Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q2 FY2024 Earnings Presentation
29 slides from Asian Paints's earnings presentation, Oct 26, 2023
Slide 1: Exchange intimation letter for investor presentation
APL/SEC/32/2023-24/55 26th October 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Security Code: 500820 Symbol: ASIANPAINT Sir/Madam, Sub: Investor
Slide 2: Investor Conference Q2 - FY2024 Results
op asianpaints Investor Conference Q2 - FY2024 Results
Slide 3: Delivering joy since 1942
Delivering joy since 1942…. We exist to Beautify, Preserve, Transform all Spaces and Objects, bringing happiness to the World! 2
Slide 4: Disclaimer
Disclaimer 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 many risks and uncertainties that could cause actual results to differ mat
Slide 5: Decorative Business (India): Moderation in Topline
Decorative Business (India) Moderation in Topline Reflecting Weak Consumer Sentiment; Healthy Exit in September 14.7% 4 Yr CGR 14.7% 4 Yr CGR Q2 FY'23 20.2% Q2 FY'24 10% 6% 0.5% Volume Gr% Value Gr% H1 FY'23 16.0% 4 Yr CGR 15.9% 4 Yr CGR H1 FY'24 37.3% 22% 8% 4.2% Volume Gr% Value Gr% 4
Slide 6: Decorative Plus Industrial Paints
Decorative Plus Industrial Paints Overall Domestic Paints (Deco plus Industrial) Improves the Top Line Marginally Q2 FY'23 14.5% 4 Yr CGR Q2 FY'24 14.7% 4 Yr CGR 20.6% 10% 6% 1.1% Volume Gr% Value Gr% 15.7% 4 Yr CGR H1 FY'23 15.7% 4 Yr CGR H1 FY'24 37.5% 21% 8% 4.8% Volume Gr% Value Gr% 5
Slide 7: Decorative Business (India): Consistent Double-Digit Volume Trajectory
Decorative Business (India) A Consistent Double- Digit Volume Trajectory on 4 Year Compounded Growth Rate Basis *18.2% *21.5% *20.3% *17.5% *14.8% *15.9% *17.5% *14.7% 200 *15.2% *15.0% 160 120 80 40 - Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Qu
Slide 8: Decorative Business (India): Scorecard of our Growth Drivers
Decorative Business (India) Scorecard of our Growth Drivers ❑ High single-digit volume growth across urban ❑ Strong traction for our Safe Painting Service markets; rural growth a notch lower (SPS) & Trusted Contractor Service (TCS) ▪ Over 4 years, both rural & urban centers ▪ Exponential growth over
Slide 9: Nilaya Naturals Eco System
NILAYA NATURALS ECO SYSTEM PRIMER TOP-COAT PUTTY Pushing the Boundaries on Innovation ❑ Nilaya Naturals has over 90% natural content, leaving behind negligible carbon footprint ❑ Packaged in ocean recycled plastic, a 1st in the Indian Paint industry ❑ Available with its ecosystem - Primer & Putty, e
Slide 10: Royale Designer Palette
ROYALE Designer Palette
Slide 11: Recently Launched Media Campaigns & Initiatives to Propel Growth
Recently Launched Media Campaigns & Initiatives to Propel Growth 10
Slide 12: Recently Launched Digital Campaigns
Recently Launched Digital Campaigns - Bonding us with our Customers 11
Slide 13: Honoring the Grit & Dedication of our Contractors
Honoring the Grit & Dedication of our Contractors For the 4th year through 12
Slide 14: Strong Start to the Festive Season
Strong Start to the Festive Season Special Puja tram to trundle between Tollygunge & Ballygunge A Tribute to West Bengal - Celebrating creativity, traditions & spirit of Durga Pujo with Sharad Shamman 13
Slide 15: No. 1 in Decorative Lighting
O No. 1 Integrated U Home Décor R No. 1 in Player Decorative ~ 4% of H Lighting Decorative O 50 Beautiful Revenue M Homes Stores – E One Stop Home Décor D No. 2 in Fabric Destinations No. 1 in E & Furnishing Wallcovering & C Textures O Collaborations R with Sabhyasachi, Jaipur Rugs, Sarita F Handa,
Slide 16: Ador Wallcoverings Collection
Ador Wallcoverings Collection 15
Slide 17: Our New Painted Forest Wallpaper Collection
Our New Painted Forest Wallpaper Collection A Nilaya and Tilla Studio Collaboration. Tilla, established by clothing designer Aratrik Dev Varman, 16 celebrates handmade Indian textiles & innovative craftsmanship
Slide 18: Kitchen & Bath Business Impacted by Weak Consumer Sentiment
