Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q4 2020-21 Earnings Presentation
49 slides from Lux Industries's earnings presentation, March 2021
Slide 1: Lux Industries Limited Corporate Presentation 2021
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I 2021
Slide 2: What's Inside
WHAT’S INSIDE ESG Fast-track progress 03 ESG 18 Strengths 25 Financials 04 CSR 19 Manufacturing 26 Leadership Profile 20 New Markets 28 Management 21 Multi- Channel Footprint 30 New Venture 22 Branding 31 Transforming into a New Lux 24 Digitalisation Corporate identity 06 At a glance 07 Milestone 08
Slide 3: ESG
ESG 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 ▪ Recognizing the need for sustained pro
Slide 4: CSR
CSR Supporting economically Addressing environment Supporting 180+ elderly Focusing on animal welfare backward people sustainability people benefiting 500+ cows Making available safe Promotion of traditional drinking water benefiting art & culture 1 lakh+ people Annual CSR expenditure Trees planted
Slide 5: Corporate Identity
06 At a glance 07 Milestone 08 Product Portfolio 10 Merger 11 Presence 12 Export presence 13 Governance C O R P O R AT E
Slide 6: At a Glance
AT A GLANCE ENSURING EVERYDAY COMFORT FOR DECADES Lux group as a merged entity Unique in its value proposition Leadership Scale Indian innerwear Combined revenue Garment pieces; Retailer network across Country export presence company from operations manufacturing capacity India (volume terms) across
Slide 7: Milestone
MILESTONE Shri. Giridhari Lal Todi Shares listed on • Commissioned Eastern Merger of J.M. Hosiery and Ebell founded Biswanath Hosiery the BSE and NSE India’s largest hosiery Fashions with Lux Industries Mills product manufacturing plant in Dankuni Comfort partner for IPL • Became Kolkata Knight • La
Slide 8: Product Portfolio
PRODUCT PORTFOLIO Winter **Total Revenue Categories Prominent brands Wear in ₹ Cr Premium ₹ Cr Semi- premium ₹ Cr Economy Others ₹ Cr Presence across price segments helps the Company cater to a wide customer base and fast-track growth * Includes complete winterwear sale including Lux Cottswool ** No
Slide 9: Product Portfolio
PRODUCT PORTFOLIO *Total Revenue Margin Prominent brands in ₹ Cr 18-21% 13-17% Upto 12% Others Presence across price segments helps the Company cater to a wide customer base and fast-track growth *Note : Net sales revenue of 2020-21 Lux Industries Limited 09
Slide 10: Merger
MERGER Group companies – Ebell Fashions Private Limited (brand Lyra) and EPS in FY21 (post-merger) J.M. Hosiery and Co Limited (brand Genx) merged with Lux Industries Limited EPS in FY20 (pre-merger) Benefits of the Merger ▪ Market growth ▪ EPS accretive Shares of Lux (pre-merger state) ▪ Expand pro
Slide 11: Presence: Widening and Deepening Reach
PRESENCE WIDENING AND DEEPENING REACH 1,150+ dealers' Available in 2 lakh+ multi- Stronger e-retail platform 12 Depots drive faster network brand stores and 11 EBOs presence distribution in India Strategically located Exclusive brand outlets manufacturing units (target by FY22) (West Bengal, Punjab,
Slide 12: Export Presence
EXPORT PRESENCE Kuwait Saudi Qatar Star Export House Market traction in Germany Arabia Bahrain UAE Oman Sudan recognition by tropical countries Chad Jordan Nepal Government of India (including GCC Mali Myanmar Niger region and Africa) Thailand Algeria Nigeria Morocco Benin Hong Kong Burkina Faso Geo
Slide 13: Governance
GOVERNANCE Shareholding pattern 31.3.21 Experienced Board Strong Management Team Restructured business • Promoter-Directors with 24 years of • Inducted several new members in the 22.42 processes average industry experience; expertise- past two years Sales & Marketing, Brand Promotion, • New members
Slide 14: Governance: Risk-Management Framework
GOVERNANCE Robust risk-management ▪ No duplications framework ▪ Minimal manual Procure interventions to Pay IT General Inventory Controls & Management Regulatory Compliance Organisation-wide Execution excellence accountability through: Inbound & Outbound Well-defined Human ▪ Digital capability Logis
Slide 15: Opportunities
16 Opportunity landscape OPPORTUNITIES
Slide 16: Lux's Response
LUX’S RESPONSE Strong distribution channel Employee workforce Longstanding dealer relationship Near-term investment to augment production through internal accrual Price range of products Existing market share in men's Cash balance Districts-presence in India innerwear Additional revenue generation p
Slide 17: Fast-Track
