Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q3 FY22 Earnings Presentation
51 slides from Lux Industries's earnings presentation, December 2021
Slide 1: Lux Industries Limited Corporate Presentation Q3 FY22
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I Q3 FY 22
Slide 2: 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 3: 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 4: 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 (YTD Dec'21) B
Slide 5: 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 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-
Slide 7: 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 8: Product Portfolio
PRODUCT PORTFOLIO Winter **Total Categories Prominent brands Wear Revenue 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 9: Product Portfolio
PRODUCT PORTFOLIO *Total Margin Prominent brands Revenue in ₹ Cr 22-26% 17-21% Upto 17% 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'21 Lux Industries Limited 09
Slide 10: Merger
MERGER Group companies – Ebell Fashions Private Limited and J.M. Hosiery EPS in YTD Dec'21 (post-merger) and Co Limited merged with Lux Industries Limited EPS in YTD Dec'20 (post-merger) Benefits of the Merger Market growth EPS accretive Shares of Lux (post-merger state) Expand product portfol
Slide 11: 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 25 EBOs presence distribution in India Strategically located Exclusive brand outlets manufacturing units (target by FY23) (West Bengal, Punjab,
Slide 12: Export Presence
EXPORT PRESENCE Iraq Kuwait Saudi Qatar Star Export House Market traction in Germany Arabia Bahrain UAE Oman recognition by tropical countries Chad Sudan Nepal Government of India (including GCC Mali Jordan Myanmar Niger region and Africa) Thailand Algeria Nigeria Morocco Benin Hong Kong Burkina Fas
Slide 13: Governance
GOVERNANCE Shareholding pattern 31.12.21 Experienced Board Strong Management Team 15.84% Restructured business • Promoter-Directors with 24 years of • Inducted several new members in the processes average industry experience; expertise- past two years Sales & Marketing, Brand Promotion, 6.66% • New
Slide 14: Governance: 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
16 Opportunity landscape Lux Industries Limited
Slide 16: 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 17: 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 FA ST -T RACK Lux Industries Limited
Slide 18: Strengths: Lux Value System
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 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 cutting Garment pieces manufactured machines from Ital
Slide 20: New Markets
NEW MARKETS Domestic Sales (%) Share of revenues from value, From a innerwear pureplay Focus on premium 16 semi-premium and premium to a mix of athleisure and innerwear range: 23 products category of YTD Dec'21 outerwear player Current Market share – ₹226 Crore in YTD Dec'21 4 Revenue share Amount %
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 by Depots drive faster Average daily online multi-brand outlets and on
Slide 22: Branding: Building Brands Judiciously
BRANDING Building brands judiciously Branding investments in the last five years +, leading to Q3 FY22 Amitabh Bachchan, Virat Kohli, Varun Dhawan, Kartik Aaryan, Taapsee Pannu are brand endorsers Average share of revenues spent on branding (FY17- Q3 FY22) Sponsored KKR team in the IPL to enhance br
Slide 23: 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 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 Invested in SAP-Hana and Internal Team People 25-member team SAP rollout across the Experience org
Slide 25: Financials: Working Capital and Liquidity
FINANCIALS Overhauled credit policy to strengthen working capital ROCE, YTD Dec'21 Working Capital Days in Working Capital Days in YTD Dec'20** YTD Dec'21** Deleveraged balance sheet and Sales Growth YTD Dec'21 vs Inventory cycle in YTD Dec'20** Inventory cycle in YTD Dec'21** Dec'20 created strong
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 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 29: 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 30: New Venture
