LINC LIMITED — Interim / Quarterly Report 2022

Aug 13, 2021

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13[th] August, 2021

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, Exchange Plaza, Bandra Kurla Complex, Bandra (East),Mumbai - 400051

Dear Sir,

Sub: Quarterly Update — Q1 of FY 2021-22

Please find enclosed herewith the quarterly update for Q1 of FY 2021-22.

Thanking You,

Yours faithfully,

For LINC PEN & PLASTICS LTD.

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N. K. Dujari Chief Financial Officer & Company Secretary

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Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

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An introduction to our company

The Company is among the three largest writing instrument manufacturers in India

The Company enjoys a sales presence in more than 50 countries

The Company’s brand is recalled for ‘pioneering’ and ‘consistently high quality’

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

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Big numbers of our performance in Q1, FY 2021-22

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

5,513 3.2 Revenue from EBITDA operations margin (%) (in Rs. lakh)

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Performance trend

Revenues

EBITDA margin

(in Rs. lakh)

(%)

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Q1 Q2 Q3 Q4 Q1 FY21 FY21 FY21 FY21 FY22

Q1 Q2 Q3 Q4 Q1 FY21 FY21 FY21 FY21 FY22

PAT

(in Rs. lakh)

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Q1 Q2 Q3 Q4 Q1 FY21 FY21 FY21 FY21 FY22

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

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Performance review of Q1, FY 2021-22

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

The Company reported a lower revenue over the immediate previous quarter by 41%

The Company achieved 201% of the revenues reported in Q1, FY 2020-21

Considering the sustained closure of educational institutions, the performance recorded by Linc can be considered satisfactory

The Company reported a cash profit of Rs. 1.47 crore during the quarter

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How we strengthened our business in Q1, FY 2021-22

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

The Company strengthened its retailer management through restructuring and digitalisation

The finance cost declined from Rs. 96 lakh in Q1, FY 2020-21 to Rs. 30 lakh during the quarter under review

Pentonic pens accounted for 37% of the total revenue and 68% of the products priced over Rs. 10 of the general trade business

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The message of Q1, FY 2021-22

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

The Company’s The Company’s revenue stood at revenue stood 201% of Q1, FY at 55% of Q1, FY 2020-21 during 2019-20 during the quarter the quarter under review under review

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Highlights of our domestic performance in Q1, FY 2021-22

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

• Revenues decreased from Rs. 8,141 lakh in Q4, FY 2020-21 to Rs. 4,271 lakh in Q1, FY 2021-22

• The Company widened its distribution network

• The improved consumer sentiment in June 2021 catalysed sales offtake

• Revenues from products priced at Rs. 10 and above were 54% (46% in Q1, FY 2020-21)

• A wider distribution footprint helped the Company seed its brand with new retailers

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Highlights of our export performance in Q1, FY 2021-22

Exports were 22.5% of revenue

Exports were Rs. 1,242 lakh in Q1, FY 2021-22 (Rs. 1,236 lakh in Q4, FY 202021 and Rs. 770 lakh in Q1, FY 2020-21) and 1,537 lakh in Q1, FY2019-20)

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

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Managing Director Dee ak Jalan’s overview p

Despite the pandemic continuing its effects, we posted double the turnover during the quarter under review in comparison to Q1, FY 2020-21.

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The improvement was owed to focused initiatives: deeper reach, wider range and equipment automation.

The Company drew out a standard operating protocol (SOP) to explore sales in a hesitant economy with a priority on safety cum security that would not endanger stakeholders and employees.

Besides, we believe this change in our business model is laying the foundation of a reinvented Linc.

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

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Performance review, FY 2021-22

Linc recorded a sequential QoQ revenue de-growth of 41% over Q4, FY 2021 and a 201% growth over Q1, FY 2020-21.

The Company reported a decrease in its bottomline level from Rs. 6.20 crore in Q4, FY 2020-21 to Rs. (1.22) crore in Q1, FY 2021-22.

The Company reported a cash profit of Rs. 1.47 crore during the first quarter when compared with a cash loss of Rs. 2.22 crore in Q1, FY 2020-21.

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

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Outlook

Linc Pen and Plastics Ltd. Performance review for investors April to June, FY 2021-22

Linc plans to invest deeper into digital marketing and point of sale promotion to enhance product visibility and offtake

Educational institutions are unlikely to reopen in a quarter even through India’s vaccination pace is accelerating

The Company intends to increase its retail network from 1,48,000 as on 31 March 2021 to 2,00,000 by the end of FY 2021-22

The Company will continue to moderate its inventory and focus on returning to the pre-Covid levels as soon as the country normalises in FY 2021-22

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Summing up

Linc Pen and Plastics Ltd. Performance review for investors

April to June, FY 2021-22

By reinventing its business model and personality, the Company is competently addressing challenges during these tough times through product upgradation, machine automation and increasing focus on non-stationery products, which is expected to translate into sustainable growth.

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