Kitchen & Bath Business Impacted by Weak Consumer Sentiment Kitchen Business 15% Home Décor Business ❑ De-growth of 18% over last year which had high 193 Q2 FY24 H1 FY24 base on price increases 18% ❑ Focus on building a strong foothold in economy 97 price point kitchens -3 -5 ❑ Breakeven at PBDIT le
Slide 19: White Teak & Weatherseal – Well Integrated into Home Décor Journey
White Teak & Weatherseal – Well Integrated into our Home Décor Journey White Teak (Offering Decorative & Designer Lights) Home Décor Business ❑ Net Sales of Rs. 26.1 crs in Q2 with 8.5% growth ❑ Expanding store network and increasing traction across Beautiful Homes Weatherseal (uPVC Windows and Door
Slide 20: International Business
International Business Nepal Bangladesh Solomon Islands Indonesia Vanuatu Bahrain Fiji @ o Qatar Egypt Oman °@ HAE Sri Lanka ad Ethiopia Samoa 2 Opwamar’ 3 Spasianpaints 4 eaoisco 5 scibG © 7 Sapco 19
Slide 21: Macro-Economic Challenges in Key Markets
Macro-Economic Challenges in Key Markets Revenue International Business ❑ De-growth of 3.9% in INR terms; constant currency Q2 FY'24 H1 FY'24 3% growth of 1.9% 4% 1,470 17% ▪ All regions in Middle East did well with double-digit 17% 16% growth in this geography 4% 12% 775 17% 4% ▪ Sri Lanka business
Slide 22: Industrial Business: Maintaining Strong Growth Trajectory
Maintaining Strong Growth Trajectory PPGAP 9% Q2 FY24 H1 FY24 Industrial Business ❑ OEM revenue growth in line with Automotive industry 967 6% ❑ Refinish business continues to do well 495 79% 36% ❑ Focused customer mix & moderating raw material 159 prices led to improvement in margins 77 Revenue PBT
Slide 23: Moderating Raw Material Prices Driving Gross Margins to Ten Quarter High
Moderating Raw Material Prices coupled with Operational Efficiencies driving Gross Margins to Ten Quarter High Material Inflation Material Inflation Material Inflation Material Inflation ~6% ~4% Material Inflation ~6% ~2% Material Deflation Material Deflation Material Deflation Material Deflation Pr
Slide 24: Summary Standalone Financials
Summary Standalone Financials Q2 Q2 FY24 Q2 FY23 ❑ Net Sales flat due to erratic monsoon season & weak consumer sentiment 7,316 ❑ 830 bps improvement in Gross Margin to 43.9%, a 10 23% 42% 52% 3,212 52% quarter high driven by moderating raw material prices 1,585 1,551 1,160 coupled with operational
Slide 25: Summary Consolidated Financials
Summary Consolidated Financials Q2 ❑ Net Sales flat; impacted by performance in Global & Kitchen Business Q2 FY24 Q2 FY23 ❑ 770 bps improvement in Gross Margin to 43.2%; 8,452 strengthened by improvement in profitability of the 22% 40% Industrial businesses 3,650 53% 51% 1,716 1,651 1,232 ❑ PBDIT Ma
Slide 26: Dividend Distribution
Dividend Distribution FY 2023-24 Interim Dividend Rs. 515% (Rs. 5.15 per share) Interim Dividend 440% (Rs. 4.40) FY 2022-23 Final Dividend 2125% (Rs. 21.25) Total Dividend 2565% (Rs. 25.65) Payout Ratio : 60% 25
Slide 27: Outlook for FY2024
Outlook for FY2024 ❑ Extended festive, marriage season bodes well for peak season demand ▪ Industry confident of recovering from subdued offtake seen in the first half of the year ❑ Monsoons, though uneven and despite the El-Nino impact, were only marginally ‘below normal’ and should augur well for
Slide 28: Doing Business the Right Way – Sustainability at the Core
Doing Business the Right Way – Sustainability at the Core 5.2x 15% 3.8x 4.0x 6.0x 15% 30% 60% Fresh Water % Recycled Material Replenishment in Packing 67% 80% 63% 75% 100% Reduction in Specific 70% 81% 83% Hazardous Waste/KL % Renewable Electricity Finished Product (kg/KL) 80% 1.6 Beneficiaries of 3
Slide 29: Thank You
Continuing our Work of Democratizing Décor Nochikuppam, situated at the end of Marina beach in Chennai, houses more than a thousand of their fisherfolk community. Artists from around the world came here to create the “Nochi Art District” & tell us their stories. THANK YOU 28