Indigo Paints Ltd · NSE:INDIGOPNTS
Indigo Paints — Q4 FY24 Earnings Presentation
36 slides from Indigo Paints's earnings presentation, May 2024
Slide 1: Investor Presentation (Q4 FY24)
INDIGO Paints Ltd Investor Presentation (Q4 FY 24) a INDIGO
Slide 2: Disclaimer
Disclaimer Certain statements and opinions with respect to the anticipated future performance of Indigo Paints Ltd (“Indigo”) in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be
Slide 3: Contents
Contents Financial Update Standalone (Q4 FY24 & FY24) 4 FY2:
Slide 4: Robust business fundamentals with industry leading growth - Standalone Q4 FY24
i g ‘i. F INDIGO Robust business fundamentals with industry leading growth ners Standalone | Q4 FY24 Rs. 366.1 Gr 49.3% 22.5% Revenue from Operations Gross Margin % EBITDA Margin % Industry Leading Gross EBITDA Rs. 82.3 @ 14.5% 6.3% . A&P as % of Revenue PAT Margin % from Ops PAT Rs. 53.5 Gr YoY red
Slide 5: Robust business fundamentals with industry leading growth - Standalone FY24
i g ‘i. F INDIGO Robust business fundamentals with industry leading growth ners Standalone | FY24 Rs. 1,254.9 & 47.9% 18.5% Revenue from s Operations Gross Margin % EBITDA Margin % Industry Leading Gross EBITDA Rs. 232.7 @& 11.7% 7A% 22.3% . A&P as % of Revenue RoCE % PAT Margin % from Operation PAT
Slide 6: Consistent growth with continued margin expansion
Financial update (sui Consistent growth with continued margin expansion INDIGO Sales (INR Cr) EBITDA (INR Cr) "2549 SS :: 1ora.8 181.5 325.5 366.1 |_| | | QA FY23 QA FY24 FY23—FY24 i FYE QA FYE | AVAL PAT {INR Cr) RoCE (%} 148.7 : 20.9% 1156 10.7% Fy23 FY24 Q4 FY23 Q4 FY24 FY23FY24 “Adjusled for rev
Slide 7: Financial Analysis
Financial Analysis Company has outperformed industry growth by 3-4x consistently for last 4 quarters > 2 Indigo continues to maintain pole position in gross margin. Q4 Gross margin was the highest in the history of the company. > 3 Indigo continued to invest in brand building. The A&P expense for FY
Slide 8: Contents
Contents Financial Update Standalone (Q4 FY24 & FY 24) Consolidated (Q4 FY24 & FY 24)
Slide 9: Strong business fundamentals - Consolidated Q4 FY24
i F Si. & i INDIGO Strong business fundamentals with industry leading growth ners Consolidated | Q@4 FY24 Rs. 384.9 Gr 48.9% 22.0% Revenue from Operations Gross Margin % EBITDA Margin % Thee 14.0% PAT Margin % PAT Rs. 54.4Cr 11.8% YoY Growth
Slide 10: Robust business fundamentals - Consolidated FY24
i ‘ agi. & F INDIGO Robust business fundamentals with industry leading growth ners Consolidated | FY24 Rs. 1,306.1 G& 47.6% 18.2% Revenue from Operations Gross Margin % EBITDA Margin % Industry Leading Gi EBITDA Rs. 238.1 @& 11.3% 22.8% PAT Margin % RoCE % PAT Rs. 148.8 Gr : 1 0 10 * Adjusted for re
Slide 11: Outperformance across all key financial metrics
Financial =o ry, Outperformance across all key financial metrics INDIGO Sales (INR Cr) EBITDA (INR Cr) 1,306.1 1,073.3 181.5 <_ i 717 iG eal BA FY23 OA Fiza Pas Gt Q4FY23 QA FY24 FY23FY24 PAT (INR Cr) ROCE (%) 22.8% 20.9% Q4 FY23 Q4 FY24 FY23 FY24 Adjusled for reversal of Rs.16.3 Cr excess lax provi
Slide 12: Consistently outpacing industry growth by 3-4x in FY24
