Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Q3 FY2022-23 Earnings Presentation
20 slides from Kansai Nerolac Paints's earnings presentation, Feb 4, 2023
Slide 1: Exchange covering letter for Q3 FY2022-23 investor presentation
Page 1 of 20 4th February, 2023 1. Corporate Relationship Department 2. Manager – Listing BSE Limited, National Stock Exchange of India Ltd. PhirozeJeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, BandraKurla Complex, Bandra (E), Mumbai - 400001. Mumbai - 400051. Sub.: Q3 FY 2022-23 Fi
Slide 2: Q3 FY23 Investor Presentation
Page 2 of 20 Q3 FY23 Investor Presentation 6th February 2023
Slide 3: Business Environment, Business Update, ESG & CSR, Financial Performance
Page 3 of 20 1 Business Environment 2 Business Update 3 ESG & CSR Initiatives 4 Financial Performance All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 6th Feb 2023
Slide 4: Disclaimer
Page 4 of 20 Disclaimer This presentation may contain statements which reflect management’s current views and estimates and could be construed as forward making statements. The future involves certain risks and uncertainties that could cause actual results to differ materially from the current views
Slide 5: 1. Business Environment
Page 5 of 20 1. Business Environment All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 6th Feb 2023
Slide 6: Recap of Business Environment Q3 2022-23
Page 6 of 20 Recap of Business Environment Q3 2022-23 Geo political Challenges & Ukraine war Crude oil price Currency Depreciation Good Demand in Automotive Decorative-Extended Monsoon Investor Presentation 6th Feb 2023
Slide 7: 2. Business Update
Page 7 of 20 2. Business Update All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 6th Feb 2023
Slide 8: Marketing and Media Campaigns
Page 8 of 20 Marketing and Media Campaigns Co-Associate Sponsor for Co-Presenting Sponsorship on Star Vijay’s Art Salute Indian idol Season 22 Prime Time show Bharati Kanama. Presence in popular News Presence in Entertainment channels Website Revamp Investor Presentation 6th Feb 2023
Slide 9: Decorative Highlights
Page 9 of 20 Decorative Highlights New Product Launched in Q3 Nerolac Excel Everlast 12 Wonderwood -111 Thinner • YTD 3 % Price increase was taken • New business salience has improved quarter on quarter • In Q3 growth was impacted due to effect of extended rains, early Diwali and channel stocking du
Slide 10: Industrial Highlights
Page 10 of 20 Industrial Highlights • Demand in the Auto industry continues to be on an upward trajectory • Passenger Vehicle (PV) demand was good followed by Commercial vehicles and Tractors • Semi-conductor demand challenge remains for high-end models • Further price increase was obtained from Aut
Slide 11: 3. ESG & CSR Initiatives
Page 11 of 20 3. ESG & CSR Initiatives All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 6th Feb 2023
Slide 12: ESG - Sustainability
Page 12 of 20 ESG - Sustainability Recognition S&P KNPL has been rated in top 10% in the S&P Corporate sustainability Assessment 2022 in chemicals Category out of 400+ companies that were assessed Climate Change Management Action • Committed to science-based emission reduction (near-term) targets (S
Slide 13: Recognition and CSR – Key Highlights
Page 13 of 20 Recognition and CSR – Key Highlights Awards CSR Ambulance donated to Computers donated to Schools Painted Under the LED TV donated to Civil Hospital Dayadara School for theme of “School Rangrogan” Ramvaradayani High School Kapurthala, Goindwal “Promoting Education” Investor Presentatio
Slide 14: 4. Financial Performance
Page 14 of 20 4. Financial Performance All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 6th Feb 2023
Slide 15: Financials Standalone Q3 & YTD FY 22-23
Page 15 of 20 Financials Standalone Q3 & YTD FY 22-23 Q3 % to Q3 % to YTD % to YTD % to Rs. In Millions 2021-22 Net Sales 2022-23 Net Sales 2021-22 Net Sales 2022-23 Net Sales Net Revenue 16,937 100.0 17,171 100.0 45,361 100.0 54,759 100.0 Contribution 4,375 25.8 4,228 24.6 11,674 25.7 13,360 24.4 O
Slide 16: Financials Consolidated Q3 & YTD FY 22-23
Page 16 of 20 Financials Consolidated Q3 & YTD FY 22-23 Q3 % to Q3 % to YTD % to YTD % to Rs. In Millions 2021-22 Net Sales 2022-23 Net Sales 2021-22 Net Sales 2022-23 Net Sales Net Revenue 18,104 100.0 18,268 100.0 48,328 100.0 58,091 100.0 Contribution 4,673 25.8 4,555 24.9 12,444 25.7 14,303 24.6
Slide 17: Financial Analysis Q3 & YTD FY 22-23
Page 17 of 20 Financial Analysis Q3 & YTD FY 22-23 ❑ Positive Factors • Price increases from key OEMs d in Auto • Good demand in Automotive coatings in Industrial Profitability • Raw material prices declining • Judicious management of costs and overheads continued, raw materials prices easing off ❑
Slide 18: Subsidiaries – International and Domestic
Page 18 of 20 Subsidiaries – International Nepal Bangladesh Sri Lanka • Net sales declined significantly • Net Sales grew in double digits • Gain in Market share • Liquidity crunch, and adverse foreign • Positive EBITDA recorded in Q3 22- • Economic environment improving exchange situation affected
Slide 19: Risk and Outlook
Page 19 of 20 Risk and Outlook ❑ Risk ▪ Strengthening of USD ▪ Uncertain geopolitical conditions could be detrimental. ▪ Recession must be closely monitored ❑ Outlook ▪ Demand in Decorative expected to be healthy ▪ New business especially construction chemicals & projects are expected to grow well w
Slide 20: Thank you
Page 20 of 20 Thank you All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
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