Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q2 & H1 FY2021 Earnings Presentation
17 slides from Asian Paints's earnings presentation, Oct 22, 2020
Slide 1: Exchange filing cover letter for investor presentation
APL/SEC/19/2020-21/42 22nd October, 2020 BSE Limited The National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C/1, Phiroze Jeejeebhoy Towers, Block G, Bandra – Kurla Complex, 25th Floor, Dalal Street, Bandra (East), Fort, Mumbai – 400 001 Mumbai – 400 0
Slide 2: Asian Paints Investor Conference Q2 & H1 FY2021 Results
ASIAN PAINTS INVESTOR CONFERENCE Q2 & H1 - FY2021 Results
Slide 3: This communication, except for the historical information, may contain statements which reflect the management’s
This communication, except for the historical information, may contain statements which reflect the management’s current views and estimates and could be construed as forward looking statements. The future involves certain risks and uncertainties that could cause actual results to differ materially
Slide 4: Asian Paints at a glance
3rd Largest 3 USD 2.8 Billion Paint Times nearest Group revenue Co. in Asia Competitor in India 9th 26 Largest Operations in Paint Coatings Co. 15 Manufacturing in the World countries Plants Servicing 50+ Years 75+ Years 150,000+ of of Re t a i l er s d i r e c tl y/ Market Leadership Innovation I n
Slide 5: Covid cases in India still rising, but pace seems to have peaked
Covid cases in India still rising, but pace seems to have peaked Real GDP shrinking by 23.9% in Q1 on expected lines Demand recovery acceleration witnessed across sectors in Q2 led by progressive “unlock” phases by Central & State Governments Supply side concerns easing incrementally Pent up
Slide 6: Paint industry on a recovery mode
Paint Industry on a recovery mode, gaining from last month of Q1 - led strongly by tier 2 / 3 / 4 markets Strong 11% volume growth in Q2 for the domestic decorative business Volume growth improved in each of the months in the quarter Demand recovery centered around Economy , Premium & some Lu
Slide 7: Double digit volume growth in Q2
Continued momentum with double digit volume growth in Q2 after registering a double digit growth in June’20
Slide 8: Lightings, Furnishings and Furniture added to Home décor
A tailor-made solution that offers design expert consultation, personalized designs, unparalleled project management and hassle-free execution, you can transform your space into the home of your dreams Recently introduced Lightings, Furnishings and Furniture thus adding more products in the Home déc
Slide 9: Sanitizers & Disinfectants, Wall Paints, Mask & PPE Kits
SANITIZERS & DISINFECTANTS WALL PAINTS MASK & PPE KITS
Slide 10: International business performance
Volume growth picked up across markets in Q2 Performance led by good volume growth in Africa & Middle East Units in Sri Lanka and Bangladesh clocked double digit volume growths Nepal still under pressure due to large restrictions related to Covid Strong push around new products / variants
Slide 11: PPG-AP and AP-PPG industrial businesses
PPG-AP Strong uptick in Passenger vehicles & 2-wheelers builds indicative of a recovering trend OEM business reported good growth in Q2 after a sluggish Q1 Refinish business, though better than Q1, still low AP-PPG Gradual recovery seen in Q2 Powder business leading the recovery Indu
Slide 12: Kitchen Business and Bath Business
Kitchen Business Registered sales of ` 61 crores in Q2 touching base of previous year First half sales at ` 86 crores, lower than previous year by 26% Components as well as Full Kitchens segments recovered well in Q2 Projects segment, too, saw some pick-up on a sequential basis PBT loss
Slide 13: PBDIT margin and PBDIT
19.5% 5.8% 21.5% 27.6% 17.7% 31.6% 33.7% 0.3% 0.6% Figures in ` crores Figures in ` crores PBDIT PBDIT margin margin +5% +0.5% PAT lower due to tax reversal in last year with lowering of Corp. Tax rate. On a like to like basis, PAT growth in line with PBT growth
Slide 14: PBDIT margin and PBDIT
18.5% 5.9% 31.6% 18.4% 22.7% 29.5% 34.4% 0.8% Figures in ` crores Figures in ` crores PBDIT PBDIT margin margin +4.7% PAT lower due to tax reversal in last year with lowering of Corp. Tax rate. On a like to like basis, PAT growth in line with PBT growth
Slide 15: Dividends FY 2020-21 and FY 2019-20
FY 2020-21 Interim Dividend 335% (` 3.35 per share) Interim Dividend 1050% (` 10.50 per share) * FY 2019-20 Final Dividend 150% (` 1.50 per share) * Two interim dividends of ` 3.35 per share and Total Dividend 1200% (` 12.00 per share) ` 7.15 per share Payout Ratio : 51.1%
Slide 16: Outlook: recovery in Q2 led by seasonal demand
Good Recovery in Q2 led by some seasonal demand in the market due to Festivals Real question is: Whether it will sustain beyond the Festive season? Still uncertain on that front Global recovery could support the Export sector in India Early signs of recovery with Sep’20 Exports growth in pos
Slide 17: Thank you
Thank you