Indigo Paints Ltd · NSE:INDIGOPNTS
Indigo Paints — Q2 FY22 Earnings Presentation
17 slides from Indigo Paints's earnings presentation, Oct 29, 2021
Slide 1: Exchange intimation cover letter for investor presentation
(jJ INDIGO Be surprised! Date: October 29, 2021 To, To BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C- l , Block G, 25'h Floor, Phiroze Jeejeebhoy Tewers, Bandra Kurio Complex, Sandra (East) Dala l Street, Mumbai- 40000 l Mumbai - 40
Slide 2: Indigo Paints Ltd Investor Presentation (Q2 FY22)
INDIGO Paints Ltd Investor Presentation (Q2 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 Quarterly Financials (Q2 FY22) 3
Slide 5: Introduction
Introduction • Gradual easing of Covid restrictions in Q2 • In Kerala, where we have a large exposure, the easing of restrictions started in August; sales were subdued till July, but bounced back sharply in August & September • Good sales growth throughout the country; could have been better, but fo
Slide 6: Indigo Paints Q2 FY22 financials
Indigo Paints Q2 FY 22 financials Statement of unaudited financial results for the quarter and six months ended September 30, 2021 (All amounts in rupees lakhs, unless otherwise stated) Sr. No Particulars Quarter ended Sep 30, 2021 Jun 30, 2021 Sep 30, 2020 (Unaudited) (Unaudited) (Unaudited) 1 Inco
Slide 7: Indigo Paints H1 FY22 financials
Indigo Paints H1 FY 22 financials Statement of unaudited financial results for the quarter and six months ended September 30, 2021 (All amounts in rupees lakhs, unless otherwise stated) Sr. No Particulars Six months ended Year ended Sep 30, 2021 Sep 30, 2020 Mar 31, 2021 (Unaudited) (Audited) (Audit
Slide 8: Indigo Paints Q2FY22 financial analysis
Indigo Paints Q2FY22 financial analysis Quarterly Financial Highlight RS. Cr Quarterly % Change Particulars Q2 Q2 Q1 Q2 Q2 FY 22 vs Q2 FY 22 vs (Rs. Crs) FY 20 FY 21 FY 22 FY 22 Q2 FY21 Q2 FY20 Operational Income 128.71 154.84 156.02 196.11 26.65% 52.37% Other Income 0.64 3.02 3.05 Total 155.48 159.
Slide 9: Indigo Paints H1FY22 financial analysis
Indigo Paints H1FY22 financial analysis Half-Yearly Financial Highlight RS. Cr Six Months Ended % Change Particulars H1 H1 H1 H1 FY 22 vs H1 FY 22 vs (Rs. Crs) FY 20 FY 21 FY 22 H1 FY21 H1 FY20 Operational Income 272.64 259.42 352.13 35.74% 29.16% Other Income 0.82 6.07 Total 260.24 358.20 Gross Pro
Slide 10: Analysis
Analysis • Q2 FY 22 Revenue from Operations has expanded by 26.65% over Q2 FY 21; however, more relevant to look at 2-year topline growth (to remove covid effect), and our top line grew by 52.37% compared to Q2 of FY 20, perhaps the highest in paint industry. • Gross Margins have dropped from 45.52%
Slide 11: Analysis
Analysis • H1 FY 22 Revenue from Operations has expanded by 35.74% over H1 FY 21; however, our 2-year topline grew by 29.16% compared to H1 of FY 20, perhaps the highest in paint industry. • Gross Margins have dropped from 47.88% in H1 FY 21 to 43.41% in H1 FY 22, due to sharp escalation in raw mate
Slide 12: Analysis
Analysis • There has been unprecedented escalation of raw material prices across all categories in recent months. Despite repeated price hikes during last 10 months, it has not been able to match the increase in RM prices. • Raw material price escalation is partly due to global shortages of some mat
Slide 13: Value / Volume Growth (Q2 FY22 vs Q2 FY21)
Value / Volume Growth (Q2 FY 22 vs Q2 FY 21) Value Volume Product Category Growth Growth Cement Paints + Putty 11.5% 9.2% Emulsions 40.6% 24.2% Enamels + Wood Coatings 20.3% 10.2% Primers + Distempers + Others 43.3%% 31.1% 12
Slide 14: Analysis (Value/Volume growth)
Analysis (Value/Volume growth) • Analysis of Volume growth and Value growth across broad categories of decorative paints are shown, as we feel that overall volume growth numbers do not reveal much • Due to several rounds of price increases, the value growth in each category is higher than volume gro
Slide 15: Network expansion
Network expansion 31.3.21 30.6.21 30.9.21 No. of Depots 44 44 44 Active Dealers 13,214 13,884 14,716 Tinting m/c nos. 5,472 5,800 6,383 • We have recently opened one new Depot in October 2021, taking our count to 45 • Above expansion expected to further accelerate in current and future Quarters, as
Slide 16: Future guidance
Future guidance • Expect to see continued good growth in topline in Q3, with improving profitability margins • Some innovative category-creator products being readied for launch in November • Will attempt to take Active dealer count to 17,000 by year-end, and Tinting machine population to 8000 • Wil
Slide 17: Thank You
Thank You INDIGO