Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q1 FY22 Earnings Presentation
48 slides from Lux Industries's earnings presentation, Jul 27, 2021
Slide 1: Cover letter to stock exchanges
LLx@> July 27, 2021. 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 Presen
Slide 2: Lux Industries Limited Corporate Presentation Q1 FY22
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I Q1 FY 22
Slide 3: 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 27 Next Generation 21 Multi- Channel Footprint 28 Management 22 Branding 30 New Venture 24 Digitalisation 31 Transforming into a New Lux Corporate identity 06 At a gla
Slide 4: 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 5: 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 Actual CSR expenditure (Q1 FY 22) Bud
Slide 6: 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 7: 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 8: 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 9: 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 10: Product Portfolio
PRODUCT PORTFOLIO *Total Revenue Margin Prominent brands in ₹ Cr 22-26% 15-21% Upto 15% Others Presence across price segments helps the Company cater to a wide customer base and fast-track growth *Note : Net sales revenue of Q1 2021-22 Lux Industries Limited 09
Slide 11: Merger
MERGER Group companies – Ebell Fashions Private Limited and J.M. Hosiery EPS in Q1 FY22 (post-merger) and Co Limited merged with Lux Industries Limited EPS in Q1 FY21 (post-merger) Benefits of the Merger ▪ Market growth ▪ EPS accretive Shares of Lux (post-merger state) ▪ Expand product portfolio ▪ E
Slide 12: Presence: Widening and Deepening Reach
PRESENCE WIDENING AND DEEPENING REACH 1,170+ dealers' Available in 2 lakh+ multi- Stronger e-retail platform 12 Depots drive faster network brand stores and 16 EBOs presence distribution in India Strategically located Exclusive brand outlets manufacturing units (target by FY23) (West Bengal, Punjab,
Slide 13: 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 14: Governance
GOVERNANCE Shareholding pattern 30.6.21 Experienced Board Strong Management Team Restructured business 14.36 • Promoter-Directors with 24 years of • Inducted several new members in the processes average industry experience; expertise- past two years 6.44 Sales & Marketing, Brand Promotion, • New mem
Slide 15: Governance: Robust 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 16: Opportunity Landscape
16 Opportunity landscape Lux Industries Limited
Slide 17: 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 Gross cash balance Districts-presence in India innerwear Additional revenue genera
Slide 18: Fast-Track
18 Strengths 19 Manufacturing 20 New Markets 21 Multi- Channel Footprint 22 Branding 24 Digitalisation 25 Financials 26 Leadership Profile 27 Next Generation 28 Management 30 New Venture 31 Transforming into a New Lux FAST-TRACK Lux Industries Limited
Slide 19: 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 20: Manufacturing
MANUFACTURING Yarn Present in yarn sourcing Flexible core manufacturing till packaging process Key focus areas: quality, cost Completed upgradation and effectiveness and innovation replacement of old Manufacturing equipment Process Investment on cutting Garment pieces manufactured machines from Ital
Slide 21: New Markets
NEW MARKETS Domestic Sales (%) Share of revenues from value, From a innerwear pureplay Focus on premium 19 semi-premium and premium to a mix of athleisure and innerwear range: 25 products category of Q1 FY22 outerwear player Current Market share – ₹57 Crore in Q1 FY22 Revenue share Amount % Volume %
Slide 22: Multi-Channel Footprint
MULTI-CHANNEL FOOTPRINT ▪ Growing wholesale Adopting investment-light market presence #FOFO model Dealer attrition ▪ Association with 1,170+ 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 23: Branding
BRANDING Building brands judiciously Branding investments in the last five years +, leading to Q1 FY22 Amitabh Bachchan, Virat Kohli, Varun Dhawan, Kartik Aaryan, Taapsee Pannu are brand endorsers Average share of revenues spent on branding (FY17- Q1 FY22) Sponsored KKR team in the IPL to enhance br
Slide 24: 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 25: 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 26: Financials
FINANCIALS Overhauled credit policy to strengthen working capital ROCE, FY21* Debtor-turnover in Q1 FY21** Debtor-turnover in Q1 FY22** Deleveraged balance sheet and Sales Growth Q1 FY 22 – Q1 FY 21 Inventory cycle in Q1 FY21** Inventory cycle in Q1 FY22** created strong liquidity buffer Cash and ca
Slide 27: 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 28: 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 29: 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 30: 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 31: New Venture
NEW VENTURE Impressive portfolio Company’s critical Endorsed by Virat Kohli (innerwear, loungewear, margin driver and has huge growth Revenues in Q1 2021-22 Expected revenues in sleepwear) potential 2024-25 Created an inorganic, and new distribution channel Independent and dedicated manufacturing Br
Slide 32: 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 33: Financial Performance
33 Financial performance Lux Industries Limited
Slide 34: Performance
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 421.09 319.25 161.52 97.63 63.72 36.82 In ₹ crore % % EBITDA Gross Margin PAT Margin Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 90.96 57.04 38.36 30.58 15.13 11.53 % In ₹ crore
Slide 35: Quarter Segment Analysis
PERFORMANCE Quarter Segment Analysis Category NSV Q1 FY 22 NSV Q1 FY 21 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 57 24 136% 111% 12% Mid- Premium 195 150 30% 12% 20% Economy 165 139 19% -2% 22% Total 417 313 33% 9% 24% Lux Industries Limited 34
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 ₹ 91 Crore ₹ 421 Crore with a growth of at 38% year is around ₹ 26 Crore @ @21.60% with an 32% 6% of Total Income improvement of 373 basis points over Q1' FY 2021 PBT and PAT for the
Slide 38: Revenue, EBITDA and PAT
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 91 22 421 15 64 18 12 319 57 37 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 Lux Industries Limited 37
Slide 39: Turnover Days
PERFORMANCE Inventory Turnover (days)* Credit Turnover (days)* Debtor Turnover (days)* Working Capital Turnover (days)* 107 131 178 126 61 165 55 95 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 * Computed on the basis of extrapolated quarterly sales to annualized numbers Lux Indus
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 39
Slide 41: Environment, Sustainability, CSR
41 Environment 42 Sustainability 44 CSR Lux Industries Limited
Slide 42: 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 43: 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 44: Sustainability
SUSTAINABILITY Organized vaccination Distributed free food drive for around 1600 packets to 3000+ people people including employees and their loved ones Free distribution of Replaced biometric with oximeter and oxygen face detector attendance concentrators to the system needy Regular temperature che
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 44
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: 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 48: 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