Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q4 FY2023 Earnings Presentation
46 slides from Lux Industries's earnings presentation, May 30, 2023
Slide 1: Cover letter to stock exchanges: Investor Presentation
May 30, 2023. 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 Presentation.
Slide 2: Lux Industries Limited Corporate Presentation Q4 & FY23
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I Q4 & FY 23
Slide 3: What's Inside
WHAT’S INSIDE Market 03 Market Outlook & Company Update Fast-track progress 17 Strengths 24 Financials 18 Manufacturing 25 Leadership Profile 19 New Markets 26 Next Generation Corporate identity 20 Multi- Channel Footprint 27 Management 05 At a glance 21 Branding 29 Transforming into a New Lux 06 Mi
Slide 4: Market Outlook & Company Update
MARKET MARKET OUTLOOK & COMPANY UPDATE Market Sluggish post festive Brand Performance Gradual softening of demand post Diwali. Clear shift towards organized segment Demand recovery seen at year end. Recorded highest quarterly sales in Q4 led by strong Delayed onset of winter affinity for our
Slide 5: Corporate Identity
05 At a glance 06 Milestone 07 Brand Portfolio 08 Product Portfolio 09 Prominent Brand Margins 10 Presence 11 Export presence 12 Governance 13 Internal Controls C O R P O R AT E
Slide 6: At a Glance
AT A GLANCE ENSURING EVERYDAY COMFORT FOR DECADES Lux group 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 7 state-of-the-art
Slide 7: Milestone
MILESTONE Shri. Giridhari Lal Todi • Amitabh Bachchan became • Onboarded Jacqueline founded Biswanath Hosiery • Varun Dhawan roped in as face of the brands of Lux Fernandez and Vijay Mills brand ambassador of Lux Cozi Deverakonda as brand • Launched 'Lyra' lingerie ambassador’s for Lux Cozi • Lux Cl
Slide 8: Brand Portfolio
BRAND PORTFOLIO Men’s Kidswear Innerwear Vest Vest Mega Men’s Innerwear Womenswear Brief Brief Briefs Innerwear Trunk Trunk Vests Brassieres T-Shirt Half Pant Boxers Panties Track Pants T Shirts Camisole T-Shirt Shapewear Mens Outerwear T- Shirt Half Pant Womenswear Track Pant Joggers Outerwear Jack
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 ** Note : Net sales revenue of YE Mar’23 Lux Industries Limited 0
Slide 10: Prominent Brand Margins
PROMINENT BRAND MARGINS *Total Revenue Margins Prominent brands in ₹ Cr 10-13% 8-10% Upto 8% Others Presence across price segments helps the Company cater to a wide customer base and fast-track growth *Note : Net sales revenue of YE Mar’23 Lux Industries Limited 09
Slide 11: Presence
PRESENCE WIDENING AND DEEPENING REACH 1,170+ dealers' Available in 2 lakh+ multi- Stronger e-retail platform 11 Depots drive faster network brand stores and 9 EBOs presence distribution in India Strategically located manufacturing units (West Bengal, Punjab, Tamil Nadu and Uttar Sales teams drive of
Slide 12: Export Presence
EXPORT PRESENCE Iraq Kuwait Saudi Qatar Star Export Market traction in Germany Arabia Bahrain UAE Oman House tropical countries Chad Sudan Nepal recognition (including GCC Mali Niger Jordan Myanmar by region and Africa) Government Algeria Thailand Nigeria of India Morocco Benin Hong Kong Burkina Fas
Slide 13: Governance
GOVERNANCE Experienced Board Strong Management Team • Promoter-Directors with 25+ years of • Inducted several new members in the recent average industry experience; expertise- years Sales & Marketing, Brand Promotion, • New members include: Product Development, Board service & Udai Kumar Agarwal- CO
Slide 14: Governance: Robust risk-management framework
GOVERNANCE Robust risk-management Minimal manual framework interventions Procure Well implemented to Pay IT General Cyber Security Inventory Controls & Management Regulatory framework Compliance Organisation-wide Execution excellence accountability through: Inbound & Outbound Well-defined Human
Slide 15: Opportunity Landscape
15 Opportunity landscape Lux Industries Limited
Slide 16: Opportunity Landscape
OPPORTUNITY LANDSCAPE 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 Lux industries Dan
Slide 17: Fast-Track
17 Strengths 18 Manufacturing 19 New Markets 20 Multi- Channel Footprint 21 Branding 23 Digitalisation 24 Financials 25 Leadership Profile 26 Next Generation 27 Management 29 Transforming into a New Lux FAST-TRACK Lux Industries Limited
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 Quality: Creating new benchmarks Efficiency: Presence acros
Slide 19: Manufacturing
MANUFACTURING Yarn Demonstrated manufacturing Flexible core manufacturing excellence for over 3 decades process Ability to consistently deliver high Manufacturing Key focus areas: quality, cost quality products on timely basis Process effectiveness and innovation Completed upgradation and replacemen
Slide 20: New Markets
NEW MARKETS Domestic Sales (%) Share of revenues from value, From an innerwear Focus on premium 15% semi-premium and premium pureplay to a mix of innerwear range: 23% products category of YE Mar’23 athleisure and outerwear - ₹349 Crore in YE Mar’23 player Revenue share Amount % Volume % - Expected ₹
Slide 21: Multi-Channel Footprint
