Shalimar Paints Ltd · NSE:SHALPAINTS
Shalimar Paints — Q2 FY22 Earnings Presentation
28 slides from Shalimar Paints's earnings presentation, Nov 16, 2021
Slide 1: Intimation of Investor's Presentation
SHALIMAR PAINTS November 16, 2021 BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5h Floor, 1" Floor, New Trading Ring, Plot No. C/1, G- Block Rotunda Building, P.J. Towers, Bandra Kurla Complex, Bandra {E), Dalal Street, Fort, Mumbai - 400 001 Mum
Slide 2: Shalimar Paints Limited Investor Presentation November 2021
Shalimar Paints Limited Investor Presentation November 2021
Slide 3: Safe Harbour
Safe Harbour SHATIMAR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shalimar Paints Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: 1902 / Vision / Mission
Slide 5: Company Overview
Company Overview SHPANTS 100-Year-Young Brand: Renowned for High product quality India’s iconic structures continue to use Shalimar Paints Sper troy fd the ta = ee aaeas avis = eS e ee aS ST : if eee ye eeaaye UNE Sry Re ORL DI Colors we design... Define Kolkata! $ : Adding Shades to India’s Pride F
Slide 6: Journey so far
Journey so far SHPANTS Shalimar Paints Colour & P. Johnson bought control, Became a public limited Name changed to Varnish Co. incorporated in became part of Red Hand company on 27th May Shalimar Paints Ltd on India Composition 18th Sep Acquires the American Nasik Plant Sold to Jhunjhnuwalas & Inter
Slide 7: Our Product Offerings
Our Product Offerings SHALIMAR PAINTS Decorative Paints Industrial Paints An extensive range of decorative and protective paint products for Pioneers in Industrial coatings - Introduced notable firsts in high interior and exterior segments performance coatings such as high-build zinc coatings, radia
Slide 8: Decorative Paints: Strategy Going Ahead
Decorative Paints: Strategy Going Ahead SHPANTS Progress over last a year Focus on areas having significant Y Cost Reduction: presence * Cost saving due to optimization of water & solvent- based paints Expert Program ire) Focus on smaller Tier 3 & 4 towns ; ; v New Product Development: a Increase in
Slide 9: Industrial Paints: Strategy Going Ahead
Industrial Paints: Strategy Going Ahead & SHALIMAR PAINTS From Zonal Business structure to Vertical Create opportunities for growth of Team Market Expansion NON business structure alignment Leaders to take additional responsibilities Each Vertical defined with visible Key * Upskilling the talent poo
Slide 10: Historical Financial Performance
Historical Financial Performance SHATIMAR Steady Revenue growthin boththe segmentsin Unfortunate fire incident at our plants led to loss of capacity | Corrective actions initiated led to Business this period eventually resulting in declining revenues revival until Covid-19 disruptions Mar-14 Fire "
Slide 11: Improved supply chain management
Improved supply chain management SHALIMAR PAINTS o Used simple forecasting model to plan to produce finished goods o Poor Order Management High Supply Chain management cost Challenges Distribution done through conventional o Scope to improve Dispatch efficiency faced Dealing with multiple service pr
Slide 12: Positive outcome on financial performance
Positive outcome on financial performance & SHALIMAR PAINTS 1 1 n ! 96.7 1 Cost Optimization Strategies o 7) 86.3 1 i =} 1 1 o 57.0 62.5 v¥ Improve Supply/ RM Chain Management o a i i aa) I 1 v Improve the Product Supply to Channel partners a 1 1 o 1 1 a» 1 I 1 I v Increase efficiencies at Depots ©
Slide 13: 360° growth strategy: started yielding results
360° growth strategy: started yielding results & SHALIMAR EBITDA (Rs. Crs) Working Capital (No. of days) 61 51 Reduction in Operating Profit Working Capital Turns Positive requirements -33.9 FY20 FY21 FY20 FY21 Other Exp. Cashflow from (% to Revenue) Operating activities (Rs. Crs) 28.1% 15.8 Improvi
Slide 14: Strategy Going Ahead — Product Diversification
Strategy Going Ahead — Product Diversification SHALIMAR PAINTS “Launching of newer products as per the market demand & continuously improving the serviceability” Shalimar Alkali Block Dai We Kolired Weelal Seal-O-Prime Pearl Lustre Exterior Wall Primer Carbonation Coating * Specially formulated prem
Slide 15: Strategy Going Ahead — Business Diversification
Strategy Going Ahead — Business Diversification & SHALIMAR PAINTS “Business Diversification - Exploring the possibility of entering into Sanitaryware category” Feasibility & scope Portfolio to add on of the project to be Will have a to the existing range evaluated in the Launch of a pilot comprehens
