Shalimar Paints Ltd · NSE:SHALPAINTS
Shalimar Paints — Q3 FY2022 Earnings Presentation
26 slides from Shalimar Paints's earnings presentation, Feb 17, 2022
Slide 1: Intimation of Investor's Presentation
SHALIMAR PAINTS February 17, 2022 BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5" Floor, 1* Floor, New Trading Ring, Plot No. C/1, G- Block Rotunda Building, P.J. Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai - 400 001 Mum
Slide 2: Shalimar Paints Limited Investor Presentation
Shalimar Paints Limited Investor Presentation February 2022
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shalimar Paints Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Vision Mission
1902 Vision Mission To persevere and excel as one of the To maximise shareholder value by Two Britishers A.N. Turner and premier paint companies of the country, a engaging and growing our employees, A.N. Wright - set up Colour & Varnish leader in product innovation and customer delivering innovative
Slide 5: Company Overview
Company Overview 100-Year-Young Brand: Renowned for High product quality India’s iconic structures continue to use Shalimar Paints 100+ years of 69,000+ KL 3 30+ establishment Manufacturing facilities Depots Production Per annum India’s Oldest Brand The “Art & Science” of Paints 5,300+ 2 Strong Pres
Slide 6: Journey so far
Journey so far Shalimar Paints Colour & P. Johnson bought control, Became a public limited Name changed to Varnish Co. incorporated in became part of Red Hand company on 27th May Shalimar Paints Ltd on India Composition 18th Sep 1902 1928 1961 1963 Acquires the American Nasik Plant Sold to Jhunjhnuw
Slide 7: Deal with Infra.Market
Deal with Infra.Market Backed by investors including Accel, Nexus Venture Partners, Evolvence India Fund, Sistema Asia Fund and Foundamental Gmb and Tiger Global Shalimar Paints are at the inflection point of exponential growth and partnering The association with Shalimar is an important step as pai
Slide 8: Our Product Offerings
Our Product Offerings Decorative Paints Industrial Paints • An extensive range of decorative and protective paint products for • Pioneers in Industrial coatings - Introduced notable firsts in high interior and exterior segments performance coatings such as high-build zinc coatings, radiation resista
Slide 9: Decorative Paints: Strategy Going Ahead
Decorative Paints: Strategy Going Ahead Progress over last a year Focus on areas having significant presence ✓ Cost Reduction: • Cost saving due to optimization of water & solvent- based paints Focus on smaller Tier 3 & 4 towns Expert Program and rural area ✓ New Product Development: Increase in no.
Slide 10: Industrial Paints: Strategy Going Ahead
Industrial Paints: Strategy Going Ahead • From Zonal Business structure to Vertical • Create opportunities for growth of Team Market Expansion business structure alignment Leaders to take additional responsibilities • Each Vertical defined with visible Key • Upskilling the talent pool by proper Resu
Slide 11: Historical Financial Performance
Historical Financial Performance Steady Revenue growth in both the segments in Unfortunate fire incident at our plants led to loss of capacity Corrective actions initiated led to Business this period eventually resulting in declining revenues revival until Covid-19 disruptions Mar-14 Fire incident a
Slide 12: Improved supply chain management
Improved supply chain management Finished Goods Cost Management Customer Services o Used simple forecasting model to plan to produce finished goods o High Supply Chain management cost o Poor Order Management Challenges o Distribution done through conventional o Dealing with multiple service producer
Slide 13: Other Expenses
Positive outcome on financial performance 96.7 Cost Optimization Strategies Other Expenses 86.8 57.0 62.5 ✓ Improve Supply / RM Chain Management ✓ Improve the Product Supply to Channel partners ✓ Increase efficiencies at Depots FY18 FY19 FY20 FY21 ✓ Reduce overall company related costs 3.6 Value Cre
Slide 14: 360o growth strategy: started yielding results
