Lumax Industries Limited · NSE:LUMAXIND
Lumax Industries — Q2 FY2021 Earnings Presentation
65 slides from Lumax Industries's earnings presentation, Nov 9, 2020
Slide 1: Cover letter to stock exchanges
LUMnx* lll:CS:IP:2020-21 Date : 09.11.2020 BSE Limited The National Stock Exchange of India Limited listing & Compliance Department listing & Compliance Department Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1 Block G, Dalal Street, Mumbai • 400001 Sandra Kurla Complex, Sandra (E), Mumbai - 400051
Slide 2: Lumax Industries Limited Investor Presentation - November 2020
Lumax Industries Limited Investor Presentation - November 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Lumax 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 secu
Slide 4: DK Jain Group
DK Jain Group Leader in Automotive Lighting & Seven Decade Strong Gear Shifters 15 Entities in 8 States 33 Manufacturing Facilities 4 R&D Centres (India) Over 9,000 Employees & 1 Design Centre (Taiwan) 3
Slide 5: Two Listed Entities
Two Listed Entities Lumax Industries Limited Group Revenue Break Up (%) Products & Services FY20 Revenue of Rs. 2,900 Cr End-to-end Automotive Lighting Solutions HVAC Panels and other electronic components Partnerships • Stanley – Japan 5% • SL Corporation - Korea 55% Lumax Auto Technologies Limited
Slide 6: Purpose, Vision & Values
Purpose, Vision & Values LUMAX # 1K JAIN sna manna OUR GROUP OUR VALUES OUR VISION PURPOSE Resovect Buising vt admired We celiver . high performance ; Integrity pride gnty phal orqarisetion ir and Passion whom all scekebalde = progress ‘ veh Excellence Lee apen ee a positivity * x LUMAX — ral
Slide 7: Diversified Product Range – 4-wheelers & CV
Diversified Product Range – 4-wheelers & CV Telematics Products & Services Antennas HVAC Panel Transmission Products ▪ Destination Boards & Urea Tanks for Commercial Vehicle Aftermarket products 6
Slide 8: Diversified Product Range – 2-wheelers
Diversified Product Range – 2-wheelers 7
Slide 9: Diversified Product Range – Commercial Vehicles
Diversified Product Range – Commercial Vehicles 8
Slide 10: Diversified Product Range – Farm Equipment Sector (FES)
Diversified Product Range – Farm Equipment Sector (FES) Revolving Lamp Rear Fender Lamp Engine lamp Head Lamp Work Lamp Front Fender Lamp 9
Slide 11: Fostering Partnerships to Deliver Excellence
Fostering Partnerships to Deliver Excellence Japan Korea Italy JV FOR LIGHTING, HVAC PANELS JV FOR LIGHTING AND OTHER JV FOR EMISSION SYSTEMS AND OTHER ELECTRONICS AUTOMOTIVE PARTS Relationship Since 1984 Relationship Since 1997 Relationship Since 2007 37.5% in Lumax 78.72% in SL Lumax 50% in Lumax
Slide 12: Fostering Partnerships to Deliver Excellence
Fostering Partnerships to Deliver Excellence JAPAN ISRAEL SPAIN EXCLUSIVE DISTRIBUTORSHIP JV FOR SALE OF TELEMATICS AGREEMENT PRODUCTS AND SERVICES JV FOR OXYGEN SENSORS Relationship Since 2017 Relationship Since 2017 Relationship Since 2014 50% in Lumax Ituran Telematics Pvt. Ltd. 49% in Lumax FAE
Slide 13: 33 Locations close to Customers
33 Locations close to Customers State Mfg Locations # Haryana Bawal 1 Dharuhera 1 Gurugram 3 Manesar 4 Maharashtra Pune 9 Waluj 3 Karnataka Bengaluru 2 Gujarat Sanand 1 Facilities Location Mehsana 1 Gurugram, Manesar, R&D Centre Tamil Nadu Sriperumbudur 1 Pune Design Centre Taiwan Andhra Anantpur 1
Slide 14: Enhanced 360° Customer View
Enhanced 360°Customer View Understand the Customer ▪ A real understanding of varying customer needs & the capability to deliver outstanding results Environmental Conscious Experienced Team ▪ Environment-conscious work ▪ Highly Qualified & Experienced practices workforce of dedicated professionals Te