18 Strengths 19 Manufacturing 20 New Markets 21 Multi- Channel Footprint 22 Branding 24 Digitalisation 25 Financials 26 Leadership Profile 28 Management 30 New Venture 31 Transforming into a New Lux FAST-TRACK
Slide 18: Strengths
STRENGTHS 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 Integration: Capitalising on synergies through merger with
Slide 19: Manufacturing
MANUFACTURING Yarn Present in yarn sourcing Flexible core manufacturing till packaging process Manufacturing Key focus areas: quality, cost Completed upgradation and Process effectiveness and innovation replacement of old equipment Cutting Investment on cutting Garment pieces manufactured machines f
Slide 20: New Markets
NEW MARKETS Domestic Sales (%) Share of revenues from value, From a innerwear pureplay Focus on premium semi-premium and premium to a mix of athleisure and innerwear range: 18 21 products category of FY21 outerwear player Current Market share – ₹228 Crore in FY21 Revenue share Amount % Volume % 3 Ex
Slide 21: Multi-Channel Footprint
MULTI-CHANNEL FOOTPRINT ▪ Growing wholesale Adopting investment-light market presence #FOFO model Dealer attrition ▪ Association with 1,150+ dealers with focused engagement initiatives Strong presence in Target revenue of ₹100 Cr by Depots drive faster Average daily online multi-brand outlets and on
Slide 22: Branding
BRANDING Building brands judiciously Branding investments in the last five years, leading to FY21 Amitabh Bachchan, Virat Kohli, Varun Dhawan, Kartik Aaryan, Taapsee Pannu are brand endorsers Average share of revenues spent on branding (FY17-FY21) Sponsored KKR team in the IPL to enhance brand respe
Slide 23: Branding
BRANDING 1 2 3 Creating Innovative products Sustaining Successful brand and launches brand across different promotion price point 6 5 4 Clear and Evolving Strengthening consistent brand communication endorsement product salience compatibility 7 8 Messaging around desired Translating brand strengths
Slide 24: Digitalisation
DIGITALISATION End-to-end IT solutions through Enhanced MIS system for business dealer integration systems visibility; data-based Process decision-making Timeline Change Led by Bibek Maity, CIO and his Invested in SAP-Hana and Internal Team People 25-member team SAP rollout across the Experience org
Slide 25: Financials
FINANCIALS Overhauled credit policy to strengthen working capital ROCE, FY21 Debtor-turnover in FY20 Debtor-turnover in FY21 Deleveraged balance sheet and Revenue Growth, FY20-FY21 Inventory cycle in FY20 Inventory cycle in FY21 created strong liquidity buffer Cash and cash equivalents, FY21 Credito
Slide 26: Leadership Profile
LEADERSHIP PROFILE Ashok Kumar Todi Pradip Kumar Todi Chairman Managing Director • Visionary, Founder and Promoter • Founder and Promoter • Commerce Graduate; engaged in the hosiery business • Commerce Graduate for over five decades • Primarily focuses on product development and production • Forte l
Slide 27: Next Generation
NEXT GENERATION 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) from MICA Economics (Hons.) from St. •
Slide 28: Management
MANAGEMENT Saurabh Kumar Bhudolia Smita Mishra Sanjay Mittal Chief Financial Officer Company Secretary & Compliance Officer Vice President (Sales) • Qualified Chartered Accountant • Qualified Company Secretary, associated with the • Has led and supported various leadership roles for • 18+ years of e
Slide 29: Management
MANAGEMENT Mr. Bibek Narendra Maity Panjwani Surendra Kumar Bajaj Narendra Panjwani Head Chief of Information Quality Control Officer Vice President (Marketing) Head of Quality Control • Postgraduate (MBA & MCA) • 35+ years of experience in marketing industry • Bachelor of Science • 22+ years of exp
Slide 30: New Venture
NEW VENTURE Impressive portfolio Company’s critical Endorsed by Virat Kohli (innerwear, loungewear, margin driver and has huge growth Revenues in 2020-21 Expected revenues in sleepwear) potential 2024-25 Created an inorganic, and new distribution channel Independent and dedicated manufacturing Brain
Slide 31: Transforming into a New Lux
TRANSFORMING INTO A NEW LUX 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 innerwear, Strengthene
Slide 32: Financial Performance
33 Financial performance Lux Industries Limited
Slide 33: Performance: FY21
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT FY21 FY20 FY21 FY20 FY21 FY20 1,965 1,674 684 585 269 177 In ₹ crore % % EBITDA Gross Margin PAT Margin FY21 FY20 FY21 FY20 FY21 FY20 393 275 35 35 13.71 10.59 % In ₹ crore EBITDA Margin Net Cash Flow FY21 FY20 FY21 FY20 19.99 16.
