Lux Industries Ltd. · NSE:LUXIND
Lux Industries — Q4 FY18 Earnings Presentation
37 slides from Lux Industries's earnings presentation, May 18, 2018
Slide 1: Investor Presentation cover letter to exchanges
May 18, 2018. Lux@> To, To, The Secretary, The Secretary, National Stock Exchange of India Ltd., BSE Limited, Exchange Plaza, C-1, Block G, P.J. Towers, Bandra Kurla Complex, Bandera (BE), Dalal Street, Mumbai — 400 051 Mumbai- 400 001 Symbol: LUXIND Scrip Code: 539542 Dear Sir, Sub: Investor Presen
Slide 2: Lux Industries May 2018
DEPENDABLE PROFITABLE PASSION ENERGETIC DYNAMIC TRUSTED CONTEMPORARY DURABLE YOUTHFUL VALUE BRAND FASHION FOR MONEY QUALITY COMFORTABLE ASPIRATIONAL EFFICIENCY FAMILIAR SUSTAINABILITY May 2018
Slide 3: Safe Harbor
Safe Harbor 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 securi
Slide 4: Pioneering Commitment
Pioneering Commitment 1st Ranked ~8% of innerwear Annual revenue 2,000 invested in company in Volume Terms Brand pieces sold every minute 5,000+ Promotion SKU’s 14-15% More than Manufacturing Capacity of 1st Ranked Market share in 100 products innerwear Organized 1,825 lac Brand in Bengal Men’s acro
Slide 5: Market Opportunity
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Market Opportunity TOUCH VENUS GENX
Slide 6: Exponential Opportunities
Exponential Opportunities…. ✓ Addressed Men and Women wear categories Presence across Categories Rs. In Cr ✓ At the cusp of rapid growth; per capita inner wear expenditure expected to double to Rs. 300 2020E 28,000 16,500 2,300 ✓ Innerwear market of Rs. 24,000 Cr (2015) projected to grow to Rs. 47,0
Slide 7: Poised to Grow
….poised to Grow Technology Rising exports 04 05 03 06 Demographic dividend Innovation 07 Middle class boom 02 08 Consumer purchasing power Brand consciousness 09 Growing population 01 10 Online retail Goods & Service Tax (GST) 6
Slide 8: Strong Foundation
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Strong Foundation TOUCH VENUS GENX
Slide 9: We are gaining Market Share
Lux} We are gaining Market Share 99
Slide 10: We have created Brand Equity
We have created Brand Equity 1993 1995 1997 1998 2000 2001 Vests & Briefs Vests & Briefs Panties, Panties, Designer vests Innerwear camisoles & camisoles & and casual leggings leggings inners 2003 2005 2007 2009 2010 2016 Premium Trunks Thermals and Quilted Premium Socks Premium Wear Vests, Briefs &
Slide 11: Our Products are Bare Necessities
Our Products are Bare Necessities Diverse Product Premiumization Milestone Achieved ✓ Lux Cozi helped sectorial Portfolio ✓ ONN Brand growing revenues at 30% transformation from un- organized to brand driven ✓ Mass, Semi Premium & ✓ Increase in Premium Brand Premium contribution to revenue & Expandi
Slide 12: Our Products satisfy Customer needs
Our Products satisfy Customer needs Presence across Categories Presence across various Price Points Revenue : 20% EBITDA Margin : 15-18% Premium Revenue : 45% EBITDA Margin : 13-15% Medium Revenue : 35% EBITDA Margin : 8-10% … From Semi Premium to Premium Mass … From Men’s innerwear to Men’s and Wom
Slide 13: We manufacture to maintain High Quality Standards
We manufacture to maintain High Quality Standards Packaging Yarn One of Lowest Manufacturing Cost ❑ 100% of our products in-house with zero Outsourcing ❑ Invested extensively in manufacturing integration and scale with the objective to reduce costs Largest Employer in Sector Knitting ❑ Our pool of 1
Slide 14: We have advanced Manufacturing Facilities
We have advanced Manufacturing Facilities AGARPARA TIRUPUR B. T. ROAD DHULAGARH LUDHIANA DANKUNI State-of-the-art 350 Fully Ahead of the Equipment in circular Automated trends due to the Capacity to manufacture 18.25 Cr Capture your creating Top- Knitting in-house audience’s expertise garment pieces