Slide 15: Relationships with Diversified Customers
Relationships with Diversified Customers Two Wheeler Four Wheeler Commercial Vehicle Tier 1 The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 14
Slide 16: Relationships with Diversified Customers … Strong After Market Exports Presence
Relationships with Diversified Customers Tractor/FES Export Defence & Aero Space … Strong After Market Exports Presence The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 15
Slide 17: Lumax Industries Limited
Lumax Industries Limited Driving Leadership in Automotive Lighting
Slide 18: Milestone
Milestone 1985: Setup a manufacturing unit in 1981: Lumax Industries Gurugram, Haryana. Pvt Limited established The company went 1945: Founded a after taking over partnership firm public & is listed on partnership firm Globe the stock exchange 1997-98 ‘Globe Auto Industries’ Auto Industries as a Tra
Slide 19: Milestone
Milestone …2005 -2020 a period of strategic expansion 2010: Setup a manufacturing plant in Haridwar, Uttarakhand 2007: Further Equity 2018-20 participation by Stanley, 2011: Setup Japan manufacturing plants in Bawal, Haryana; Sanand, 2008: Setup Gujarat & Bidadi, manufacturing plant in Karnataka. Al
Slide 20: Competitive Advantages
Competitive Advantages Market Leaders Leadership in Lighting Partnerships With more than three & half decades of Product Portfolio partnership with Stanley, Japan, the only One of the few players with largest global auto lighting company to manufacture range of lighting solutions & LED worldwide, ha
Slide 21: Product Mix Q2FY21
Product Mix Q2FY21 Product wise Sales Q2FY20 (Rs. 386 Crores)* Product wise Sales Q2FY21 (Rs. 376 Crores)* 7% 9% 27% 25% 66% 66% Front Lighting Rear Lighting Others Front Lighting Rear Lighting Others Front Lighting – Head Lamp & Fog Lamp Rear Lighting –Tail Lamp & High Mount Stop Lamp * Excludes Mo
Slide 22: Product Mix H1FY21
Product Mix H1FY21 Product wise Sales H1FY20 (Rs. 777 Crores)* Product wise Sales H1FY21 (Rs. 450 Crores)* 8% 9% 26% 24% 66% 67% Front Lighting Rear Lighting Others Front Lighting Rear Lighting Others Front Lighting – Head Lamp & Fog Lamp Rear Lighting –Tail Lamp & High Mount Stop Lamp * Excludes Mo
Slide 23: Segment Mix Q2FY21
Segment Mix Q2FY21 Segment wise Sales Q2FY20 (Rs. 386 Crores)* Segment wise Sales Q2FY21 (Rs. 376 Crores)* 6% 5% 31% 35% 63% 60% Passenger Vehicles 2-Wheelers Commercial Vehicles Passenger Vehicles 2-Wheelers Commercial Vehicles * Excludes Mould Sales 22
Slide 24: Segment Mix H1FY21
Segment Mix H1FY21 Segment wise Sales H1FY20 (Rs. 777 Crores)* Segment wise Sales H1FY21 (Rs. 450 Crores)* 6% 6% 30% 33% 64% 61% Passenger Vehicles 2-Wheelers Commercial Vehicles Passenger Vehicles 2-Wheelers Commercial Vehicles * Excludes Mould Sales 23
Slide 25: Customer Mix Q2FY21
Customer Mix Q2FY21 Customer wise Sales Q2FY20 (Rs. 386 Crores)* Customer wise Sales Q2FY21 (Rs. 376 Crores)* 58 , 15% 146 , 38% 138 , 37% 70 , 18% 15 , 4% 17 , 5% 21 , 6% 17 , 4% 30 , 8% 31 , 8% 42 , 11% 48 , 13% 63 , 16% 65 , 17% Figures in Rs. Crores MSIL/SMG HMSI HML M&M TATA HCIL Others MSIL/SM
Slide 26: Customer Mix H1FY21
Customer Mix H1FY21 Customer wise Sales H1FY20 (Rs. 777 Crores)* Customer wise Sales H1FY21 (Rs. 450 Crores)* 132 , 17% 73 , 16% 170 , 38% 296 , 38% 19 , 4% 38 , 5% 40 , 5% 25 , 6% 35 , 8% 65 , 8% 84 , 11% 61 , 14% 122 , 66 , 15% 16% Figures in Rs. Crores MSIL/SMG HMSI HML M&M TATA HCIL Others MSIL/
