Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q3 FY23 Earnings Presentation
48 slides from Lux Industries's earnings presentation, Feb 9, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
February 09, 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 Presenta
Slide 2: Lux Industries Limited Corporate Presentation Q3 FY23
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I Q3 FY 23
Slide 3: What's Inside
WHAT’S INSIDE ESG Fast-track progress 03 ESG 17 Strengths 24 Financials 04 CSR 18 Manufacturing 25 Leadership Profile 19 New Markets 26 Next Generation 20 Multi- Channel Footprint 27 Management 21 Branding 29 New Venture 23 Digitalisation 30 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 Encourage Sports activities Providing Education to drinking water benefiting art & culture u
Slide 6: Corporate
06 At a glance 07 Milestone 08 Product Portfolio 10 Presence 11 Export presence 12 Governance CORP ORAT E
Slide 7: At a Glance: Ensuring Everyday Comfort for Decades
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-
Slide 8: Milestone
MILESTONE Shri. Giridhari Lal Todi • Commissioned Eastern India’s • Varun Dhawan roped in as • Setting up of new founded Biswanath Hosiery largest hosiery product brand ambassador of Lux Cozi manufacturing facility at Mills manufacturing plant in Dankuni Hosiery Park, Kolkata • Relaunched brand 'Lux
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 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 YTD Dec’22 Lux Indus tries Limited 09
Slide 11: Presence: Widening and Deepening Reach
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 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) Algeria Thailand Nigeria Morocco Benin Hong Kong Burkina Fas
Slide 13: Governance
GOVERNANCE Experienced Board Strong Management Team Restructured business • Promoter-Directors with 24 years of • Inducted several new members in the recent processes average industry experience; expertise- years Sales & Marketing, Brand Promotion, • New members include: Product Development, Board s
Slide 14: 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 15: Opportunity Landscape
15 Opportunity landscape Lux Indus tries 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 New Venture 30 Transforming into a New Lux FA S T - T RA CK Lux Indus tries 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 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 machines Garment pieces manufactured from Italy, Germa
Slide 20: New Markets
NEW MARKETS Domestic Sales (%) Share of revenues from value, From an innerwear Focus on premium 23% 16% semi-premium and premium pureplay to a mix of innerwear range: products category of YTD Dec'22 athleisure and outerwear Current Market share – player ₹246 Crore in YTD Dec'22 4% Revenue share Amou
Slide 21: 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 Depots drive faster Average daily online multi-brand outlets and from
Slide 22: Branding
BRANDING Building brands judiciously Branding investments in the last six years +, leading to Q3 FY23 Salman Khan, Sourav Ganguly, Virat Kohli, Varun Dhawan, Boman Irani, Taapsee Pannu are brand endorsers Average share of revenues spent on branding (FY17- Q3 FY23) Sponsored KKR team in the IPL to en
Slide 23: Branding: Creating 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 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 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 ROCE, YE Mar'22 Working Capital Days in Working Capital Days in YTD Dec’21** YTD Dec'22 Deleveraged balance sheet and Sales Growth, YTD Dec'22 vs Dec'21 Inventory cycle in YTD Dec’21** Inventory cycle in YTD Dec'22 created strong liqu
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: New Venture
NEW VENTURE Impressive portfolio Company’s critical Endorsed by Virat Kohli (innerwear, loungewear, margin driver and has huge growth Expected revenues in sleepwear) potential 2024-25 Revenues in YTD Dec'22 Created an inorganic, and new distribution channel Independent and dedicated manufacturing Br
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
32 Financial performance Lux Indus tries Limited
Slide 33: Performance: Nine Months
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Dec'22 Dec'21 Dec'22 Dec'21 Dec'22 Dec'21 1673 1720 531.9 656.9 107.6 264.9 In ₹ crore % % EBITDA Gross Margin PAT Margin Dec'22 Dec'21 Dec'22 Dec'21 Dec'22 Dec'21 181.1 377.2 31.8 38.2 6.4 15.4 % In ₹ crore EBITDA Margin Cash and
Slide 34: Performance: Quarter
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Dec'22 Dec'21 Dec'22 Dec'21 Dec'22 Dec'21 462.5 668 143.5 251.3 16.6 101.2 In ₹ crore % % EBITDA Gross Margin PAT Margin Dec'22 Dec'21 Dec'22 Dec'21 Dec'22 Dec'21 35.9 145.2 31.0 37.6 3.60 15.2 % In ₹ crore EBITDA Margin Cash and
Slide 35: Performance: Nine Months by Category
PERFORMANCE Nine Months Ended Category NSV Dec'22 NSV Dec'21 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 246 225 9.4% -1.7% 11.3% Mid- Premium 940 937 0.2% -8.7% 9.8% Economy 467 536 -12.9% -21.2% 10.5% Total 1653 1698 -2.7% -14.2% 13.4% Lux Indus tries Limited 34
Slide 36: Cash Flow
PERFORMANCE In ₹ crore Cash Flow Dec’22 Dec’21 Net Cash flow from/ (used in) Operations 113.86 (145.77) Cash flow from / (used in) investing activities (50.68) 44.52 Cash flow from / (used in) in financing activities (52.39) 82.54 Net increase / (decrease) in cash and cash equivalents (10.79) (18.71
Slide 37: Performance Highlights
PERFORMANCE Revenue for the year to date EBITDA stands at ₹ 181 Crores Sales growth in ONN by 25% and Lyra 20% is at ₹ 1673 Crore. @10.8% coupled with 5% growth in winter wear segment Decline in Gross Margin Gross margin for the year to date Dec'22 Gross Cash reserve stands at ₹ 141 Crores mainly be
Slide 38: Revenue, EBITDA and PAT
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) PAT ₹ (Cr) 1,720 1,673 377 265 181 108 Y T D D E C'21 Y T D D E C'22 Y T D D E C'21 Y T D D E C'22 Y T D D E C'21 Y T D D E C'22 Key points: ▪ Increase in raw material costs have been absorbed by the Company leading to lower margins. However, the yarn prices
Slide 39: Turnover Days
PERFORMANCE Inventory Turnover (days)* 129 Credit Turnover (days)* Debtor Turnover (days)* Working Capital Turnover (days)* 108 119 97 192 48 45 168 YTD YTD YTD YTD YTD YTD YTD YTD D E C'21 D E C'22 D E C'21 D E C'22 D E C'21 D E C'22 D E C'21 D E C'22 *Computed on the basis of extrapolated quarterl
Slide 40: Capital Employed, Cash, RoCE, Net Worth
PERFORMANCE Capital Employed ₹ (Cr) Cash and Cash Equivalents ₹ (Cr) RoCE (%) Net Worth ₹ (Cr) 1,411 1,459 1,348 35 1,303 15 63 52 MAR'22 D E C'22 M AR '22 D E C'22 MAR'22 D E C'22 MAR'22 D E C'22 Lux Indus tries Limited 39
Slide 41: Environment, Sustainability, CSR
41 Environment 42 Sustainability 43 CSR Lux Indus tries 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: 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, out of which ₹ 1.25 Cr has already been spent. Built the Saraswati Sishu Mandir School at Bali (Murshidabad) Contributed ₹ 1.5 crores to Dhanuka Dhunseri
Slide 45: CSR: Project Status
CSR Current Status of Project Proposed Lux Indus tries Limited 44
Slide 46: CSR: Healthcare Support
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 investors@luxinnerwear.com Mr. Jigar Kavaiya +91 9920602034 jigar.kavaiya@sgapl.net www.luxinnerwear.com www.sgapl.net