Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Investor Presentation (November 2020)
34 slides from Lux Industries's investor presentation, Nov 10, 2020
Slide 1: Cover letter to stock exchanges
Lax > November 10, 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 (£), Dalal Street, Mumbai — 400 051 Mumbai- 400 001 Symbol: LUXIND Scrip Code: 539542 Dear Sir, Sub: Investor Pr
Slide 2: Lux Industries Limited Investor Presentation – November 2020
Lux 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 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: Financial Performance
KARISHMA COTT’s MOZZE WOOL GLO INFERNO BIG SHOT Q2 & H1 FY20 COZI ONN CLASSIC TOUC Financial Performance VENUS H GENX
Slide 5: 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 6: Resilient Business Model
Resilient Business Model Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) 9% 37% 25% 388 74 51 355 41 -6% +34% 54 +64% 263 247 47 31 35 19 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Q1FY20 Q1FY21 Q2FY20 Q2FY21 Business growing continuously inspite of CoVID-19 5
Slide 7: Strong Growth Momentum
Strong Growth Momentum Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) 1210 190 H2 FY20 H2 FY21 123 H2 FY21 592 H2 FY21 H2 FY20 100 H2 FY20 64 H1 FY21 H1 FY21 H1 FY20 +35%* H1 FY21 +3%* H1 FY20 121 +37%* 618 635 H1 FY20 81 90 59 FY20 FY21 FY20 FY21 FY20 FY21 H2 FY21 is expected t
Slide 8: Sustained Returns
Sustained Returns Return on Equity (RoE) Net Debt to Equity (x) 28.7% 1.0 24.4% 24.0% 24.7% Inspite of CoVID times, Lux Industries has reduced Working Capital requirements and paid off debt Mar-18 Mar-19 Mar-20 Sep-20 We are a Net Cash Company 0.4 Return on Capital Employed (RoCE) 0.3 35.1% 29.8% 27
Slide 9: Q2 & H1 FY21 Consolidated Financial Highlights
Q2 & H1 FY21 Consolidated Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) +3% +35% +37% 618 635 121 81 +9% +37% +25% 90 59 355 388 74 51 54 41 Q2 FY20 Q2 FY21 H1FY20 H1FY21 Q2 FY20 Q2 FY21 H1FY20 H1FY21 Q2 FY20 Q2 FY21 H1FY20 H1FY21 EBITDA Margins (%) PAT Ma
Slide 10: Q2 & H1 FY21 Consolidated Profit & Loss Account
Q2 & H1 FY21 Consolidated Profit & Loss Account* Consolidated Particulars (Rs. In Cr)* Q2 FY21 Q2 FY20 Y-o-Y H1 FY21 H1 FY20 Y-o-Y Total Income from Operations 387.8 354.9 9% 635.0 618.0 3% Raw Material Cost 164.1 168.5 293.4 268.1 Employee Expenses 12.7 12.5 21.6 24.0 Subcontracting / Jobbing expen
Slide 11: Consolidated Balance Sheet as on 30th Sept, 2020
Consolidated Balance Sheet* as on 30th Sept, 2020 Particulars (Rs. Crores)* Sept - 20 Mar - 20 Particulars (Rs. Crores)* Sept - 20 Mar - 20 Equity Non Current assets Property, Plant and Equipment 131.2 127.0 Equity Share capital 5.3 5.3 Capital work-in-progress 1.3 0.8 Other Equity 566.2 490.2 Intan
Slide 12: Consolidated Cash Flow Statement
FY20 Consolidated Cash Flow Statement* Six months ending 30th Six months ending 30th Year ended 31st Mar, 2020 Particulars (Rs. Crores)* September 2020 September 2019 (Apr’2019 – Mar’2020) Net Profit Before Tax 109.1 77.0 163.4 Adjustments for: Non-Cash Items / Other Investment or Financial Items 12
Slide 13: Proforma Financials
Proforma Financials Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* Q2 FY21 Revenues (Rs. Crs.) Revenues (Rs. Crs.)^ +37% +11% -33% 53 532 91 79 91 388 82 53 Lux Industries JM Hosiery Ebell Fashions TOTAL Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Revenue (Rs. In Cr) J. M. Hosiery* Ebell Fashions* H1 FY20 R
Slide 14: Strong Foundation
KARISHMA COTT’s MOZZE WOOL GLO INFERNO BIG SHOT COZI ONN Strong Foundation CLASSIC TOUC VENUS H GENX
Slide 15: 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 16: 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 20% transformation from un- Mass, Semi Premium & organized to brand driven Increase in Premium Brand Premium contribution to revenue & Expandi
Slide 17: 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 20% in the next 2-3 years 15-18% Premium Revenue : 46% EBITDA Margin : 13-15% Med Premium Revenue : 33% EBITDA Margin : 8-10% … Fro
Slide 18: 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 19: 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 20: We are poised to Grow
We are 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) 19
Slide 21: 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 22: We are led by Experienced Leadership
We are led by Experienced Leadership Mr. Ashok Kumar Todi Mr. Pradip Kumar Todi Chairman Managing Director His forte lies in Marketing of the products and formulating Presently looking after the Product Development and Production various policies for Growth & Expansion of the business on Forte
Slide 23: 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 24: We are honoured by 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 23
Slide 25: Market Penetration Strategy
KARISHMA COTT’s MOZZE WOOL GLO INFERNO BIG SHOT COZI Market Penetration Strategy ONN CLASSIC TOUC VENUS H GENX
Slide 26: 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 27: 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 26
Slide 28: 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 29: 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 89 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 S
Slide 30: 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 31: 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 32: Historical Performance
KARISHMA COTT’s MOZZE WOOL GLO INFERNO BIG SHOT COZI ONN Historical Performance CLASSIC TOUC VENUS H GENX
Slide 33: Operating Performance
Operating Performance Revenue (Rs. In Cr) PAT (Rs. In Cr) EBITDA & PAT Margins (%) EBITDA% PAT% +8% 1,216 1,210 123 14.5% 15.70% 15.4% 1,079 +29% 99 12.6% 909 941 960 78 10.0% 871 8.9% 10.10% 51 60 8.0% 8.1% 713 45 7.2% 31 6.3% 6.2% 5.0% 5.5% 20 3.6% 2.9% FY13 FY14 FY15 FY16 FY17 FY18* FY19 FY20 FY1
Slide 34: Contact details
Company : Investor Relations Advisors : KARISHMA COTT’s MOZZE WOOL GLO INFERNO BIG SHOT COZI ONN CLASSIC CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 TOUC Mr. Ajay Patodia ajay.patodia@luxinnerwear.com Mr. Deven Dhruva +91 9833373300 deven.dhruva@sgapl.net VENUS H GENX Mr. Abhishek Shah +91
Lux Industries — Investor Presentation (November 2020) on 6ix