Slide 15: We deliver Quality to generate Loyalty
We deliver Quality to generate Loyalty 01 Manufacture 100% of our products in- house with zero outsourcing State-of-the-art Machines from Company invested in cutting machine from 02 Morgan Technica SPA, Italy, and knitting machine from Mayer & Cie, Germany, and United Texmac Pte Ltd Singapore Up-gra
Slide 16: We have right distribution setup to Support Growth
We have right distribution setup to Support Growth Merchandise Strength ❑ Core strength lies in the goodwill that we enjoy among distributors, dealers and retailers rather than machines and products Capitalizing Opportunity ❑ First Indian innerwear company to organize distributor and owner conferenc
Slide 17: We have Celebrity Endorsements
We have Celebrity Endorsements Lux’s profit from every rupee invested in brand spending increased from 5.74% in FY13 to 9.55% in FY18 16
Slide 18: We are led by Experienced Leadership
We are led by Experienced Leadership Mr. Ashok Kumar Todi Mr. Pradip Kumar Todi ❑ Presently looking after the ❑ His forte lies in Marketing Product Development and of the products and Production formulating various policies for Growth & ❑ His forte is in developing new Expansion of the business patt
Slide 19: We are supported by Strong Management Team
We are supported by Strong Management Team ❑ Mr. Saket Todi, son of Shri Ashok Kumar Todi, aged 27 years Mr. Saket Todi ❑ Has done his post graduation in Brand Management and has eminent knowledge in marketing Sr. Vice President (Marketing) ❑ His contribution towards strengthening the premiumisation
Slide 20: We are supported by Strong Management Team
We are supported by Strong Management Team ❑ He heads the Sales function and plays an important role in ❑ He has done post graduation in MBA & MCA and has more than Mr. Sanjay Mittal Mr. Bibekananda formulating the Sales Strategy 22 years of experience in IT function of manufacturing sector Maity Vi
Slide 21: We are honoured by Awards & Recognitions
We are honoured by Awards & Recognitions 2012-13 2013 2014 Asia’s Most Promising Brands The Master Brand The Master Brand 2014-15 2015 2016 The Admired Brand of India The World’s Greatest Brands Asia’s Greatest Brands 20
Slide 22: Market Penetration Strategy
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO Market Penetration COZI CLASSIC ONN TOUCH Strategy VENUS GENX
Slide 23: Market Penetration
Multi-Product & Multi-Brand Approach Quality at Low Costs Premiumization ❑ 100 products under 12 brands for a growing family’s needs ❑ Only 20% of the innerwear market accounted for by the premium Product & Quality and Semi-premium Segments, offering significant headroom for ❑ 5000 SKUs across all m
Slide 24: Technologically Advanced Expansion
Technologically Advanced Expansion Integrated Unit across knitting, processing and cutting functions which will strengthening efficiency, productivity & profitability New state-of-the-art 12 lakh sq.ft (approx) manufacturing facility in Dankuni, West Bengal Rs.83 Cr investment across 11.48 acres on
Slide 25: The New Age Distribution: E-Commerce
The New Age Distribution: E - Commerce ❑ Company is creating an online presence through e-commerce websites, enhancing access and image Amazon Snap Deal Myntra Other Presence: ❑ Keep It On ❑ Jabong Paytm FlipKart Shopclues ❑ Lime Road ❑ Tata Cliq 24
Slide 26: Focus on Demographics with Huge Potential
