Lumax Industries Limited · NSE:LUMAXIND
Lumax Industries — 9MFY19 Earnings Presentation
61 slides from Lumax Industries's earnings presentation, Feb 6, 2019
Slide 1: Investor Presentation cover letter to exchanges
CIN: L74B99DL1981PLC012804 LUMNAX LIL:CS :1P:2018-19 Date : 06.02.2019 BSE Limited The National Stock Exchange of India Limited Ist Floor, Rotunda Building Listing Department P.J Towers, Dalal Street, Fort Exchange Plaza, C-1 Block G, Mumbai - 400 001 Bandra Kurla Complex, Bandra (E), Mumbai-400051
Slide 2: Lumax Industries Limited Investor Presentation - February 2019
Lumax Industries Limited Investor Presentation - February 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Lumax 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 secu
Slide 4: DK Jain Group
DK Jain Group Leader in Automotive Lighting & Seven Decade Strong Gear Shifters 13 Entities in 8 States 28 Manufacturing Facilities 3 R&D Centres (India) Over 9,000 Employees & 1 Design Centre (Taiwan) 3
Slide 5: Two Listed Entities
Two Listed Entities Lumax Industries Limited Group Revenue Break Up (%) Products & Services FY18 Revenue of Rs. 2,950 Cr End-to-end Automotive Lighting Solutions Partnerships • Stanley – Japan 6% • SL Corporation - Korea 56% Lumax Auto Technologies Limited Products & Services Intake Systems, Integra
Slide 6: Purpose, Vision & Values
Purpose, Vision & Values GROUP PURPOSE We deliver pride and progress with positivity VISION Building an admired high performance global organisation in whom all stakeholders have absolute trust VALUES Respect | Integrity | Passion | Excellence 5
Slide 7: Diversified Product Range – 4-wheelers & CV
Diversified Product Range – 4-wheelers & CV ▪ Destination Boards & Urea Tanks for Commercial Vehicle ▪ Telematics Products & Services Aftermarket products 6
Slide 8: Diversified Product Range – 2-wheelers
Diversified Product Range – 2-wheelers Aftermarket products 7
Slide 9: Fostering Partnerships to Deliver Excellence
Fostering Partnerships to Deliver Excellence Japan Korea Italy Japan JV for Lighting and other JV for Gear Shifters JV for Lighting JV for Emission Systems automotive parts Relationship Since 1984 Relationship Since 1997 Relationship Since 2007 Relationship Since 2008 37.5% in Lumax Industries 78.72
Slide 10: 28 Locations close to Customers
28 Locations close to Customers State Mfg Locations # Haryana Bawal 1 Dharuhera 1 Gurugram 2 Manesar 3 Maharashtra Pune 8 Waluj 3 Karnataka Bengaluru 2 Gujarat Sanand 1 Facilities Location Mehsana 1 Gurugram, Manesar, R&D Centre Tamil Nadu Sriperumbudur 1 Pune Design Centre Taiwan Uttarakhand Haridw
Slide 11: Enhanced 360° Customer View
Enhanced 360°Customer View Understand the Customer ▪ A real understanding of varying customer needs & the capability to deliver outstanding results Environmental Conscious Experienced Team ▪ Environment-conscious work ▪ Highly Qualified & Experienced practices workforce of dedicated professionals Te
Slide 12: Relationships with Diversified Customers
Relationships with Diversified Customers Two Wheeler Four Wheeler Commercial Vehicle Tier 1 11
Slide 13: Relationships with Diversified Customers … Strong After Market Exports Presence
Relationships with Diversified Customers Tractor/FES Export Defence & Aero Space … Strong After Market Exports Presence 12
Slide 14: Lumax Industries Limited
Lumax Industries Limited Driving Leadership in Automotive Lighting
Slide 15: Milestone
Milestone 1985: Setup a manufacturing unit in 1981: Lumax Industries Gurugram, Haryana. Pvt Limited established The company went 1945: Founded a after taking over partnership firm public & is listed on partnership firm Globe the stock exchange 1997-98 ‘Globe Auto Industries’ Auto Industries as a Tra
Slide 16: Milestone