NEW VENTURE Impressive portfolio Company’s critical Endorsed by Virat Kohli (innerwear, loungewear, margin driver and has huge growth Revenues in YTD Dec'21 Expected revenues in sleepwear) potential 2024-25 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
33 Financial performance Lux Industries Limited
Slide 33: Performance: Nine Months Dec'21
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Dec'21 Dec'20 Dec'21 Dec'20 Dec'21 Dec'20 1719.96 1363.55 656.91 457.22 264.96 178.74 In ₹ crore % % EBITDA Gross Margin PAT Margin Dec'21 Dec'20 Dec'21 Dec'20 Dec'21 Dec'20 377.20 263.73 38.19 33.53 15.41 13.11 % In ₹ crore EBITD
Slide 34: Performance: Q3 FY22
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Dec'21 Dec'20 Dec'21 Dec'20 Dec'21 Dec'20 668.01 539.79 251.29 191.84 101.20 75.20 In ₹ crore % % EBITDA Gross Margin PAT Margin Dec'21 Dec'20 Dec'21 Dec'20 Dec'21 Dec'20 145.24 109.02 37.62 35.54 15.15 13.93 % In ₹ crore EBITDA M
Slide 35: Performance: Sales by Category
PERFORMANCE Nine Months Ended Category NSV Dec'21 NSV Dec'20 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 226 149 52% 35% 13% Mid- Premium 936 790 19% 5% 13% Economy 536 407 32% 3% 27% Total 1698 1346 26% 6% 18% Quarter Ended Category NSV Dec'21 NSV Dec'20 Sales Growth V
Slide 36: Cash Flow
PERFORMANCE In ₹ crore Cash Flow Dec'21 Dec'20 Net Cash flow from Operations (145.77) 369.16 Cash flow from / (used in) investing activities 44.51 (92.94) Cash flow from / (used in) in financing activities 82.54 (146.86) Net increase / (decrease) in cash and cash equivalents (18.72) 129.36 Cash and
Slide 37: Margin Trends
PERFORMANCE 38% 38% 39% 38% 36% 21% 22% 22% 22% 20% 20% 20% 21% 20% 19% 15% 15% 16% 15% 14% Dec-20 Mar-21 June-21 Sep-21 Dec-21 Margin % EBITDA % PBT % PAT % * The ratios have been computed quarterly for the above mentioned periods Lux Industries Limited 37
Slide 38: Performance Highlights
PERFORMANCE Revenue for the year to date Gross margin for the Nine Growth led by premium EBITDA stands at ₹ 377 Crore is at ₹ 1719.96 Crore with a Months stands at 38.19% category @ 53%, well @21.93% with an growth of 26% improved by 466 basis points supported by mid-premium improvement of 259 basis
Slide 39: Revenue, EBITDA and PAT: Nine Months
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 377 1,720 22 265 15 19 1,364 264 13 179 YT D YT D YT D YT D YT D YT D YT D YT D YT D YT D DEC'20 DEC'21 DEC'20 DEC'21 DEC'20 DEC'21 DEC'20 DEC'21 DEC'20 DEC'21 Lux Industries Limited 39
Slide 40: Revenue, EBITDA and PAT: Q3
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 145 22 101 15 20 14 668 109 540 75 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 F Y2 1 F Y2 2 F Y2 1 F Y2 2 F Y2 1 F Y2 2 F Y2 1 F Y2 2 F Y2 1 F Y2 2 Lux Industries Limited 40
Slide 41: Turnover Days
PERFORMANCE Inventory Turnover (days)* Credit Turnover (days)* Debtor Turnover (days)* Working Capital Turnover (days)* 168 52 119 48 97 85 122 89 YE YT D YE YT D YE YT D YE YT D MAR'21 DEC'21 MAR'21 DEC'21 MAR'21 DEC'21 MAR'21 DEC'21 *Computed on the basis of extrapolated nine month sales to annual
Slide 42: Capital Employed, Cash, RoCE, Net Worth
PERFORMANCE Capital Employed ₹ (Cr) Cash and Cash Equivalents* ₹ (Cr) RoCE (%) Net Worth ₹ (Cr) 1,277 1,230 38 36 1,038 275 1,001 164 MAR'21 DEC'21 MAR'21 DEC'21 MAR'21 DEC'21 MAR'21 DEC'21 *Gross cash and cash equivalents Lux Industries Limited 42
Slide 43: Environment, Sustainability, CSR
44 Environment 45 Sustainability 47 CSR Lux Industries Limited
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 40-45% of our total save water power requirements met through renewable sources Substantial electricity Reducing carbon cost reduction footpri
Slide 45: Sustainability: Action and Impact
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 46: Sustainability: Covid Relief
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 47: CSR: Education
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 ₹ 75 lacs have already been spent. Built the Saraswati Sishu Mandir School at Bali (Murshidabad) Providing quality education to local and tri
Slide 48: CSR: Status of Projects
CSR Current Status of Project Proposed Lux Industries Limited 48
Slide 49: CSR: Healthcare
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 50: 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 51: 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