Berger Paints India Limited · NSE:BERGEPAINT
Berger Paints India — Q3 FY24 Earnings Presentation
23 slides from Berger Paints India's earnings presentation, Feb 6, 2024
Slide 1: Cover letter to stock exchanges on investor presentation
6th February, 2024 STOCK. EXG/ AG/ 2023-24 The Corporate Relationship The Listing Department Listing Department Department National Stock Exchange of The Calcutta Stock BSE Limited, India Limited Exchange Ltd. 1st Floor, Exchange Plaza, 5th Floor, 7 Lyons Range, Phiroze Jeejeebhoy Towers, Plot No.-C
Slide 2: Earnings Update Call, Q3 FY24
Berger Paints India Limited Earnings Update Call, Q3 FY24 February 6, 2024
Slide 3: Q3 FY24 Performance
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Slide 4: Business highlights: Q3FY24 - Standalone
Business highlights : Q3FY24 - Standalone Q3 FY24 Growth% • Sustained encouraging top line growth for the 38.0 quarter both on volume and value 9.1 6.4 • Decorative business outperformed others with double digit growth • Strong profitability growth on YoY basis Volume Value EBITDA Sales Sales • Gros
Slide 5: Financial Results – Standalone Q3 FY24
Financial Results – Standalone Q3 FY24 Rs Crores % to Total % to Total Q3 FY24 Income Q3 FY23 Income Growth % Total income from operations 2,574.2 2,418.9 6.4 Material Cost 1,535.6 59.7 1,600.9 66.2 Employee Cost 136.7 5.3 111.5 4.6 Other expenses 472.4 18.3 395.2 16.3 PBDIT (Excluding Other Income)
Slide 6: Financial Results – Standalone YTD Dec 23
Financial Results – Standalone YTD Dec 23 Rs Crores % to Total % to Total YTD Dec 23 Income YTD Dec 22 Income Growth % Total income from operations 7,753.8 7,281.3 6.5 Material Cost 4,659.7 60.1 4,765.8 65.5 Employee Cost 408.3 5.3 342.7 4.7 Other expenses 1,339.4 17.3 1,169.5 16.1 PBDIT (Excluding
Slide 7: Topline performance: Q3 FY24 - Standalone
Topline performance : Q3 FY24 - Standalone Q3 FY24 Growth% • Improved volume growth over corresponding period last year 9.1 • The gap between volume & value narrowed down against the previous quarter backed by mix 6.4 improvement • However, the volume - value gap in the quarter was on account of : o
Slide 8: Powering Ahead with Strong Profits: Q3FY24 - Standalone
Powering Ahead with Strong Profits : Q3FY24 - Standalone • Robust profitability growth driven by further improvement of Gross EBITDA Growth% Margin at 40.3% 38.0 • Gross Margin improvement mainly aided by lower raw material 34.2 prices and some formulation savings • Operating margin expansion of 380
Slide 9: Standalone - Consistent Growth Trajectory
Standalone - Consistent Growth Trajectory YTD YTDDec Dec2323Volume VolumeSales SalesCAGR% CAGR% 18.3 13.9 14.6 13.6 Consistent double digit growth 2 yrs 3 yrs 4 yrs 5 yrs registered over 2/3/4/5 years on a compounded basis at YTD level YTD Dec 23 Value Sales CAGR% 22.4 However, QoQ variations can ha
Slide 10: Standalone Gross Margin (%) – Scaling new heights
Standalone Gross Margin (%) – Scaling new heights 40.0 40.3 39.6 39.4 38.3 37.7 36.0 35.3 34.5 33.8 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Highest Gross Margin in last 10 quarters
Slide 11: Standalone - Operating Margin Trajectory
Standalone - Operating Margin Trajectory 18.8 16.3 16.5 16.7 15.7 15.6 15.2 15.0 13.6 13.4 12.9 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Marking another quarter of growth
Slide 12: Decorative Business Q3 FY24
Decorative Business Q3 FY24 o Decorative business showed double digit growth in spite of an impact of price decrease o Construction chemical & waterproofing business had another quarter of stellar performance o Wood coatings business also did extremely well o T2 and T3 cities showed greater traction
Slide 13: New Products
: New Products
Slide 14: Top Performing Innovative Products
Top Performing Innovative Products
Slide 15: Digital Initiatives: A Complete Transformation
Digital Initiatives : A Complete Transformation My Colour AI App Lead generation e Sambandh DBT Impact of such initiatives will be visible next year
Slide 16: Industrial Business: Q3FY24
Industrial Business : Q3FY24 Protective Coatings Automotive and General Powder Coatings business maintained its consistent Industrial business had line had a modest growth growth in the quarter decent growth in quarter even in the quarter on the back on a high base in the of demand revival of fan co
Slide 17: Net debt – Standalone: Q3 FY24
Net debt – Standalone : Q3 FY24 940 862 461 324 Achieved Net cash positive position 68 -56 ahead of guidance Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23
Slide 18: Performance - Consolidated: Q3 FY24
Performance - Consolidated: Q3 FY24 Value Sales Growth% 7.0 6.4 Consolidated topline performance Standalone Consolidated outperformed Standalone on the back of consistent topline growth and even EBITDA Growth% stronger profitability growth for all 38.0 37.3 subsidiaries in India and overseas except
Slide 19: Financial Results- Consolidated Q3FY24
Financial Results- Consolidated Q3FY24 Rs Crores % to Total % to Total Q3FY24 Income Q3FY23 Income Growth % Total income from operations 2,881.8 2,693.6 7.0 Material Cost 1,698.1 58.9 1,759.1 65.3 Employee Cost 181.5 6.3 148.1 5.5 Other expenses 522.2 18.1 436.7 16.2 PBDIT (Excluding Other Income) 4
Slide 20: Financial Results- Consolidated YTD Dec 23
Financial Results- Consolidated YTD Dec 23 Rs Crores % to Total % to Total YTD Dec 23 Income YTD Dec 22 Income Growth % Total income from operations 8,678.6 8,124.2 6.8 Material Cost 5,150.6 59.3 5,260.3 64.7 Employee Cost 538.6 6.2 454.5 5.6 Other expenses 1,479.0 17.0 1,290.9 15.9 PBDIT (Excluding
Slide 21: Performance - Consolidated: Q3 FY24
Performance - Consolidated: Q3 FY24 ▪ Company’s overseas subsidiary, Bolix S.A, Poland had a quarter of strong double digit growth in topline and profitability helped by a sharp expansion in operating margin. The company also achieved a constant currency growth in the quarter. ▪ Company’s overseas s
Slide 22: Business Outlook: Q4FY24
Business Outlook : Q4FY24 • Company expects demand momentum to continue in Q4FY24 in decorative segment on the back of improvement in rural demand • Automotive business expected to continue with double digit growth in Q4FY24 on the back of sustained demand in auto sector • Protective Coating busines
Slide 23: 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.