Indigo Paints Ltd · NSE:INDIGOPNTS
Indigo Paints — Q4 FY22 Earnings Presentation
20 slides from Indigo Paints's earnings presentation, May 21, 2022
Slide 1: Intimation of Investor Presentation under Regulation 30
AN INDIGO Be surprised! Date: May 21, 2022 To, To BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C-1, Block G, 25" Floor, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai- 400001 Mumbai - 400051 Scrip
Slide 2: Indigo Paints Ltd Investor Presentation (Q4 & FY22)
INDIGO Paints Ltd Investor Presentation (Q4 & FY 22) 1
Slide 3: 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 4: Agenda for discussion
Agenda for discussion Corporate Update Financials (Q4 FY22) / FY 22 3
Slide 5: Agenda for discussion
Agenda for discussion Corporate Update 4
Slide 6: Corporate Update
Corporate Update • Sales impacted in January and February due to channel over stocking caused by the steep price hikes in Q3 FY22 • Company continued its advertising spends including the IPL as part of its long term Brand building strategy. Intensified new campaign “Jaisa performance waisi price” •
Slide 7: Agenda for discussion
Agenda for discussion Financials (Q4 FY22) / FY 22 6
Slide 8: Indigo Paints | Q4 FY22 financials
Indigo Paints | Q4 FY 22 financials Statement of audited financial results for the quarter and year ended March 31, 2022 (All amounts in rupees lakhs, unless otherwise stated) Sr. No Particulars Quarter ended Mar 31, 2022 Mar 31, 2021 Dec 31, 2021 (Audited) (Audited) (Unaudited) 1 Income: Revenue fr
Slide 9: Indigo Paints | FY22 financials
Indigo Paints | FY 22 financials Statement of audited financial results for the quarter and year ended March 31, 2022 (All amounts in rupees lakhs, unless otherwise stated) Sr. No Particulars Year ended Mar 31, 2022 Mar 31, 2021 (Audited) (Audited) 1 Income: Revenue from operations 90,597.48 72,332.
Slide 10: Indigo Paints | Q4 FY22 financial analysis
Indigo Paints | Q4 FY22 financial analysis Quarterly Financial Highlight RS. Cr Quarterly % Change Particulars Q4 Q3 Q4 Q4 FY 22 vs (Rs. Crs) FY 22 FY 22 FY 21 Q4 FY21 Operational Income 288.38 265.46 254.27 13.41% Other Income 2.51 2.31 1.58 Total 290.88 267.78 255.85 Gross Profit 125.75 113.85 118
Slide 11: Indigo Paints | FY22 financial analysis
Indigo Paints | FY22 financial analysis Annual Financial Highlight RS. Cr Year Ended % Change Particulars FY 22 FY 21 FY 22 vs FY 21 (Rs. Crs) Operational Income 905.97 723.32 25.25% Other Income 10.89 3.59 Total 916.87 726.92 Gross Profit 392.45 346.81 Gross Margin % 43.32% 47.95% A&P 88.06 77.06 1
Slide 12: Analysis | Q4 FY22
Analysis | Q4 FY22 • Q4 FY 22 Operational Income has expanded by 13.41% over Q4 FY 21 • Good sales traction in Kerala and growth continues in strong double digits • Gross Margins have dropped from 46.66% in Q4 FY 21 to 43.61% in Q4 FY 22. However, on a sequential basis, the gross margins have improv
Slide 13: Analysis FY22
Analysis FY 22 • FY 22 Operational Income has expanded by 25.25% over FY 21 • Gross Margins have dropped from 47.95% in FY 21 to 43.32% in FY 22, due to sharp escalation in raw material prices. However, prices of raw materials are relatively stable now • A & P spends in FY 22 have been higher by Rs
Slide 14: Analysis
Analysis • Growth in Q4 has been largely driven by price increases, with volume growth being very low • Trade channels were in an “over bought” position on 1st Jan 2022, due to steep price hikes in Q3, leading to muted offtake in Jan & Feb • Prices of most of raw materials had stabilized in Jan & Fe
Slide 15: Value / Volume Growth (FY22 vs FY21)
Value / Volume Growth (FY 22 vs FY 21) Value Volume Product Category Growth Growth Cement Paints + Putty 7.9% 3.9% Emulsions 39.8% 21.7% Enamels + Wood Coatings 16.0% 2.9% Primers + Distempers + Others 21.4% 5.4% 14
Slide 16: Network expansion
Network expansion 31.3.21 30.6.21 30.9.21 31.12.21 31.03.22 No. of Depots 44 44 44 45 47 Active Dealers 13,214 13,884 14,716 15,242 15,787 Tinting m/c 5,472 5,800 6,383 6,749 7,101 • Two new depots at Delhi & Himachal Pradesh were opened in March 2022 15
Slide 17: Salient Features FY22
Salient Features FY 22 • Our portfolio of differentiated products accounted for 29.6% of Revenues in FY 22, compared to 29.5% of Revenues in FY 21 • Despite good growth in the second half of the year, Kerala’s share of Revenue declined from ~30% in FY 21 to ~28% in FY 22 as Rest of India continued t
Slide 18: Key Metrics for FY22
Key Metrics for FY 22 Particulars FY 20 FY 21 FY 22 Freight expense 10.5% 9.9% 8.9% (% of Net Revenue) Advertising & promotional expense 12.7% 10.7% 9.7% (% of Net Revenue) Employee cost 6.7% 6.7% 6.2% (% of Net Revenue) Other expenses (overheads) 4.0% 3.7% 3.5% (% of Net Revenue) Return on Equity 2
Slide 19: Future guidance
Future guidance • Company growth rate of topline has been more or less in line with industry during last 5 quarters; need to revert to earlier trajectory of 2x growth % vs rest of industry • Company’s earlier focus was on Tier-3/Tier-4 towns during last 20 years; shifting focus to Tier-1/Tier-2 town
Slide 20: Thank You
Thank You INDIGO