Slide 1: Cover letter to stock exchanges
9th November 2022 The Listing Department, The Manager The Manager, The Calcutta Stock The Department of The Listing Department, Exchange Ltd. Corporate Services, National Stock Exchange of 7, Lyons Range, BSE Limited, P. J. India Limited, Exchange Kolkata – 700001 Towers, Plaza, Dalal Street, Bandra
Slide 2: Q2 FY23 Earnings Presentation
Q2 FY23 EARNINGS November 2022 PRESENTATION. NSE : LINC BSE : LINC Linc Limited Bloomberg : LINC:IN (formerly Linc Pen and Plastics Limited) 1
Slide 3: Inside This Presentation
Inside This Presentation . 1. 5. . 9. Executive Summary . Operational Highlights Why Linc? 16 03 . 11 - 12 . . . 2. . 6. 10. Management . Quarterly Commentary Profit and Loss Disclaimer 04 . 13 . 17 . . 3. . 7. . 11. Focus on Key Highlights Shareholder Thank You 05 - 06 . Value Creation . 18 . 14 .
Slide 4: Executive Summary
Executive Summary. Among Top 3 brands New Writing Instrument Global brand from Asia’s largest stationery in India for Writing brand launched in FY19 by Mitsubishi Pencil Co. Ltd, giant. • Linc Ltd. is one of Instruments. Linc in MRP ₹10 and above Japan. India’s largest writing segment. instr
Slide 5: Management Commentary
Management Commentary. “Q2 FY23 has been a landmark quarter as we achieved our highest ever revenue and profits. Operating Income stood at ₹ 12,698 lacs, a growth of 35.2% YoY and 29.7% QoQ. While Pentonic sales continued to grow, Linc revenue also posted strong growth of over 45% YoY. Further expor
Slide 6: Key Highlights
Key Highlights. Operating Income up 35.2% YoY, Gross Profit up 72.2% YoY at ₹3,875 29.7% QoQ at ₹ 12,698 lacs, lacs and Margin stood at 30.5%. Gross highest in a quarter Profit and GPM was also the highest in a quarter Operating EBITDA up sharply by 104.6% YoY at ₹ 1,557 lacs 'Pentonic' Sales contin
Slide 7: Key Highlights (Cont.)
Key Highlights (Cont.) . Record Performance; surpassing pre-covid peak 1,394 22,492 995 20,228 23.4% 28.3% 6.1% 4.9% 25.0% 22.9% 14,908 236 1.6% ₹ LACS 9,197 ₹ LACS 5,053 6,362 2,102 3,489 H1'FY20 H1'FY21 H1'FY22 H1'FY23 (5.3)% (488) H1'FY20 H1'FY21 H1'FY22 H1'FY23 Operating Income Gross Profit GP M
Slide 8: Quarterly Highlights
Quarterly Highlights. ₹ Lacs Operating Gross Operating PBT PAT Cash Profit1 Income Profit EBITDA 12,698 3,875 1,557 1,267 956 1,320 Growth (YOY) 35.2% 72.2% 104.6% 164.0% 167.0% 97.6% Growth (QOQ) 29.7% 55.8% 94.7% 113.5% 118.1% 72.4% Margin2(%) 30.5% 12.3% 9.9% 7.5% Margin –YoY 657 bps 416 bps 483
Slide 9: Quarterly Highlights (Cont.)
Quarterly Highlights (Cont.). ₹ Lacs Particulars 30-Sep-22 31-Mar-22 30-Sep-21 ROE(%)2 ROCE(%)2 18.8% 24.1% Net Worth 15,412 14,285 13,703 Short Term Borrowing - 299 311 3.5% 5.9% 7.7% 4.9% Long Term Borrowing - - - Gross Debt - 299 311 Q2'22 FY 22 Q2'23 Q2'22 FY'22 Q2'23 Cash & Cash equivalent 822
Slide 10: Quarterly Highlights (Cont..)