Slide 27: LED Lighting vs Conventional Lighting
LED Lighting vs Conventional Lighting Product wise Sales FY20 (Rs. 1,471 Crores)* Product wise Sales H1FY21 (Rs. 450 Crores)* 34% 35% 66% 65% Conventional Lighting LED Lighting Conventional Lighting LED Lighting * Excludes Mould Sales 26
Slide 28: SL Lumax Limited
SL Lumax Limited Sales Breakup SL Lumax Limited FY20 – Rs. 1,402 Crores Associate Company with 21.28% holding 30% Plants in Sriperumbudur near Chennai and Anantapur in Andhra Pradesh In partnership with SL Corporation, Korea, a multinational automotive player with presence in Asia-Pacific, Europe &
Slide 29: Strong Customer Base
Strong Customer Base … Four Wheeler Two Wheeler Commercial Vehicle Export Tractor /FES … Servicing almost 90% of OE Customers in India … 28 The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
Slide 30: From Strategic Locations in Key Auto Belts of India
… From Strategic Locations … Pantnagar Dharuhera Bawal Haridwar Gurugram Chakan Manesar Chinchwad Sanand SL Lumax Ltd Andhra Pradesh SL Lumax Ltd Chennai Bengaluru R&D Centre & Design Centre … in Key Auto Belts of India R&D Centre Gurugram Pune Map not to scale. All data, information and maps are pr
Slide 31: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities 30
Slide 32: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities 31
Slide 33: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities 32
Slide 34: In-house R&D & Validation Facility
…In-house R&D & Validation Facility 33
Slide 35: In-house Design Studio
.. In-house Design Studio LUMNAX 34
Slide 36: Share Holding as of 30th September 2020
Share Holding as of 30th September 2020 Shareholding breakup Stanley Electric Company Ltd Over three and a half decades of strong technical & financial collaboration with Stanley Electric DK Jain Company Ltd, Japan Others 25.00% Family 37.50% A world leader in Vehicle Lighting & Illumination product
Slide 37: Promoter Group
Promoter Group Mr. Dhanesh Kumar Jain Mr. Deepak Jain Mr. Anmol Jain Chairman Emeritus Chairman & Managing Director Jt. Managing Director ▪ He is 78 years of age & holds a MBA ▪ He is 45 years of age & is a Business Graduate ▪ He is 41 years of age & holds degree from Delhi university & has from Ill
Slide 38: Promoter Group
Promoter Group Mr. Tadayoshi Aoki Mr. Toru Tanabe Mr. Kenjiro Nakazono Senior Executive Director Non-Executive Director Executive Director ▪ He is 54 years old & is a ▪ He is 61 years old & is a ▪ He is 50 years old & is a Mechanical Engineering from graduate from Hosei graduate from graduate from T
Slide 39: Supported by Strong Independent Directors
…Supported by Strong Independent Directors Mr. A P Gandhi Mr. Rajeev Kapoor Mr. M.C. Gupta Mr. Dhiraj Dhar Gupta Mr. Ratan Kapur Ms. Ritika Modi • He is 82 years old & is a • He is 68 years old and • He is 82 years old and is • He is 70 years old and • He is 63 years old & is • She is 54 years old a
Slide 40: Professional & Experienced Team
Professional & Experienced Team Mr. Vineet Sahni Mr. Sanjay Mehta Mr. Naval Khanna Mr. Shrutikant Rustagi Mr. Raajesh Gupta CEO & Sr Executive Director Group CFO Corporate Head – Taxation Chief Financial Officer Group Company Secretary Age: 55 years Age: 53 years Age: 63 years Age: 50 Years Age: 51
Slide 41: The Path Ahead
LUMNAX The Path Ahead
Slide 42: Rear Lamp – Technology Evolution
