LUX Industries Ltd. Conducted their conference call today at 2:30 pm.
"Aggressive reinvestment in the business with focus on premiumisation. "
Here are the key takeaways π...
"Aggressive reinvestment in the business with focus on premiumisation. "
Here are the key takeaways π...
Business report
- As India's lead innerwear Company, has shown robust growth of 17% YoY.
- In terms of Geographic breakup, company has 93% in domestic and rest in Exports business.
- At present the company has presence in 46+ countries and have target to reach 60 by 2025.
- As India's lead innerwear Company, has shown robust growth of 17% YoY.
- In terms of Geographic breakup, company has 93% in domestic and rest in Exports business.
- At present the company has presence in 46+ countries and have target to reach 60 by 2025.
- The target is to grow export revenue by 60% plus in next 5 years.
- There has been a shift in business from pure innerwear to an outerwear player.
- Their innerwear market share is expected to reach 500cr By 2025.
- There has been a shift in business from pure innerwear to an outerwear player.
- Their innerwear market share is expected to reach 500cr By 2025.
- With Strong digital platform at their hands they then to achieve 100 cr plus online sales within next 3 years.
- Demand and consumption has been the main reason for growth, upcoming period growth may get hampered due to covid but they have taken all measures they can.
- Demand and consumption has been the main reason for growth, upcoming period growth may get hampered due to covid but they have taken all measures they can.
- South Indian market is still the lowest of all and Company will take all necessary steps to grow from 3% to double digits.
- Company has taken decision to postpone dividend and conserve cash and will benefit shareholders soon.
- Company has taken decision to postpone dividend and conserve cash and will benefit shareholders soon.
- As product mix is changing Asp are changing and with input cost increase , output will also increase and in future Company will move to outerwear business Which has high asp.
- They only make new destributors when then have good opportunity and is correct as per company.
- They only make new destributors when then have good opportunity and is correct as per company.
- They are trying to gain both organic and inorganic growth from all prespective.
- The Company is looking from last Fy that there is move from unorganised to organised segment and new product segments might have their names changes then regular names.
- The Company is looking from last Fy that there is move from unorganised to organised segment and new product segments might have their names changes then regular names.
- They have reached their Wc reduction for the year , they will try to reduce it more if country remains normal.
- Till now the company has transferred all inflation cost to its customers.
- In product break up , rural market has been growing great for economy products.
- Till now the company has transferred all inflation cost to its customers.
- In product break up , rural market has been growing great for economy products.
- Rural contributions to total business is about 70% and rest is for urban.
- New Hiring of experts are also done for taking best advantage of their network for future growth.
- Company was able to recover 90% of Lyra sales and other areas for women , they will do best to grow.
- New Hiring of experts are also done for taking best advantage of their network for future growth.
- Company was able to recover 90% of Lyra sales and other areas for women , they will do best to grow.
Financials
- Strong credit policy has strengthened the working capital of Company.
- Volume increase has lead to growth in market share as well.
- Strong credit policy has strengthened the working capital of Company.
- Volume increase has lead to growth in market share as well.
- They were able to generate majority of its revenue from its Semi-premium category of about 1100 cr followed by economic category 616 cr and premium 230 cr.
- With present times company is cash positive and has created strong liquidity buffer.
- With present times company is cash positive and has created strong liquidity buffer.
- On YoY scale, There has been boost in EBITDA margins as well moving to 19.99% with an increase of 22%.
- Similar jump of about 29% is scene on pat margins as well.
- On QoQ basis, These numbers have nearly doubled up and has resulted in Net cash flow jump of 15 times.
- Similar jump of about 29% is scene on pat margins as well.
- On QoQ basis, These numbers have nearly doubled up and has resulted in Net cash flow jump of 15 times.
- Around 100cr was spend on market and advertisement activitises.
- Their D to E ratio has declined from 0.32 to 0.12 on YoY scale.
- Company is also planning to reduce its existing expense as a percentage of total revenue. Like brand expenditure.
- Their D to E ratio has declined from 0.32 to 0.12 on YoY scale.
- Company is also planning to reduce its existing expense as a percentage of total revenue. Like brand expenditure.
Investment activities
- Brand Lyra and Genx were merged with the company has lead them to grow business at a faster scale.
- This will act as a leverage for innerwear business as well.
- Their expansion plans can generate about 400cr plus of additional revenues.
- Brand Lyra and Genx were merged with the company has lead them to grow business at a faster scale.
- This will act as a leverage for innerwear business as well.
- Their expansion plans can generate about 400cr plus of additional revenues.
- On Technology, focus on automation is done for enhancing companies operational control.
- Company has completed its upgradation and replacement of old equipments.
- About 25 cr was made on machines from Italy, Germany, and Singapore.
- Company has completed its upgradation and replacement of old equipments.
- About 25 cr was made on machines from Italy, Germany, and Singapore.
- Till now about 650 cr investments are been made in branding.
- Company had aldo sanctioned around 110 cr of Capex for expansion needs.
- With present CFO about 65 cr was used in Capex.
- Company had aldo sanctioned around 110 cr of Capex for expansion needs.
- With present CFO about 65 cr was used in Capex.
- Company has also done changes in the brand mixes after mix to get best out of the merger.
- Many new opportunities will come after this merger, and proper work will be done on thier team for its promotion.
- Many new opportunities will come after this merger, and proper work will be done on thier team for its promotion.
- Currently the digital sales are coming from 3rd party e commerce platform and they might bring change in them soon for better future look.
- Above mentioned 110cr Capex will be for Economy and mid premium segment played for 18 to 20 months.
- Will start using it when ready.
- Above mentioned 110cr Capex will be for Economy and mid premium segment played for 18 to 20 months.
- Will start using it when ready.
ECG
- Company is being more transparent then before related to its ECG related issues.
- They have also collaborated with church gate partners for work.
- About 5cr was spend on its annual CSR activities this year.
- Company is being more transparent then before related to its ECG related issues.
- They have also collaborated with church gate partners for work.
- About 5cr was spend on its annual CSR activities this year.
For more discussion on Equity research and OI analysis
Subscribe to our YouTube channel π
Link π: youtube.com/c/TheTycoonMinβ¦
Subscribe to our YouTube channel π
Link π: youtube.com/c/TheTycoonMinβ¦
β’ β’ β’
Missing some Tweet in this thread? You can try to
force a refresh
γ