Quarterly Highlights (Cont..). ₹ Lacs Writing Instruments Other Products Writing Instruments Other Products Revenue Own Brands Licensed Brands Own Brands Licensed Brands Pentonic Linc & Others (Uni-Ball) Pentonic Linc & Others (Deli) Q2 FY23 3,488 6,221 1,537 24 119 649 Sales Contribution (%)
Slide 11: Quarterly Highlights (Cont..)
Quarterly Highlights (Cont..). ₹ Lacs Writing Instruments Trade Channel Other Products Revenue General Trade Corporate Modern Trade E-Commerce Exports Q2 FY23 8,247 382 572 183 2,653 Sales Contribution (%) 68.5% 3.2% 4.8% 1.5% 22.0% Q1 FY23 6,646 358 624 191 1,489 Sales Contribution (%) 71.4% 3.8
Slide 12: Operational Highlights
Operational Highlights. Increasing touch points Focus on brand building 2,37,620 2,30,574 2,18,471 1,67,584 3.1% 1,51,328 1,39,500 1,48,898 1,23,472 39,996 1,35,184 1,45,150 35,049 36,694 35,496 1,16,963 33,189 ₹ LACS 65,000 78,710 25,666 62,405 66,736 22,492 46,000 50,000 45,765 56,553 1.7% 1.5% 1.
Slide 13: Operational Highlights (Cont..)
Operational Highlights (Cont..). Growth in average realization of Pens Focus on higher margin products 30.5% 5.53 5.62 5.57 5.62 29.3% 25.5% 27.7% 4.90 20.0% 17.2% 4.52 25.4% 4.32 24.7% 3.96 7.0% 23.8% ₹ 3.65 0.0% 21.8% FY18 FY20 FY22 Q1'23 Q2'23 FY 18 FY 19 FY 20 FY 21 FY 22 Company GPM Average Pen
Slide 14: Quarterly Profit & Loss
Quarterly Profit & Loss. ₹ Lacs Particulars Q2 FY 23 Q2 FY 22 YoY Change Q1 FY 23 QoQ Change H1 FY23 H1 FY22 YOY Change FY22 Operating Income 12,698 9,395 35.2% 9,794 29.7% 22,492 14,908 50.9% 35,496 Gross Profit 3,875 2,250 72.2% 2,487 55.8% 6,362 3,489 82.3% 8,441 Gross Profit (%) 30.5% 23
Slide 15: Focus on Shareholder Value Creation
Focus on Shareholder Value Creation. FCF VS DIVIDEND PAYOUT 5000 60.0% 52% 50.0% 4,723 4000 • Sharp increase in Free Cash Flow in H1 FY23 34% 40.0% 3,835 3000 ₹ LACS 3,317 • Consistent Dividend Pay-out track record of greater than 30% 33% 30.0% 2,649 2000 12% (Other than Covid years due to cash cons
Slide 16: Shareholding Pattern
Shareholding Pattern. 27.4% Promoters Mitshubishi Pencil Co Ltd 0.3% IEPF 58.70% 0.2% NRI, FII etc. 13.4% Other Public As on 30th Sep’22 15
Slide 17: Why Linc?
Why Linc?. Education sector Strong Balance Sheet with experiencing strong tail zero debt and free cash in winds in India; hence hand; strong top & bottom demand for company’s line growth products will continue to grow Presence over all categories Strong in-house – Roller Pen, Gel Pen & Ball manufact
Slide 18: Disclaimer
Disclaimer. The information contained in this presentation is provided by Linc Limited (the “Company”). Although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change without
Slide 19: Thank You
Thank You. For further details please contact Director Finance & CFO Investor Relations Advisor N.K.Dujari Email: investors@linclimited.com Phone No.: +91 9830042353 Sanjeev Sancheti Landline: +91 33 68262100 Email: ss@uirtus.in Phone No.: +91 9836244222 18