Rear Lamp – Technology Evolution Split type Tail Lamp Tail Lamp with LED All LED Tail Lamp 3D LED Tail lamp Adaptive rear Lighting Signature and Tail function 2011-12 2013-mid of 2014 End of 2014 - 2015 2016 2017 onwards • Tail lamps were • New Styling • Penetration of • Almost all the new • All the
Slide 43: Head Lamp – Technology Evolution
Head Lamp – Technology Evolution Head Lamp with Bulb Projector Head Lamp All LED Head Lamp Head Lamp with bulb + Led Head Lamp with LED Projector DRL and LED DRL 2011-13 2014-15 2016-17 2017-20 • Head Lamps with Halogen Bulbs • Introduction of Projector Lamps • Almost all the models were • The futur
Slide 44: Leveraging on our Strengths for LED Market
Leveraging on our Strengths for LED Market The Market Scenario Increased styling demands Creating revenue Influencing the cost of by OEMs to individualise & opportunities for Tier I lighting cluster differentiate suppliers Partnership with Stanley Electric - Stanley is one of the Auto Lighting compa
Slide 45: Financials
LUMNAX Financials
Slide 46: Strong Growth in Total Income with Healthy Margins
Strong Growth in Total Income with Healthy Margins Revenue Reported EBITDA# 7.40% +305 Bps 10.45% +6% 1,851.5 1,649.4 1,601.6 +16% 1,255.2 1,270.9 178.7 167.4 143.0 92.9 106.8 475.3 9.2 FY16 FY17* FY18* FY19* FY20* H1FY21* FY16 FY17* FY18* FY19* FY20* H1FY21* PAT Cash PAT 2.98% +153 Bps 4.51% +16% 1
Slide 47: Expansion funded through Internal Accruals
Expansion funded through Internal Accruals Gross Block Long Term Loan 1,214 1,231 52.9 1,047 973 41.1 812 36.0 760 13.0 5.0 2.7 FY16 FY17* FY18* FY19* FY20* H1FY21* FY16 FY17* FY18* FY19* FY20* H1FY21* Capex Long Term Debt / Equity 162.0 167.4 0.21 0.14 94.0 0.11 70.0 52.0 0.05 20.7 0.02 0.01 FY16 F
Slide 48: Healthy Return Ratios
Healthy Return Ratios ROE (%) ROCE (%) 21.6 21.1 32.0 32.0 18.3 18.0 18.8 25.6 26.0 24.0 FY16 FY17* FY18* FY19* FY20* FY16 FY17* FY18* FY19* FY20* Dividend (% of Face Value) EPS (in Rs.) 350 114.9 230 235 77.3 67.7 145 49.3 120 40.0 FY16 FY17* FY18* FY19*^ FY20* FY16 FY17* FY18* FY19* FY20* ^ Total
Slide 49: Q2FY21 Highlights - Consolidated
Q2FY21 Highlights - Consolidated Revenue EBIDTA* PAT 10.2% 10.4% 4.7% 1.8% 429 44 20 397 41 7 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 The lower PAT is mainly on-account of lower profitability in Associate Company, SL Lumax due to one- time price reduction from customer. Rs. Crores * Including othe
Slide 50: H1FY21 Highlights - Consolidated
H1FY21 Highlights - Consolidated Revenue EBIDTA* PAT 10.0% 1.9% 4.4% -5.0% 831 83 37 475 9 H1FY20 H1FY21 H1FY20 H1FY21 -24 H1FY20 H1FY21 HI Numbers are not comparable due to abnormal QI of FY21 because of Covid 19 Rs. Crores * Including other income 49
Slide 51: Consolidated P&L Statement
Consolidated P&L Statement Particulars (Rs. in Crores.) Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 Manufacturing Revenue 375.9 385.8 449.8 776.9 Molds Revenue 21.4 43.2 25.5 54.2 Total Operating Revenue 397.3 429.0 475.3 831.1 Other Income 4.6 1.2 7.5 2.3 Total Income 401.9 430.2 482.8 833.3 Raw Material 251.8
Slide 52: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. in Crores) Sep-20 Mar-20 EQUITY & LIABILITIES Sep-20 Mar-20 Non-current assets Property, plant and equipment 602.0 612.6 Equity Capital work-in-progress 24.3 32.2 Equity Share capital 9.3 9.3 Right of use assets 22.9 23.8 Other equity 406.7 437.1 Investment pro
Slide 53: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs in Cr) H1FY21 H1FY20 PBT -44.1 49.1 Adjustments 47.2 37.9 Operating profit before working capital changes 3.1 87.1 Changes in working capital -34.4 -50.8 Cash generated from operations -31.3 36.3 Direct taxes paid (net of refund) -7.3 5.4 Net Cash fro