Slide 34: Performance: Q4 FY21
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 601 404 227 136 91 41 In ₹ crore % % EBITDA Gross Margin PAT Margin Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 129 66 38 34 15.07 10.28 % In ₹ crore EBITDA Margin Net Cash Flow
Slide 35: Performance: Sales by Category
PERFORMANCE FY 21 Category NSV FY 21 NSV FY 20 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 228 214 7% 1% 10% Mid- Premium 1099 969 13% 7% 8% Economy 616 474 30% 21% 6% Total 1943 1657 17% 13% 4% Q4 FY 21 Category NSV FY 21 NSV FY 20 Sales Growth Volume Growth ASP Growth
Slide 36: Cash Flow
PERFORMANCE In ₹ crore Cash Flow March 2021 March 2020 Net Cash flow from Operations 388.54 152.68 Cash flow from / (used in) investing activities (176.54) (44.24) Cash flow from / (used in) in financing activities (133.37) (130.48) Net increase / (decrease) in cash and cash equivalents 78.63 (22.04
Slide 37: Performance Highlights
PERFORMANCE Revenue for the quarter is at Margin for the quarter stands Advertisement spend for the EBITDA stands at ₹ 129 Crore an all-time high with a top at 37.68% year is around ₹ 106 Crore @ @21.45% with an line of ₹ 601 Crore and a 5.4% of Total Income improvement of 507 basis growth of 49% po
Slide 38: Performance: FY20 vs FY21
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 393 1,965 269 20 14 16 275 11 177 1,674 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 Lux Industries Limited 38
Slide 39: Performance: Q4 FY20 vs Q4 FY21
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 129 15 21 91 601 16 10 404 66 41 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 Lux Industries Limited 39
Slide 40: Capital Employed, Cash and RoCE
PERFORMANCE Capital Employed ₹ (Cr) Cash and Cash Equivalents* ₹ (Cr) RoCE (%) Net Worth ₹ (Cr) 36 1,038 34 1,001 261 768 738 46 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 *Gross cash and cash equivalents Lux Industries Limited 40
Slide 41: Turnover Days and Debt-Equity
PERFORMANCE Inventory Turnover (days) Credit Turnover (days) Working Capital Turnover (days) Debt – Equity (Ratio) 109 160 52 0.32 89 45 122 0.12 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 Lux Industries Limited 41
Slide 42: Environment, Sustainability, CSR
43 Environment 44 Sustainability 45 CSR Lux Industries Limited
Slide 43: Environment
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 40-45% of our total save water power requirements met through renewable sources Substantial electricity Reducing carbon cost reduction footpri
Slide 44: Sustainability
SUSTAINABILITY 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 Manufacturing locally and maximising local so
Slide 45: CSR
CSR Built the Saraswati Sishu Mandir School at Bali (Murshidabad) Providing quality education to local and tribal children Partnership and consultation with NGOs, registered trusts and Section 8 companies Saraswati Sishu Mandir School at Bali (Murshidabad) Students enrolled Lux Industries Limited 45
Slide 46: CSR
CSR 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 population economically underpriv
Slide 47: CSR
CSR Regular temperature Distributed free food checks and periodic packets to 3000+ people sanitisation at the Company premises Free distribution of Replaced biometric with Conducting regular temperature checks disposable masks to all face detector attendance teams system Hot Kadha (ayurvedic drink)
Slide 48: Disclaimer
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 securities, and sh
Slide 49: For Further Information, Please Contact
For further information, please contact Company : Investor Relations Advisors : CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 Mr. Saurabh Kumar Bhudolia Mr. Jigar Kavaiya +91 9920602034 saurabh.bhudolia@luxinnerwear.com jigar.kavaiya@sgapl.net www.luxinnerwear.com www.sgapl.net