Lux Industries conducted the conference call for Q3 FY22.
"Mr Todi will demonstrate to SEBI for no violation & will not attend any Board Meeting until matter resolved.
There is no criminal liability announced till now"
Here are the conference call highlights
🧵👇
"Mr Todi will demonstrate to SEBI for no violation & will not attend any Board Meeting until matter resolved.
There is no criminal liability announced till now"
Here are the conference call highlights
🧵👇
Business Updates:
• Co. has outperformed indusry with increasing market share.
• Premium & Economy category has best quarter: Growing 16% & 64% respectively on YoY basis.
• Mid-Premium segment grew 9%, however thermal wear witness slight weakness, due to change in season.
• Co. has outperformed indusry with increasing market share.
• Premium & Economy category has best quarter: Growing 16% & 64% respectively on YoY basis.
• Mid-Premium segment grew 9%, however thermal wear witness slight weakness, due to change in season.
Industry Updates:
• Rising consumption was across all region.
• Economic activity expected to recover to normal resulting in increasing in business.
• Women's market share of Lux is increasing due to better quality than competitors.
• Mgmt expect to beat the industry by 2-3%
• Rising consumption was across all region.
• Economic activity expected to recover to normal resulting in increasing in business.
• Women's market share of Lux is increasing due to better quality than competitors.
• Mgmt expect to beat the industry by 2-3%
Revenue Share
- Premium Wear: 13% (11% last year)
- Mid Premium: 55%
- Economy: 32%
Volume:
- Total Volume growth:6%
- ASP Growth 16%.
• Winter wear sales didn't work that well for the industry.
• In Q4 Economy will have good volume growth (esp in Feb & march).
- Premium Wear: 13% (11% last year)
- Mid Premium: 55%
- Economy: 32%
Volume:
- Total Volume growth:6%
- ASP Growth 16%.
• Winter wear sales didn't work that well for the industry.
• In Q4 Economy will have good volume growth (esp in Feb & march).
Lyra:
• Lyra: 13% of net sales.
With increase in product basket target remains to make it 500cr brand. 80% bottom wear & 10% each for inner wear and Lounge wear.
• Inner ware in Lyra brand is expected to show more contribution.
• Lyra: 13% of net sales.
With increase in product basket target remains to make it 500cr brand. 80% bottom wear & 10% each for inner wear and Lounge wear.
• Inner ware in Lyra brand is expected to show more contribution.
Segmental Growth:
• Premium wear market is consolidating with few player.
• Mid Premium wear has very few player, where mgmt expect Lyra would see good recognition due to new marketing spend.
• Mgmt expect premium category to growth with expectation of increase in 5-6%.
• Premium wear market is consolidating with few player.
• Mid Premium wear has very few player, where mgmt expect Lyra would see good recognition due to new marketing spend.
• Mgmt expect premium category to growth with expectation of increase in 5-6%.
Geographic Revenue Share:
• In Domestic Market volume growth in ON (Premium segment) was 9-10%+, however the export market has de-growth.
• Export market remain very tight in terms of competition where it is difficult for co. to pass on the prices to customer.
• In Domestic Market volume growth in ON (Premium segment) was 9-10%+, however the export market has de-growth.
• Export market remain very tight in terms of competition where it is difficult for co. to pass on the prices to customer.
Margin:
• Margins remain best in the industry and mgmt expect it to remain same.
• Gross Margins improved due to product mix and gain from old raw material at lower cost.
• For new raw material price will passed onto customer.
• Margins remain best in the industry and mgmt expect it to remain same.
• Gross Margins improved due to product mix and gain from old raw material at lower cost.
• For new raw material price will passed onto customer.
Region Wise Revenue Share:
- Northern: 29%
- Eastern: 28%
- Western: 23%
- Central: 16%
- Southern: 2%
In South India market, co. will start with entire product basket launching.
• EBO is working well, but no clear picture as of now.
- Northern: 29%
- Eastern: 28%
- Western: 23%
- Central: 16%
- Southern: 2%
In South India market, co. will start with entire product basket launching.
• EBO is working well, but no clear picture as of now.
Marketing:
• This was due to marketing & branding spend, resulting in increasing customer.
• 749 cr spent over last 5 year (8% of revenue) from which 15.7Rs was earned on 1 Rs spend.
• 108 cr was spend in FY 22 (6.4% of Net Sales).
• Marketing spend will now be subsidized
• This was due to marketing & branding spend, resulting in increasing customer.
• 749 cr spent over last 5 year (8% of revenue) from which 15.7Rs was earned on 1 Rs spend.
• 108 cr was spend in FY 22 (6.4% of Net Sales).
• Marketing spend will now be subsidized
Channel Partner:
• Distribution Channel: 1170+
• Dealer Attrition <1%
• Revenue per Distributor has increased.
• Depots & Warehouse: 12 & 19 respectively.
• Shipping 4000+ online orders per day & aim to generate 100cr in online revenue over next 3 year.
• Distribution Channel: 1170+
• Dealer Attrition <1%
• Revenue per Distributor has increased.
• Depots & Warehouse: 12 & 19 respectively.
• Shipping 4000+ online orders per day & aim to generate 100cr in online revenue over next 3 year.
Other:
• Working Capital Cycle: 168 days Higher inventory in RM & finished product.
• Mgmt expect Working Capital to decrease over coming period.
• Cash at hand: 164cr.
• Working Capital Cycle: 168 days Higher inventory in RM & finished product.
• Mgmt expect Working Capital to decrease over coming period.
• Cash at hand: 164cr.
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