Slide 54: Standalone P&L Statement
Standalone P&L Statement Particulars (Rs. in Crores.) Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 Manufacturing Revenue 375.9 385.8 449.8 776.9 Molds Revenue 21.4 43.2 25.5 54.2 Total Operating Revenue 397.3 429.0 475.3 831.1 Other Income 4.6 3.5 7.5 4.6 Total Income 401.9 432.5 482.8 835.6 Raw Material 251.8 2
Slide 55: Standalone Balance Sheet
Standalone Balance Sheet ASSETS (Rs. in Crores) Sep-20 Mar-20 EQUITY & LIABILITIES Sep-20 Mar-20 Non-current assets Equity Property, Plant and Equipment 602.0 612.6 Capital work-in-progress 24.3 32.2 Equity Share capital 9.3 9.3 Right of use assets 22.9 23.8 Other equity 349.2 375.1 Investment prope
Slide 56: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (Rs in Cr) H1FY21 H1FY20 PBT -37.1 44.8 Adjustments 40.2 42.0 Operating profit before working capital changes 3.1 86.8 Changes in working capital -34.4 -50.5 Cash generated from operations -31.3 36.3 Direct taxes paid (net of refund) -7.3 5.4 Net Cash from
Slide 57: Awards & Recognitions
LUMNAX Awards & Recognitions
Slide 58: Awards & Recognition
Awards & Recognition Lumax Industries Limited, Dharuhera won JIPM-TPM award for excellence in Category A for year 2019 Lumax Industries Limited, Dharuhera won the Gold Award in Excellence in Inclusive Growth - A Make in India Drive - Very Large Category at the ACMA Technology Summit & Awards held in
Slide 59: Awards & Recognition
Awards & Recognition Lumax Industries Limited, Chakan won the Silver Award in Excellence in New Product Design & Development at the ACMA Technology Summit & Awards in November, 2019. Lumax Industries Limited, Pantnagar won the Gold Award in Excellence in Supplier Development - Very Large Category at
Slide 60: Awards & Recognition
Awards & Recognition Lumax Industries Limited bagged The Gold Award Won the prestigious Gold award for Top 100 best at ICQCC for the third year in a row in FY20. annual report for excellence within its industry for Each of our plants located at Haridwar, Bawal & the past fiscal year. Bangluru have b
Slide 61: Awards & Recognition
Awards & Recognition Lumax Industries bagged four prestigious awards from ACMA for Manufacturing Excellence, Excellence in Inclusive Growth, Excellence in Technology - Product Innovation and Excellence in Supplier Development in 2019. Lumax Industries Limited, Dharuhera bagged the Gold Award in Digi
Slide 62: Awards & Recognition
Awards & Recognition HMSI Awards for New Product Development SML Isuzu Award for Design and Development
Slide 63: TPM Award
TPM Award JIPM Award for Excellence in Consistent TPM JIPM-TPM Excellence Award Bengaluru Plant, Commitment Pantnagar Plant, 2019 2019 JIPM-TPM Excellence Award Pantnagar Plant, JIPM-TPM Excellence Award Bawal Plant, March 2014 November 2017 62
Slide 64: CSR Initiatives
CSR Initiatives Towards its endeavour to give back to society, the group has taken various initiatives towards Education of the underprivileged. Four schools in the NCR region, close to its facilities have been adopted, starting with improving its infrastructure, to facilitating the annual fee so as
Slide 65: For further information, please contact:
For further information, please contact: Company: Investor Relations Advisors: Lumax Industries Limited Strategic Growth Advisors Pvt. Limited CIN: L74899DL1981PLC012804 CIN: U74140MH2010PTC204285 Ms. Priyanka Sharma Mr. Shogun Jain / Ms. Akashi Modi priyanka.sharma@lumaxmail.com shogun.jain@sgapl.n