Milestone …2005 -2019 a period of strategic expansion 2010: Setup a manufacturing plant in Haridwar, Uttarakhand 2007: Further Equity participation by Stanley, 2011: Setup Japan manufacturing plants in Bawal, Haryana; Sanand, 2008: Setup Gujarat & Bidadi, 2017-19 manufacturing plant in Karnataka. Al
Slide 17: Competitive Advantages
Competitive Advantages Market Leaders Leadership in Lighting Partnerships With more than 3 decades of partnership Product Portfolio with Stanley, Japan, the only global auto One of the few players with largest lighting company to manufacture LED range of lighting solutions worldwide, having presence
Slide 18: 9MFY19: Product Mix
9MFY19: Product Mix Product wise Sales 9MFY18 (Rs. 1,057 Crores)* Product wise Sales 9MFY19 (Rs. 1,410 Crores)* 11% 10% 20% 25% 65% 69% Front Lighting Rear Lighting Others Front Lighting Rear Lighting Others Front Lighting – Head Lamp & Fog Lamp Rear Lighting –Tail Lamp & High Mount Stop Lamp * Excl
Slide 19: Q3FY19: Segment Mix
Q3FY19: Segment Mix Segment Wise Sales Q3FY18 (Rs. 363 Crores)* Segment Wise Sales Q3FY19 (Rs. 415 Crores)* 6% 7% 23% 26% 71% 67% Passenger Vehicles 2-Wheelers Commercial Vehicles Passenger Vehicles 2-Wheelers Commercial Vehicles * Excludes Mould Sales 18
Slide 20: 9MFY19: Segment Mix
9MFY19: Segment Mix Segment Wise Sales 9MFY18 (Rs. 1,057 Crores)* Segment Wise Sales 9MFY19 (Rs. 1,410 Crores)* 5% 6% 26% 27% 69% 67% Passenger Vehicles 2-Wheelers Commercial Vehicles Passenger Vehicles 2-Wheelers Commercial Vehicles * Excludes Mould Sales 19
Slide 21: Q3FY19: Customer Mix
Q3FY19: Customer Mix Customer wise sales Q3FY18 (Rs. 363 Crores)* Customer wise sales Q3FY19 (Rs. 415 Crores)* 116, 32% 151, 36% 72, 20% 72, 17% 30, 7% 27, 7% 44, 11% 39, 11% 36, 10% 58, 14% 36, 9% 40, 11% 33, 9% 24, 6% Figures in Rs. Crores MSIL M&M HCIL HMSI HML TATA Others MSIL M&M HCIL HMSI HML
Slide 22: 9MFY19: Customer Mix
9MFY19: Customer Mix Customer wise sales 9MFY18 (Rs. 1,057 Crores)* Customer wise sales 9MFY19 (Rs. 1,410 Crores)* 334, 32% 478, 34% 200, 19% 288, 20% 97, 7% 74, 7% 129, 12% 144, 10% 109, 10% 122, 9% 118, 11% 93, 9% 212, 15% 69, 5% Figures in Rs. Crores MSIL M&M HCIL HMSI HML TATA Others MSIL M&M HC
Slide 23: 9MFY19: LED Lighting vs Conventional Lighting
9MFY19: LED Lighting vs Conventional Lighting Product wise Sales 9MFY18 (Rs. 1,057 Crores)* Product wise Sales 9MFY19 (Rs. 1,410 Crores)* 20% 35% 65% 80% Conventional Lighting LED Lighting Conventional Lighting LED Lighting * Excludes Mould Sales 22
Slide 24: SL Lumax Limited
SL Lumax Limited Sales Breakup SL Lumax Limited FY18 – Rs. 1,084 Crores Associate Company with 21.28% holding 31% Plant in Sriperumbudur (Chennai) In partnership with SL Corporation, Korea, a multinational automotive player with presence in Asia-Pacific, Europe & US 69% Lamps Others Products Lamps K
Slide 25: Strong Customer Base … Servicing almost 90% of OE Customers in India
Strong Customer Base … Four Wheeler Two Wheeler Commercial Vehicle Export Tractor /FES … Servicing almost 90% of OE Customers in India … 24
Slide 26: From Strategic Locations … in Key Auto Belts of India
… From Strategic Locations … Pantnagar Dharuhera Bawal Haridwar Gurugram Chakan Sanand Chinchwad SL Lumax Ltd Bengaluru Chennai R&D Centre & Design Centre Gurugram R&D Centre Pune Design … in Key Auto Belts of India Centre Taiwan Map not to scale. All data, information and maps are provided “as is”
Slide 27: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities 26
Slide 28: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities 27
Slide 29: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities 28
Slide 30: In-house R&D & Validation Facility
…In-house R&D & Validation Facility 29
Slide 31: In-house Design Studio
.. In-house Design Studio 30
Slide 32: Share Holding as of 31st December, 2018
Share Holding as of 31st December, 2018 Shareholding breakup Stanley Electric Company Ltd Over three decades of strong technical & financial collaboration with Stanley Electric Company Ltd, DK Jain Japan Others 25.00% Family 37.50% A world leader in Vehicle Lighting & Illumination products for Autom