MULTI-CHANNEL FOOTPRINT Growing wholesale Adopting investment-light market presence #FOFO model Association with 1,170+ dealers with focused engagement initiatives Strong presence in Target revenue of ₹100 Cr multi-brand outlets and from online sales in next 3 large format stores years Dealer at
Slide 22: Branding
BRANDING Building brands judiciously Branding investments in the last seven years including Salman Khan, Sourav FY23 Ganguly, Vijay Deverakonda, Varun Dhawan, Boman Irani, Average share of revenues Taapsee Pannu are spent on branding brand endorsers (FY17- FY23) Sponsored KKR team in the IPL to enha
Slide 23: Branding: Creating a successful brand
BRANDING 1 2 3 Creating Innovative products Sustaining Successful brand and launches brand across different promotion price point 6 5 4 Clear and consistent Evolving Strengthening brand product communication endorsement 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 Rollout new website Internal Team People 25-member team “www.onninternational.com” Experience dire
Slide 25: Financials
FINANCIALS Overhauled credit policy to strengthen working capital Working Capital Days in Working Capital Days in ROCE, YE Mar’23 YE Mar’22 YE Mar’23 Deleveraged balance sheet and Inventory cycle in YE Mar’22 Inventory cycle in YE Mar’23 created strong liquidity buffer Sales Growth, YE Mar’23 vs YE
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 Udai Kumar Agarwal Smita Mishra Sanjay Mittal Chief Operating Officer - COO Company Secretary & Compliance Officer Vice President (Sales) • Qualified Chartered Accountant and Cost • Qualified Company Secretary, associated with the • Has led and supported various leadership roles for Manag
Slide 29: Management
MANAGEMENT Mr. Bibek Narendra Maity Panjwani Surendra Kumar Bajaj Prateek Agarwal Head Chief of Information Quality Control Officer Vice President (Marketing) GM – IT & New Initiatives • Postgraduate (MBA & MCA) • 35+ years of experience in marketing industry • Qualified Chartered Accountant and Com
Slide 30: 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 31: Business Highlights / Financial Performance
31 Business Highlights 32 Financial performance Lux Industries Limited
Slide 32: Business Highlights
BUSINESS HIGHLIGHTS FINANCIAL POWER GROWTH DRIVERS PERFORMANCE BRANDS DIGITAL PLAY BRAND INVESTMENT 3.7% annual YoY sales Power brands ONN and Pivoting from primarily Substantial investment Long Standing growth Lyra registering annual offline to Omni-channel in brand building Relationships with grow
Slide 33: Performance: Q4 FY23 and FY23
PERFORMANCE Revenue (₹ In Crores) EBITDA (₹ In Crores) PAT (₹ In Crores) Growth (%) 19.07% EBIDTA EBIDTA Margin PAT PAT Margin 22% 12.33% 725 7.18% Q4FY23 593 73.10 113.07 4.12% 52.09 29.84 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 Q4 FY 22 Q4 FY 23 Revenue (₹ In Crores) EBITDA (₹ In Crores) PAT (₹ In Cro
Slide 34: Performance: Working Capital and Capital Employed
PERFORMANCE Inventory Turnover (days) Credit Turnover (days) Debtor Turnover (days) Working Capital Turnover (days) 132 50 122 188 176 46 104 102 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 FY 22 FY 23 Capital Employed (₹ In Crores) Cash and Cash Equivalents (₹ In Crores) RoCE (%) Net Worth (₹ In Crores) 15
Slide 35: Performance: Sales by Category
PERFORMANCE Year Ended Category NSV Mar’23 NSV Mar’22 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 349 309 12.8% 5.2% 7.3% Mid- Premium 1225 1184 3.5% 1.2% 2.2% Economy 788 790 -0.3% -6.3% 6.5% Total 2362 2283 3.4% -2.1% 5.7% Lux Industries Limited 34
Slide 36: Performance: Cash Flow
PERFORMANCE In ₹ crore Cash Flow Mar’23 Mar’22 Net Cash flow from/ (used in) Operations 180.82 (228.47) Cash flow from / (used in) investing activities (88.46) 43.80 Cash flow from / (used in) in financing activities (117.66) 152.43 Net increase / (decrease) in cash and cash equivalents (25.30) (32.
Slide 37: ESG, Sustainability, CSR, Environment
37 ESG 38 Sustainability 39 CSR 43 Environment Lux Industries Limited
Slide 38: 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 39: 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 40: CSR
CSR Supporting economically Addressing environment Supporting 180+ elderly Focusing on animal welfare backward people through sustainability people benefiting 500+ cows various measures such as by building rest rooms Making available safe Promotion of traditional Encourage Sports activities Providin
Slide 41: CSR
CSR Commitment for support of ₹ 2 crores towards the building of a free residential school project for over 1000+ unprivileged girls in Joka, WB has been fulfilled. Built the Saraswati Sishu Mandir School at Bali (Murshidabad) Contributed ₹ 1.5 crores to Dhanuka Dhunseri Foundation for promotion of
Slide 42: 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 43: CSR: Current Status of Project
CSR Current Status of Project Proposed Lux Industries Limited 42
Slide 44: 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 30-40% of our total save water power requirements met through renewable sources Substantial electricity Installations of Capacitors cost reduc
Slide 45: 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 46: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 investors@luxinnerwear.com Mr. Jigar Kavaiya +91 9920602034 jigar.kavaiya@sgapl.net www.luxinnerwear.com www.sgapl.net