Linc Limited · NSE:LINC
Linc — Q1 FY23 Earnings Presentation
18 slides from Linc's earnings presentation, Aug 11, 2022
Slide 1: Cover letter to stock exchanges: Earning Presentation
11" August, 2022 The Listing Department, The Calcutta Stock Exchange Ltd. 7, Lyons Range, Kolkata - 700001 The Manager The Department of Corporate Services, BSE Limited, P. J. Towers, Dalal Street, Mumbai - 400001 The Manager, The Listing Department, National Stock Exchange of India Limited, Exchang
Slide 2: Linc Limited (formerly Linc Pen and Plastics Limited)
NSE : LINC BSE : LINC Linc Limited Bloomberg : LINC:IN (formerly Linc Pen and Plastics Limited) 1
Slide 3: Executive Summary
1. Executive . 5. 9. Operational Summary . Highlights Why Linc? 15 03 . 10 - 11 . . . . . 2. Management Quarterly Commentary 04 . . 6. Profit and Loss 12 . . 10. Disclaimer 16 . Focus on . 3. Key Highlights 05 . . 7. Shareholder Value Creation 13 . . 11. Thank You 17 . . 4. Quarterly Highlights 06 -
Slide 4: Company brands and background
➢ 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. instrument companies wit
Slide 5: Management Commentary
“With Covid induced restrictions behind us, our revenue has been displaying strong growth. Operating Income stood at ₹ 9,794 lacs, a growth of 77.7% over the previous year. However, first quarter being traditionally a weaker quarter for the industry, revenue fell by 11.4% QoQ. With Pentonic sales go
Slide 6: Key Highlights
Operating Income up 77.7% YoY, Gross Profit up 100.7% YoY at down 11.4% QoQ at ₹ 9,794 lacs. ₹2,487 lacs and Margin stood at 25.4% Operating EBITDA up 486.6% 'Pentonic' Sales continued to YoY at ₹ 799 lacs and Margin grow and was over 29% of stood at 8.2%. Operating total revenue for Q1 FY 23 and EB
Slide 7: Quarterly Highlights
₹ Lacs Growth (YOY) 77.7% 100.7% 486.6% NA3 NA3 311.7% Growth (QOQ) (11.4%) (1.9%) 36.8% 49.0% 46.5% 22.3% Margin2(%) 25.4% 8.2% 6.1% 4.5% Margin –YoY 292 bps 569 bps 899 bps 669 bps Expansion/(Contraction) EPS/CEPS 2.95 5.15 Note: 1. Cash Profit = PAT add Depreciation 2. Margins calculated on Opera
Slide 8: Balance sheet, ROE, ROCE and Net Debt
₹ Lacs Particulars 30-Jun-22 31-Mar-22 30-Jun-21 ROE(%)2 ROCE(%)2 12.1% 15.9% Net Worth 14,724 14,285 13,306 5.9% 7.7% Short Term Borrowing - 299 1,818 Long Term Borrowing - - - (3.7)% (3.5)% Gross Debt - 299 1,818 Q1'22 FY 22 Q1'23 Q1'22 FY'22 Q1'23 Cash & Cash equivalent 486 9 26 Net Debt/Equity
Slide 9: Revenue by Writing Instruments and Other Products
₹ 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) Q1 FY23 2,855 4,345 1,465 16 128 498 Sales Contribution (%) 30.7% 46.7% 15.7% 0.2% 1.4% 5.
Slide 10: Revenue by trade channel
₹ Lacs Writing Instruments Trade Channel Other Products Revenue General Trade Modern Trade E-Commerce Corporate Exports Q1 FY23 6,646 624 191 358 1,489 Sales Contribution (%) 71.4% 6.7% 2.1% 3.8% 16.0% Q4 FY22 6,536 443 144 299 2,909 Sales Contribution (%) 63.3% 4.3% 1.4% 2.9% 28.2% Q1 FY22 2,
Slide 11: Increasing touch points and focus on brand building
Increasing touch points Focus on brand building 2,30,574 2,18,471 1,67,584 3.1% 1,48,898 1,51,328 1,23,472 39,996 1,35,184 1,45,150 35,049 36,694 35,496 1,16,963 33,189 ₹ LACS 78,710 25,666 46,000 50,000 65,000 45,765 56,553 62,405 66,736 1.7% 1.3% 1.5% 0.5% 1.6% 454 177 539 1,242 414 602 FY 18 FY 1
Slide 12: Growth in average realization and focus on higher margin products
Growth in average realization of Pens Focus on higher margin products 5.53 5.62 5.57 5.62 29.3% 25.5% 25.4% 4.90 24.7% 20.0% 4.52 17.2% 23.8% 4.32 3.96 ₹ 3.65 7.0% 21.8% 0.0% FY 18 FY 19 FY 20 FY 21 FY 22 FY18 FY19 FY20 FY21 FY22 Q1'23 FY18 FY20 FY22 Q1'23 Average Pentonic Pentonic Share in Revenue
Slide 13: Profit and Loss
₹ Lacs Particulars Q1 FY 23 Q1 FY 22 YoY Change Q4 FY 22 QoQ Change FY22 Operating Income 9,794 5,513 77.7% 11,055 (11.4%) 35,496 Gross Profit 2,487 1,239 100.7% 2,536 (1.9%) 8,441 Gross Profit (%) 25.4% 22.5% 13.0% 22.9% 10.7% 23.8% Operating EBITDA 799 136 486.6% 584 36.8% 2,153 Operating
Slide 14: Shareholder Value Creation: FCF vs dividend payout
FCF VS DIVIDEND PAYOUT 5000 60.0% 52% 4,723 4000 50.0% • Steady increase in Free Cash Flow 34% 3,835 40.0% ₹ LACS 3000 3,317 • Consistent Dividend Pay-out track record of greater than 30% 33% 30.0% 2000 12% (Other than Covid years due to cash conservation) 20.0% 2,044 0% 534 223 1,317 1000 268 267 1
Slide 15: Shareholding Pattern
27.4% Promoters Mitshubishi Pencil Co Ltd 0.3% IEPF 58.70% 0.2% NRI, FII etc. 13.5% Other Public As on 30th Jun’22 14
Slide 16: Why Linc?
Education sector Strong Balance Sheet with experiencing strong tail zero debt winds in India; hence demand for company’s products will continue to grow Presence over all categories Strong in-house – Roller Pen, Gel Pen & Ball manufacturing facilities with Pen - in affordable & mid judicious mix of o
Slide 17: 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 notice, its
Slide 18: Thank You / contact details
For further details please contact Director Finance & CFO Investor Relations Advisor N.K.Dujari Email: investors@lincpen.com Phone No.: +91 9830042353 Sanjeev Sancheti Landline: +91 33 68262100 Email: ss@uirtus.in Phone No.: +91 9836244222 17