‘oc A ee ay Consistently outpacing industry growth by 3-4x in FY 24 INDIGO mam indigo Paints =%=Industry 28.8% 25.8% 18.3% 15.0% QUFY24 Q2FY24 Q3FY24 Q4FY24 Source: Paints company data based on latest filings of publicly listed peers (Consolidated)) 2
Slide 13: Industry leading gross margins backed by a differentiated product portfolio
es Industry leading gross product portfolio 47.3% 41.2% QIFY24 YoY expansion +214 {in bps) margins backed by a differentiated nlc? Indigo Paints =| Paint companies' average 48.9% 48.2% 45.6% ; 41.9% 42.2% 42.0% Q2FY24 Q3FY24 Q4FY24 + 386 + 436 + 204 Source: Painis company daia based on latest filing
Slide 14: Financial snapshot for last 5 years
Financial update Financial snapshot for last 5 years Sales (INR Cr} 1,306.1 1,073.3 906.0 624.8 I | FY20 FY21 FY22 FY23 FY24 PAT (INR Cr) a ner 115.6 " a FY20 FY21 FY22 FY23 FY24 Note: Financials on a consolidated basis EBITDA (INR Cr) 2381 161.5 qo05 136.0 91.0 FY20 FY21 FY22 FY23 FY24 ROCE (%) 34.
Slide 15: Contents
Contents Financial Update Standalone (Q4 FY24 & FY 24) Consolidated (Q4 FY24 & FY 24)
Slide 16: Product category snapshot for Q4 FY24
te Ki Product category snapshot for Q@4 FY24 INDIGO YoY growth for Q4 FY24 vs. Q4 FY23 Putty + Cement Paints 21.4% 20.2% Emulsions 9.1% 13.7% Enamels and wood coatings -1.0% 3.4% Primers + Distempers + Others 16
Slide 17: Stellar growth across the product categories
By Stellar growth across the product categories INDIGO FY24 growth (YoY growth vs. FY23) Putty + Cement Paints 35.9% 35.5% Emulsions 15.0% 15.4% Enamels and wood coatings 13.6% 15.8% Primers + Distempers + Others 32.2% 33.0% 17
Slide 18: Continued network expansion
Continued network expansion INDIGO AG Active dealers and depots (#) i. @ @ @ @ @ @ @ @ x, LD ID ED ED CEP GUD ED ID | v3 eal bose incracsod to mfe 18,105 and focus continues to be on improving throughput per dealer 18,105 17,745 * Tinting machines increased by ~ 17.148 1,600 in FY24 Ded tess (OS 187
Slide 19: Contents
Contents Financial Update Standalone (Q4 FY24 & FY 24) Consolidated (Q4 FY24 & FY 24) KPI Growth Drivers Sustainability initiatives
Slide 20: Future growth drivers - Indigo Paints 2.0 Strategy
Growth cae ay Future growth drivers — Indigo Paints 2.0 Strategy INDIGO —— Y. Expansion into adjacencies * Expand into non 444) IV. Brand decorative segment. Foray oO & marketing focus into adjacencies like construction chemicals & waterproofing. lll. Capacity augmentation -being future read * Ramp
Slide 21: Product Innovation | Differentiated Products
ie Ay Product Innovation | Differentiated Products INDIGO ( ‘ i First company to introduce category-creator products like (3y) Metallic Emulsions, Tile Coat Emulsions, Bright Ceiling Coat Emulsions and Floor Coat Emulsions in the w decorative paint market in India Basket of Unique products includes
Slide 22: Product Innovation | Water Proofing & Construction Chemicals
AN Product Innovation | Water Proofing & Construction Chemicals — "N2IS° Key innovations in FY2024 Say goodbye to waterproofing worries. Introducing Indigo Protect Plus Series 22
Slide 23: Product Innovation | Water Proofing & Construction Chemicals
Growth AG INDIGO Product Innovation | Water Proofing & Construction Chemicals ve Key innovations in FY2024 Damp Seal Primer Protects the wall by providing resistance cogainst water seepage. For both Interior & Exterior wails Leakproof Emulsion A 2-in-1 coating that combines waterproofing and heat re