Slide 33: Promoter Group
Promoter Group Mr. Dhanesh Kumar Jain Mr. Deepak Jain Mr. Anmol Jain Chairman Emeritus Chairman & Managing Director Jt. Managing Director ▪ He is 76 years of age & holds a MBA ▪ He is 43 years of age & is a Business Graduate ▪ He is 39 years of age & holds degree from Delhi university & has from Ill
Slide 34: Promoter Group
Promoter Group Mr. Tadayoshi Aoki Mr. Koji Swada Mr. Toru Tanabe Senior Executive Director Executive Director Non-Executive Director ▪ He is 52 years old & is a ▪ He is 55 years old & ▪ He is 58 years old & is a Mechanical Engineering from graduated from Osaka graduate from Hosei Tokoyo Denki Univer
Slide 35: Supported by Strong Independent Directors
…Supported by Strong Independent Directors Mr. A P Gandhi Mr. Rajeev Kapoor Mr. M.C. Gupta Mr. Dhiraj Dhar Gupta Mr. Ratan Kapur Ms. Ritika Modi • He is 80 years old & is a • He is 66 years old and • He is 80 years old and is • He is 68 years old and • He is 61 years old & is • She is 38 years old m
Slide 36: Professional & Experienced Team
Professional & Experienced Team Mr. Vineet Sahni Mr. Sanjay Mehta Mr. Naval Khanna Mr. Vikas Marwah Mr. Shrutikant Rustagi CEO & Senior Executive Director Group – Chief Financial Officer Corporate Head – Taxation Chief Strategy Officer Chief Financial Officer Age: 53 years Age: 51 years Age: 60 year
Slide 37: The Path Ahead
LUMAX The Path Ahead
Slide 38: Rear Lamp – Technology Evolution
Rear Lamp – Technology Evolution Split type Tail Lamp Tail Lamp with LED All LED Tail Lamp 3D LED Tail lamp Adaptive rear Lighting Signature and Tail function 2011-12 2013-mid of 2014 End of 2014 - 2015 2016 2017 onwards • Tail lamps were • New Styling • Penetration of • Almost all the new • All the
Slide 39: Head Lamp – Technology Evolution
Head Lamp – Technology Evolution Head Lamp with Bulb Projector Head Lamp All LED Head Lamp Head Lamp with bulb + Led Head Lamp with LED Projector DRL and LED DRL 2011-13 2014-15 2016-17 2017-18 • Head Lamps with Halogen Bulbs • Introduction of Projector Lamps • Almost all the models were • The futur
Slide 40: Leveraging on our Strengths for LED Market
Leveraging on our Strengths for LED Market The Market Scenario Increased styling demands Creating revenue Influencing the cost of by OEMs to individualise & opportunities for Tier I lighting cluster differentiate suppliers Partnership with Stanley Electric - Stanley is one of the Auto Lighting compa
Slide 41: Financials
LUMAX Financials
Slide 42: Revenue & Healthy Margins
Revenue & Healthy Margins Revenue EBITDA 4.57% +343 Bps 8.00% +10% 1,650 1,445 1,255 1,271 +27% 133.7 1,117 1,143 122.4 100.3 88.6 51.1 59.3 FY14 FY15 FY16 FY17* FY18* 9MFY19* FY14 FY15 FY16 FY17* FY18* 9MFY19* PAT Cash PAT 0.69% +372 Bps 4.41% 136.6 95.3 +26% 111.1 +69% 87.5 63.2 75.3 46.1 52.7 37.
Slide 43: Expansion funded through Internal Accruals
Expansion funded through Internal Accruals Gross Block Long Term Loan 973 1,005 103.0 760 812 661 713 68.0 36.0 13.0 5.0 3.7 FY14 FY15 FY16 FY17* FY18* H1FY19* FY14 FY15 FY16 FY17* FY18* H1FY19* Capex Reducing Long Term Debt / Equity 162.0 0.69 0.45 70.0 52.0 52.0 0.21 36.0 21.0 0.05 0.02 0.01 FY14
Slide 44: Healthy Return Ratios
Healthy Return Ratios ROE (%) ROCE (%) 25.9 39.0 22.0 32.0 18.3 18.0 25.6 26.0 9.2 13.2 8.6 4.4 FY14 FY15 FY16 FY17* FY18* H1FY19*^ FY14 FY15 FY16 FY17* FY18* H1FY19*^ Dividend (% of Face Value) EPS (in Rs.) 230 101.9 145 67.7 120 49.3 40.0 55 35 17.7 8.2 FY14 FY15 FY16 FY17* FY18* FY14 FY15 FY16 FY
Slide 45: Consolidated Performance
Consolidated Performance PAT* EPS (in Rs.) 66.3 101.9 60.6 95.8 53.6 44.5 57.4 47.6 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 Standalone Standalone# Consolidated Consolidated# Standalone Standalone Consolidated Consolidated Net Worth* ROE^ (%) 362.0 373.6 25.9 292.9 310.3 20.4 17.6 12.
