Berger Paints India Limited · NSE:BERGEPAINT
Berger Paints India — Q3 FY23 Earnings Presentation
25 slides from Berger Paints India's earnings presentation, Feb 2, 2023
Slide 1: Earnings Update Call, Q3 FY23
Berger Paints India Limited Earnings Update Call, Q3 FY23 February 2, 2023
Slide 2: Q3 FY23 Performance
& - Leas Berger Q3 FY23 Performance
Slide 3: Decorative Business
Decorative Business • Decorative business showed decent growth in the quarter in- spite of - extended monsoon - very high base effect - short festive season compared to the corresponding quarter last year. • However, growth progressively improved with a double digit growth in December. • Some mix im
Slide 4: Volume and Value Sales Growth, 3Yrs Compounded Growth Rates
Growth Rates 11.2 27.7 3Yrs Compounded 3Yrs Compounded 6.6 17.0 Growth 15.9 % Growth 15.3% Q3FY22 Q3FY23 YTD Dec FY22 YTD Dec FY23 Volume Sales Growth% Volume Sales Growth % 21.2 37.6 3Yrs Compounded 25.3 3Yrs Compounded Growth 17.2% Growth 17.3% 7.2 Q3FY22 Q3FY23 YTD DEC FY22 YTD DEC FY23 Values Sa
Slide 5: Decorative Business
Decorative Business • Strong network expansion for the business. - Added around 8000 retail Sales points in YTD Dec FY23 • Around 4300 Colorbank Machines installed in YTD Dec23 • Construction chemicals segment registered very strong growth in the quarter • Expect to gain market share going by the in
Slide 6: New Product launches
New Product launches Coal-tar based solution for rising dampness in new construction Comes with 15 year warranty
Slide 7: Industrial Business
Industrial Business • GI and Auto business showed good growth in the quarter. • Protective and infrastructure business continued its double-digit growth aided by infrastructure spending. • Further price increases were realised in the quarter. • Powder Coatings business line had significant degrowth
Slide 8: Profitability
Profitability Profitability decline in the quarter mainly on account of – Q3FY22 Q3FY23 • Due to capacity constraints the company had to -9.1 build up inventory in anticipation of festive season - the inventory lasted throughout the period & hence the benefit of lower RM prices -9.4 could not be rea
Slide 9: Profitability
Profitability • Further softening of Rutile, Monomer and Raw Material Price movement Solvent prices are likely to lead to profitability 350 improvement going forward. 300 250 • Commencement of commercial production in Rs / KG 200 Sandila plant will also lead to lower inventory holding and working ca
Slide 10: Capacity Expansion
Capacity Expansion 31% Commercial Production starts from February 2023 New manufacturing facility at Sandila, Uttar Pradesh Estimated outlay 1000+ Crores ; Installed capacity of 33000 KL/MT (per month)
Slide 11: Financial Performance
Financial Performance
Slide 12: Growth (%) - Standalone Q3 FY23
GROWTH (%) - Standalone Q3 FY23 7.2 Total income from PBDIT (Excluding Other PBIT PBT PAT operations Income) -4.6 -6.0 -9.3 -9.4
Slide 13: Growth (%) - Standalone YTD Dec FY23
GROWTH (%) - Standalone YTD Dec FY23 25.3 17.4 15.5 15.5 14.2 Total income from PBDIT (Excluding Other PBIT PBT PAT operations Income)
Slide 14: Financial Results – Standalone Q3 FY23
Financial Results – Standalone Q3 FY23 Rs Crores % to Total % to Total Q3 FY 22 Income Q3 FY 23 Income Growth % Total income from operations 2,256.24 2,418.91 7.2 Material Cost 1,443.69 63.99 1,600.91 66.18 Employee Cost 98.34 4.36 111.48 4.61 Other expenses 370.58 16.42 395.22 16.34 PBDIT (Excludin
Slide 15: Financial Results – Standalone YTD Dec FY23
Financial Results – Standalone YTD Dec FY23 Rs Crores YTD DEC % to Total YTD DEC % to Total FY 22 Income FY 23 Income Growth % Total income from operations 5,813.10 7,281.33 25.3 Material Cost 3,655.83 62.89 4,765.82 65.45 Employee Cost 302.26 5.20 342.72 4.71 Other expenses 986.64 16.97 1,169.48 16
Slide 16: Income from operations Growth % - Standalone
Income from operations Growth % - Standalone 96.0 53.0 53.7 24.0 26.1 21.2 22.5 7.3 7.2 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
Slide 17: Gross Margin Trend (%) - Standalone
Gross Margin Trend (%) - Standalone 43.7 43.8 42.3 40.2 37.9 37.7 38.3 36.0 35.3 34.5 33.8 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23
Slide 18: Consolidated Q3 FY23 - Growth (%)
Consolidated Q3 FY23- Growth (%) 5.6 Total income from PBDIT (Excluding Other PBIT PBT PAT operations Income) -10.8 -15.7 -20.2 -20.5
Slide 19: Consolidated YTD Dec FY23 - Growth (%)
Consolidated YTD Dec FY23- Growth (%) 23.6 13.6 11.8 10.1 9.5 Total income from PBDIT (Excluding Other PBIT PBT PAT operations Income)
Slide 20: Financial Results - Consolidated: Q3 FY23
Financial Results- Consolidated: Q3 FY23 Rs Crores % to Total % to Total Q3 FY 22 Income Q3 FY 23 Income Growth % Total income from operations 2,550.77 2,693.59 5.6 Material Cost 1,615.26 63.32 1,759.13 65.31 Employee Cost 136.03 5.33 148.10 5.50 Other expenses 407.37 15.97 436.71 16.21 PBDIT (Exclu
Slide 21: Financial Results - Consolidated: YTD Dec FY23
Financial Results- Consolidated: YTD Dec FY23 Rs Crores % to Total % to Total YTD Dec FY 22 Income YTD Dec FY 23 Income Growth % Total income from operations 6,574.27 8,124.21 23.6 Material Cost 4,092.67 62.25 5,260.34 64.75 Employee Cost 408.99 6.22 454.50 5.59 Other expenses 1,087.98 16.55 1,290.9
Slide 22: Income from operations Growth % - Consolidated
Income from operations Growth % - Consolidated 93.2 53.4 49.5 24.9 27.7 20.4 20.0 8.0 5.6 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23
Slide 23: Financial Results - Consolidated: Q3 FY23
Financial Results- Consolidated: Q3 FY23 Company’s subsidiary, STP Ltd showed strong growth on sales and profits aided by improvement in gross margin on the back of lower RM prices. SBL Specialty Coatings Ltd even though had a marginal degrowth in the topline, profitability improved on account o
Slide 24: Outlook
Outlook • Demand outlook expected to be good in the coming quarter • Mix improvement likely in the coming quarters supported by increased sale of exterior coatings • Industrial sales outlook remain strong on the back of upturn in auto sector and government spending in infrastructure. • However, exch
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by Berger Paints India Limited for information purposes only. The forward looking statements, if any, involve risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the statements.