Slide 24: Geographical Expansion | Focus on expanding our distribution network
aN Geographical Expansion | Focus on expanding our distribution network0lso 5 Manufacturing plants 28 = States 53 Depots 18,000+ Active dealers 10,000 Tinting machines 24
Slide 25: Capacity Augmentation | Continued push towards increasing capacity
Growth ra rT) Capacity Augmentation | Continued push towards increasing capacitynpico State of the art water based paint plant at Pudukkottai Tamil Nadu in FY 24 Upcoming Plant at Jodhpur * Proposed solvent plant at Jodhpur with capacity of 12,000 KLPA * Proposed water based plant at Jodhpur with ca
Slide 26: Brand Focus | Consistent focus to build a pan-India brand
Growth cae ay Brand Focus | Consistent focus to build a pan-India brand INDIGO Besurprisedt Advertising & Promotional Spends (INR Cr) 92.32 88.06 82.70 79.05 7706 67.66 | I | FY19 FY20 FY21 FY22 FY23 FY24 INDIGO D&W ‘) EXTERIOR LAMINATE (One paint, Double advantage. 26
Slide 27: Brand Focus | Consistent focus to build a pan-India brand
Brand Focus | Consistent focus to build a pan-India brand By INDIGO Be surprised! Indigo INDIGO LEAKPROOF EMULSION aa PU Enamel. oD Shine that bowls you over. Indigo Interior Sheen Emulsion Outshines everything! 27
Slide 28: Marketing Focus | Gaining loyalty of channel partners
AG Marketing Focus | Gaining loyalty of channel partners INDIGO esurpried! 28
Slide 29: Marketing Focus | Gaining loyalty of channel partners
AG Marketing Focus | Gaining loyalty of channel partners INDIGO esurpried! 29
Slide 30: Expansion into Construction Chemicals & Waterproofing
aes BY Expansion into Construction Chemicals & Waterproofing INDIGO * Indigo Paints acquired 51% of Apple Chemie India Ltd to foray into construction chemicals & water proofing segment (WPCC) * WPCC products for retail channel launched and marketed under Indigo brand (Protect Plus Series) while Appl
Slide 31: Contents
Contents Financial Update Standalone (Q4 FY24 & FY 24) Consolidated (Q4 FY24 & FY 24) KPI Growth Drivers Sustainability initiatives
Slide 32: Sustainability initiatives
AN INDIGO esurpried! —— Deployment of EV for last SBTi signatory for near 9 mile delivery term target Started deploying EV for last mile Committed to set a science-based delivery towards a greater goal of emission reduction target with the Science carbon reduction Based Targets initiative. —= Propos
Slide 33: CSR
CSR Education assistance & career Tie up with NGO for guidance provided to over 300 imparting grassroot girls through Payal Jalan Trust leadership development — Educare initiative program. Over 1000+ beneficiaries Tie up with Cancure foundation near Kochi Factory to provide free dialysis & palliativ
Slide 34: Contents
Contents Financial Update Standalone (Q4 FY24 & FY 24) Consolidated (Q4 FY24 & FY 24) KPI Growth Drivers Sustainability initiatives Outlook
Slide 35: Outlook
Outlook 1 The Company expects to continue to grow its revenue at 3-4x of industry growth 2 We expect to maintain the gross margins at current levels for the entire fiscal, although quarterly variations will be visible due to seasonal changes in product mix 3 The A&P expense for the entire fiscal is
Slide 36: Thank You
Thank You aN surpree! 36