Slide 46: YTD Highlights - Consolidated
YTD Highlights - Consolidated Revenue Normalized EBIDTA* Adj. PAT^ 8.0% 8.8% 1,445 127 61 54 1,090 87 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 # Numbers updated as per IND-AS ^excludes one time gain on sale of asset of Rs. 36.20 Crores and the Rs. Crores *excludes forex items tax paid on the same w
Slide 47: Standalone P&L Statement
Standalone P&L Statement Particulars (Rs. in Crores.) Q3 FY19 Q3 FY18 YoY 9M FY19 9M FY18 YoY FY18 Total Revenue (Net of Excise duty) 430.80 370.68 16.2% 1,444.53 1,090.47 32.5% 1,649.35 Raw Material 274.56 233.89 955.46 702.85 1,090.14 Employee Expenses 55.38 47.48 164.56 136.07 188.93 Other Expens
Slide 48: Consolidated P&L Statement
Consolidated P&L Statement Particulars (Rs. in Crores.) Q3 FY19 Q3 FY18 YoY 9M FY19 9M FY18 YoY FY18 Total Revenue (Net of Excise duty) 430.80 370.68 16.2% 1,444.53 1,090.47 32.5% 1,649.35 Raw Material 274.56 233.89 955.46 702.85 1,090.14 Employee Expenses 55.38 47.48 164.56 136.07 188.93 Other Expe
Slide 49: Standalone Balance Sheet
Standalone Balance Sheet ASSETS (Rs. in Crores.) Sept-18 Mar-18 EQUITY & LIABILITIES Sept-18 Mar-18 Non-current assets Equity Property, plant and equipment 521.68 514.02 Equity Share capital 9.35 9.35 Capital work-in-progress 46.91 33.83 Non Controlling Interest 0.00 0.00 Other intangible assets 3.9
Slide 50: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (Rs. in Crores.) Sept-18 Mar-18 EQUITY & LIABILITIES Sept-18 Mar-18 Non-current assets Equity Property, plant and equipment 521.68 514.02 Equity Share capital 9.35 9.35 Capital work-in-progress 46.91 33.83 Other intangible assets 3.97 4.35 Non Controlling Interest 0
Slide 51: Awards & Recognitions
LUMAX Awards & Recognitions
Slide 52: Awards & Recognition
Awards & Recognition Award received from Maruti Suzuki India Ltd - May 2018 For Tier 2 Upgradation For Gujarat Localization For Overall Vendor Performance 51
Slide 53: Awards & Recognition
Awards & Recognition HMSI Awards for New Product Development
Slide 54: Awards & Recognition
Awards & Recognition SML Isuzu Award for Design and Development
Slide 55: Awards & Recognition
Awards & Recognition Team Sankalp from Lumax Industries Limited, Bawal won the 'Best Overall Project' Award at the ICQCC, Singapore, 2018. It was the highest award of the competition. Team Sankalp also bagged the 'Star Award'. While both Team Sankalp and Team Jagriti from Lumax Industries Limited, D
Slide 56: Awards & Recognition
Awards & Recognition ICQC Phillipines – Gold Award- Received on 26th October 2017 by both Bawal and Haridwar plant teams 55
Slide 57: Awards & Recognition
Awards & Recognition Overseas Supplier Association-‘Special Recognition Award’ from Toyota Motor Corporation, award being given by Mr. Takeshi Uchiyamada, Chairman, Toyota Motor Corporation 56
Slide 58: TPM Award
TPM Award JIPM-TPM Excellence Award Pantnagar Plant, March 2014 JIPM-TPM Excellence Award Bawal Plant, November 2017 57
Slide 59: Future Ready: New Design Centre in Taiwan
Future Ready: New Design Centre in Taiwan Mr. C K Tao, Director, TAITRA-Taiwan Office, Mr. David Ho, Ex-President, TYC Group, Taiwan, along with Mr. D K Jain, Chairman and Mr. Vineet Sahni, CEO, Lumax Industries Limited 58
Slide 60: CSR Initiatives
CSR Initiatives Towards its endeavour to give back to society, the group has taken various initiatives towards Education of the underprivileged. Four schools in the NCR region, close to its facilities have been adopted, starting with improving its infrastructure, to facilitating the annual fee so as
Slide 61: For further information, please contact:
For further information, please contact: Company: Investor Relations Advisors: Lumax Industries Limited Strategic Growth Advisors Pvt. Limited CIN: L74899DL1981PLC012804 CIN: U74140MH2010PTC204285 Ms. Priyanka Sharma Mr. Rahul Agarwal / Mr. Shrikant Sangani priyanka.sharma@lumaxmail.com rahul.agarwa