360o growth strategy: started yielding results EBITDA (Rs. Crs) Working Capital (No. of days) 3.6 61 51 Reduction in Operating Profit Working Capital Turns Positive requirements -33.9 FY20 FY21 FY20 FY21 Other Exp. Cashflow from (% to Revenue) Operating activities (Rs. Crs) 28.1% 15.8 Improving 19.2
Slide 15: Strategy Going Ahead – Product Diversification
Strategy Going Ahead – Product Diversification “Launching of newer products as per the market demand & continuously improving the serviceability” Shalimar Alkali Block Xtra Tough Anti Seal-Proof Pearl Lustre Exterior Wall Primer Carbonation Coating • Specially formulated premium quality • Xtra Tough
Slide 16: Profit & Loss Statement Q3-FY22
Profit & Loss Statement Q3-FY22 Particulars Q3FY22 Q3FY21 Q2FY22 • Revenue: Revenue from Operations 96.5 92.5 90.9 o Company has reported revenue growth of 4% in the quarter from Q3 FY21. Cost of Materials Consumed 69.9 59.0 63.0 Despite the lean season in the North, the company has recorded growth
Slide 17: Business Segment Performance
Business Segment Performance Decorative Paints Industrial Paints Total Revenues* (Rs. Crs.) Revenues* (Rs. Crs.) Revenues* (Rs. Crs.) 300 138 130 438 246 111 119 376 356 237 317 215 206 99 314 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Volumes (in KL ‘000) Volumes (in
Slide 18: Historical Profit & Loss Statement
Historical Profit & Loss Statement Particulars FY21 FY20 FY19 FY18 FY17 Revenue from Operations 325.6 343.9 287.6 271.2 349.8 Cost of Materials Consumed 198.4 243.5 213.2 193.1 208.5 Purchase of Traded Goods 21.9 0.0 0.0 0.0 0.0 Changes in Inventories of Finished Goods and Work in Progress 2.4 -11.2
Slide 19: Balance Sheet (Assets)
Balance Sheet (Assets) Balance Sheet - ASSETS Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Property, Plant and Equipment 278.4 288.3 245.7 249.6 221.7 Right of Use Assets 0.3 0.8 0.0 0.0 0.0 Capital Work-in-progress 0.4 0.1 23.6 0.7 13.74 Intangible Assets 4.6 5.5 - - - Financial Assets (i) Loans 1.5 1.7 (ii)
Slide 20: Balance Sheet (Equity & Liabilities)
Balance Sheet (Equity & Liabilities) Balance Sheet - EQUITY & LIABILITIES Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Equity Share Capital 10.9 10.9 11.0 4.1 4.2 Other Equity 212.2 262.0 294.3 134.0 179.7 Total Equity 223.1 272.9 305.3 138.1 183.8 Financial Liabilities (i) Borrowings 24.1 18.2 18.1 24.9 23.7
Slide 21: Cashflow Statement
Cashflow Statement Cash Flow Statement Mar-21 Mar-20 Mar-19 Mar-18 Mar-17 Cash Flow from Operating Activities Profit before Tax (23.8) (56.16) (109.18) (67.37) (15.21) Adjustment for Non-Operating Items 32.2 56.6 72.6 33.7 30.9 Operating Profit before Working Capital Changes 8.5 0.4 (36.6) (33.7) 15
Slide 22: Balance Sheet Strength
Balance Sheet Strength Borrowings & Cash Balance Debt to Equity Net Debt to Equity Borrowings Cash & Cash Equivalents 1.3 1.1 175 161 0.8 145 0.9 121 131 91 0.6 0.5 0.5 0.4 0.4 0.2 15 19 8 5 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Work
Slide 23: Brand Campaigning Initiatives
Brand Campaigning Initiatives Shalimar has carried out various marketing campaigns from time to time to capture greater mind share of customers and generate pull effect for the brand Focus on strengthening legacy ‘Shalimar Paints’ Brand 22
Slide 24: CSR Initiatives
CSR Initiatives 14 wall arts Click here to watch video More than 8000sq.ft. painted Support from 15 National & Launched Kahaani Project 4 International organisations • Campaign aimed at beautifying and uplifting the village of Tauli Bhud Artists from 7 different located in Dehradun, Uttarakhand coun
Slide 25: Rang Badlaav Ke
CSR Initiatives RANG BADLAAV KE 3000+ homes painted 1000+ graffiti’s 2000+ volunteers from 80+ colleges 30+ corporates and citizens from 20+ countries countless smiles and endless memories…. 24
Slide 26: Thank You
Thank You Company : Investor Relations Advisors : Shalimar Paints Limited Orient Capital (a division of Link Group) CIN: L24222HR1902PLC065611 Mr. Rajesh Agrawal +91 99674 91495 Mr. Mohit Kumar Donter – Chief Financial Officer rajesh.agrawal@linkintime.co.in Ms. Rasika Sawant: mohit.donter@shalimarp