Slide 16: Profit & Loss Statement Q2-FY22
Profit & Loss Statement Q2-FY22 SH PAINTS Revenue from Operations COCCI 90.9 76.8 65.2 + Revenue: o Company has reported strong growth in the revenue on the back of good demand from both industrial and decorative segments during the quarter Cost of Materials Consumed 63.0 43.0 42.8 o Contribution fr
Slide 17: Balance Sheet Statement
SHALIMAR Balance Sheet Statement PAINTS Balance Sheet - ASSETS Sep-21 Balance Sheet - EQUITY & LIABILITIES Sep-21 Property, Plant and Equipment 273.3 278.4 Equity Share Capital 10.9 10.9 Right of Use Assets 1.4 0.3 Other Equity 176.0 212.2 Capital Work-in-progress 0.2 0.4 Total Equity 186.9 223.1 In
Slide 18: Cashflow Statement
SHALIMAR Cashflow Statement PAINTS Cash Flow Statement Cash Flow from Operating Activities Profit before Tax (36.3) (18.2) Adjustment for Non-Operating Items (17.1) (15.6) Operating Profit before Working Capital Changes (19.1) (2.6) Changes in Working Capital 4.9 0.5 Cash Generated from Operations (
Slide 19: Business Segment Performance
SHALIMAR Business Segment Performance PAINTS Decorative Paints Industrial Paints Revenues’ (Rs. Crs.) Revenues’ (Rs. Crs.) Revenues. (Rs. Crs.) 300 138 130 438 246 111 119 376 356 215 206 237 99 314 317 FY17s- FY18.—sFY19°—s#FY20.~—S#FYY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Volumes (i
Slide 20: Historical Profit & Loss Statement
Historical Profit & Loss Statement SH NTGAR Revenue from Operations 325.6 343.9 287.6 271.2 349.8 Cost of Materials Consumed 198.4 243.5 213.2 193.1 208.5 Purchase of Traded Goods 21.9 0.0 0.0 0.0 0.0 Changes in Inventories of Finished Goods and Work in Progress 24 -11.2 7.3 15.8 11.0 Gross Profit 1
Slide 21: Balance Sheet (Assets)
Balance Sheet (Assets) ores Property, Plant and Equipment 278.4 288.3 245.7 249.6 221.7 Right of Use Assets 0.3 0.8 0.0 0.0 0.0 Capital Work-in-progress 04 0.1 23.6 0.7 13.74 Intangible Assets 4.6 5.5 - - - Financial Assets (i) Loans 1.5 1.7 (ii) Other Financial Assets 0.1 0.0 6.3 2.3 9.7 Deferred T
Slide 22: Balance Sheet (Equity & Liabilities)
Balance Sheet (Equity & Liabilities) SHPANTS Equity Share Capital 10.9 10.9 11.0 Other Equity 212.2 262.0 294.3 134.0 179.7 Total Equity 223.1 272.9 305.3 138.1 183.8 Financial Liabilities (i) Borrowings 24.1 18.2 18.1 24.9 23.7 (ii) Lease Liabilities 0.0 0.9 0.0 0.0 0.0 (iii) Other Financial Liabil
Slide 23: Cashflow Statement
Cashflow Statement SH NTGAR Cash Flow Statement Cash Flow from Operating Activities Profit before Tax (23.8) (56.16) (109.18) (67.37) (15.21) Adjustment for Non-Operating Items 32.2 56.6 72.6 33.7 30.9 Operating Profit before Working Capital Changes 8.5 0.4 (36.6) (33.7) 15.6 Changes in Working Capi
Slide 24: Balance Sheet Strength
Balance Sheet Strength SHALIMAR PAINTS Borrowings & Cash Balance Debt to Equity Net Debt to Equity Borrowings [J Cash & Cash Equivalents 1.3 ! 11 161 175 145 0.9 0.8 0. 91 0.5 o4 = 8 0.4 | 0.2 Mar-17. Mar-18 Mar-19 Mar-20 = Mar-21 Mar-17_ Mar-18 = =Mar-19 = -Mar-20 ) Mar-21 Mar-17 Mar-18 =Mar-19 Mar
Slide 25: Brand Campaigning Initiatives
Brand Campaigning Initiatives SHPANTS Shalimar has carried out various marketing campaigns from time to time to capture greater mind share of customers and generate pull effect for the brand Lead . 4 YY PAINTS SHALIMAR HAR RANG \. KHOOBSURATPHOTOGRAPHY CONTEST Do you have a story to tell? Show us th
Slide 26: CSR Initiatives
SHALIMAR CSR Initiatives PAINTS wn oe SHALIMAR PAINTS a PT AW CEtaes Click here to wattli video More than 8000sq.ft. painted Support from 15 National & Launched Kahaani Project 4 International organisations * Campaign aimed at beautifying and uplifting the village of Tauli Bhud Artists from 7 differ
Slide 27: CSR Initiatives: Rang Badlaay Ke
SHALIMAR CSR Initiatives PAINTS RANG BADLAAY KE 3000+ homes painted 1000+ graffiti’s 2000+ volunteers from 80+ colleges 30+ corporates and citizens from 20+ countries countless smiles and endless memories... 26
Slide 28: Thank You
Thank You Company : Investor Relations Advisors: @ orient capital Shalimar Paints Limited Orient Capital (a division of Link Group) CIN: L24222HR1902PLC065611 Ms. Neha Shroff: Mr. Mohit Kumar Donter — Chief Financial Officer +91 77380 73466 mohit.donter@shalimarpaints.com neha.shroff@linkintime.co.i