Focus on Demographics with Huge Potential Europe North America Middle East South- India East Asia Africa ❑ For FY17-18 export contribution to revenue was Australia 9.5% Increase in the number of countries exported to from 22 to 47 over the past 5 years Disclaimer : Map not to scale. All data, inform
Slide 27: Our Goal - Sustained Brand Investments
Our Goal - Sustained Brand Investments…. 12 Ye Andar Ki Baat Hai the first television Marketing Spend (Rs. In Cr) 1992 advertisement featuring Sunny Deol was Brands launched. 109 100+ Products Face of Lux Sunny Deol was signed as Lux Cozi’s 76 2001 brand ambassador 56 56 49 41 New look - Indian film
Slide 28: Mr. Amitabh Bachchan signed up
….Mr. Amitabh Bachchan signed up ❑ Venus is one of the largest innerwear brands in India ❑ Launched Mr. Bachchan as its ambassador through an extensive campaign from January 2018 across a mix of media like Television, Online, Print and Out-of- Home media Brand Ambassador for LUX Venus Mr. Amitabh Ba
Slide 29: Continuous Strategic Innovation
Continuous Strategic Innovation Artimas Fashions CSE Consulting Synergies Private Limited LLP (Wholly Owned (License Owner of ✓ Aim at providing superior product quality coupled Subsidiary of Lux One8) – Brand of Virat with comfortable feel that will grab instant attention Industries) Kohli of the y
Slide 30: Financial Performance
KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN Financial Performance TOUCH VENUS GENX
Slide 31: Q4 FY18 Financial Highlights
Q4 FY18 Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) +27% +52% +67% 356 59 32 280 39 19 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 EBITDA Margins (%) PAT Margins (%) + 280 bps + 210 bps 16.7% 8.9% 13.9% 6.8% Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 * - Ind-AS
Slide 32: FY18 Financial Highlights
FY18 Financial Highlights* Revenue (Rs. In Cr) EBITDA (Rs. In Cr) Profit after Tax (Rs. In Cr) +19% +30% +33% 1,139 158 79 960 121 60 FY17 FY18 FY17 FY18 FY17 FY18 EBITDA Margins (%) PAT Margins (%) + 120 bps + 80 bps 13.8% 7.0% 12.6% 6.2% FY17 FY18 FY17 FY18 * - Ind-AS Financials 31
Slide 33: Quarterly Performance
Quarterly Performance* Particulars (Rs. In Cr) Q4 FY18 Q4 FY17 Y-o-Y FY18 FY17 Y-o-Y Revenue from Operations 352.3 274.5 1127.6 945.7 Other Operating Income 2.3 4.0 10.2 12.2 Other Income 1.5 1.3 1.7 1.6 Total Income from Operations 356.1 279.9 27% 1139.5 959.6 19% Raw Material Cost 157.7 111.3 485.
Slide 34: Balance Sheet
Balance Sheet* Particulars (Rs. Crs.) Mar-18 Mar-17 Particulars (in Rs. Crs.) Mar-18 Mar-17 Equity 320.6 245.9 Non-current assets 138.7 128.0 Equity Share capital 5.3 5.3 Property, Plant and Equipment 128.1 112.9 Other Equity 315.3 240.6 Capital work-in-progress 5.3 11.4 Intangible assets 1.1 1.1 No
Slide 35: Operating Performance
Operating Performance Revenue (Rs. In Cr) PAT (Rs. In Cr) EBITDA & PAT Margins (%) EBITDA% PAT% +10% 1,139 79 +31% 13.8% 941 960 60 871 909 51 45 12.6% 713 31 20 10.0% FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 8.9% EBITDA (Rs. In Cr) Cash PAT (Rs. In Cr) 8.0% 7.0% 6.3% 6.2% 158 89
Slide 36: Lean Balance Sheet & Sustained Returns
Lean Balance Sheet & Sustained Returns Return on Equity (RoE) Return on Capital Employed (RoCE) Net Debt to Equity (x) 24.3% 24.7% 23.0% 1.1 21.9% 1.0 FY17* FY18 FY17* FY18 FY17^ FY18 ^ - Preference Share Capital of Rs. 56 crores considered * - Excl. Preference Share Capital of Rs. 56 crores as Debt
Slide 37: Company and Investor Relations Advisors contacts
Company : Investor Relations Advisors : KARISHMA COTT’s MOZZE INFERNO BIG SHOT WOOL GLO COZI CLASSIC ONN CIN: L17309WB1995PLC073053 CIN: U74140MH2010PTC204285 TOUCH Mr. Ajay Patodia [email protected] Mr. Jigar Kavaiya +91 9920602034 [email protected] VENUS GENX Mr. Deven Dhruva +91