl.net VENUS GENX Mr. Deven Dhruva +91