Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q2 FY23 Earnings Presentation
50 slides from Lux Industries's earnings presentation, September 2022
Slide 1: Lux Industries Limited Corporate Presentation Q2 FY23
LUX INDUSTRIES LIMITED CORPORATE PRESENTATION I Q2 FY 23
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 HYE Sep’22 Bud
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 12-15% 9-11% Upto 9% Others Presence across price segments helps the Company cater to a wide customer base and fast-track growth *Note : Net sales revenue of HYE Sep’22 Lux Industries Limited 09
Slide 10: Merger
MERGER Group companies – Ebell Fashions Private Limited and J.M. Hosiery EPS in HYE Sep'22 and Co Limited merged with Lux Industries Limited Benefits of the Merger Market growth EPS in HYE Sep’21 EPS accretive Expand product portfolio Expand into newer markets and segments Strong positioni
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 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 30.09.22 Experienced Board Strong Management Team Restructured business 12.77% • Promoter-Directors with 24 years of • Inducted several new members in the processes 4.74% average industry experience; expertise- past two years Sales & Marketing, Brand Promotion, • New
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
16 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
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 RAC K 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 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 a innerwear pureplay Focus on premium 15% semi-premium and premium to a mix of athleisure and innerwear range: 23% products category of HYE Sep'22 outerwear player Current Market share – ₹160 Crore in HYE Sep'22 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
BRANDING Building brands judiciously Branding investments in the last six years +, leading to Q2 FY23 Amitabh Bachchan, Virat Kohli, Varun Dhawan, Kartik Aaryan, Taapsee Pannu are brand endorsers Average share of revenues spent on branding (FY17- Q2 FY23) Sponsored KKR team in the IPL to enhance bra
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
FINANCIALS Overhauled credit policy to strengthen working capital ROCE, YE Mar'22 Working Capital Days in Working Capital Days in HYE Sep'21 HYE Sep'22 Deleveraged balance sheet and Sales Growth, HYE Sep'22 vs Sep'21 Inventory cycle in HYE Sep'21 Inventory cycle in HYE Sep'22 created strong liquidit
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 HYE Sep'22 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: Half Year Consolidated
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Sep'22 Sep'21 Sep'22 Sep'21 Sep'22 Sep'21 1210.01 1051.95 388.36 405.62 91.07 163.76 In ₹ crore % % EBITDA Gross Margin PAT Margin Sep'22 Sep'21 Sep'22 Sep'21 Sep'22 Sep'21 145.09 231.96 32.1 38.6 7.5 15.6 % In ₹ crore EBITDA Marg
Slide 34: Performance: Half Year Standalone
PERFORMANCE In ₹ crore In ₹ crore In ₹ crore Revenue Gross Profit PAT Sep'22 Sep'21 Sep'22 Sep'21 Sep'22 Sep'21 638.32 630.86 204.43 244.10 41.09 100.04 In ₹ crore % % EBITDA Gross Margin PAT Margin Sep'22 Sep'21 Sep'22 Sep'21 Sep'22 Sep'21 67.29 141.00 32.0 38.7 6.4 15.9 % In ₹ crore EBITDA Margin
Slide 35: Half Year Sales by Category
PERFORMANCE Half Year Ended Category NSV Sep'22 NSV Sep'21 Sales Growth Volume Growth ASP Growth (in ₹ crores) (in ₹ crores) Premium 161 144 12% -9% 23% Mid- Premium 685 578 19% 13% 5% Economy 351 315 11% -1% 13% Total 1197 1037 15% 3% 12% Lux Industries Limited 35
Slide 36: Cash Flow
PERFORMANCE In ₹ crore Cash Flow Sep’22 Sep’21 Net Cash flow from Operations (59.02) (108.42) Cash flow from / (used in) investing activities (1.61) 53.51 Cash flow from / (used in) in financing activities 44.91 37.19 Net increase / (decrease) in cash and cash equivalents (15.72) (17.78) Cash and ca
Slide 37: Quarterly Margins
PERFORMANCE 38% 39% 38% 37% 32% 32% 22% 22% 22% 19% 21% 20% 20% 17% 14% 15% 16% 15% 11% 12% 12% 9% 9% 6% June-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Margin % EBITDA % PBT % PAT % * The ratios have been computed quarterly for the above mentioned periods Lux Industries Limited 37
Slide 38: Half Year Highlights
PERFORMANCE Revenue for the Half year is Gross margin for the Half Volume growth @3% led by EBITDA stands at ₹ 145 Crore at ₹ 1210 Crore with a growth Year Ended Sep'22 stands at Onn @49% and Lyra @37% @11.99% with an decline of of 15% 32.10% declined by 646 basis 1006 basis points over HYE points a
Slide 39: Revenue, EBITDA and PAT Consolidated
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 232 1,210 164 22 1,052 16 145 91 12 8 HYE HYE HYE HYE HYE HYE HYE HYE HYE HYE SEP'21 SEP'22 SEP'21 SEP'22 SEP'21 SEP'22 SEP'21 SEP'22 SEP'21 SEP'22 Lux Industries Limited 39
Slide 40: Revenue, EBITDA and PAT Standalone
PERFORMANCE Revenue ₹ (Cr) EBITDA ₹ (Cr) EBITDA Margin (%) PAT ₹ (Cr) PAT Margin (%) 638 141 631 22 100 16 11 67 41 6 HYE HYE HYE HYE HYE HYE HYE HYE HYE HYE SEP'21 SEP'22 SEP'21 SEP'22 SEP'21 SEP'22 SEP'21 SEP'22 SEP'21 SEP'22 Lux Industries Limited 40
Slide 41: Turnover Days
PERFORMANCE Inventory Turnover (days)* Credit Turnover (days)* Debtor Turnover (days)* Working Capital Turnover (days)* 127 121 63 121 202 101 159 46 HYE HYE HYE HYE HYE HYE HYE HYE SEP'21 SEP'22 SEP'21 SEP'22 SEP'21 SEP'22 SEP'21 SEP'22 *Computed on the basis of extrapolated quarterly sales to annu
Slide 42: Capital Employed, RoCE and Net Worth
PERFORMANCE Capital Employed ₹ (Cr) Cash and Cash Equivalents* ₹ (Cr) RoCE (%) Net Worth ₹ (Cr) 1,395 1,438 35 1,348 19 140 1,303 82 MAR'22 SEP'22 MAR'22 SEP'22 MAR'22 SEP'22 MAR'22 SEP'22 *Gross cash and cash equivalents Lux Industries Limited 42
Slide 43: Environment, Sustainability, CSR
44 Environment 45 Sustainability 46 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
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: 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 ₹ 75 lacs have already been spent. Built the Saraswati Sishu Mandir School at Bali (Murshidabad) Contributed ₹ 1.5 crores to Dhanuka Dhunseri
Slide 47: CSR Project Status
CSR Current Status of Project Proposed Lux Industries Limited 47
Slide 48: 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 49: 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 50: 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