Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q1 FY2025 Earnings Presentation
23 slides from Asian Paints's earnings presentation, Jul 17, 2024
Slide 1: Intimation under Regulation 30 - Investor Presentation
APL/SEC/32/2024-25/20 17th July 2024 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: Intimation
Slide 2: Investor Conference Q1 - FY2025 Results
ce asianpaints Investor Conference Q1 - FY2025 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) - Healthy Volume Growth for the Quarter
Healthy Volume Growth for the Quarter Value impacted by Price Reductions & Higher Growth in Economy Range Good Traction in Automotive Coatings Segment in Industrial Business Decorative Business (India) Decorative Plus Industrial 5 Yr CGR 15.3% 5 Yr CGR 12.7% 5 Yr CGR 15.1% 5 Yr CGR 12.6% 10% 10% 8.5
Slide 6: Decorative Business (India) - Double-Digit Volume Growth Trajectory
Resilient Double – Digit Volume Growth Trajectory on 5 Year Compounded Growth Rate Basis Decorative Business (India) *14.1% *15.3% 240 *18.1% *15.1% *14.6% *19.0% *16.5% *16.8% *15.4% 200 160 120 80 40 - Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25
Slide 7: Decorative Business (India) - Leading Growth Indicators
Leading Growth Indicators ❑ Q1 demand impacted by heatwave, general ❑ Sustained strong demand for Beautiful Homes elections Painting Service & Trusted Contractor Service Decorative Business (India) ▪ June month saw good demand recovery ▪ Exponential growth over last year ▪ Early signs of green shoot
Slide 8: NeoBharat - Nurturing Aspirations of Progressive Bharat
NeoBharat - Nurturing Aspirations of Progressive Bharat Har Ghar Khelega, Har Ghar Khilega | Colours of Progress ❑ Penetrating the unorganized space and ‘bottom of the pyramid’ segment with a branded solution which is smart, affordable & accessible to consumers ❑ Launched in both – Interior & Exteri
Slide 9: Parivaar AP Ka
“Parivaar AP Ka” A Series Showcasing our relationships with our Dealer Partners Dehradun, Uttarakhand Kanpur, Uttar Pradesh One of the 1st dealers to embrace the Colour Industry stalwart & valuable contributor to World concept by us our growth Bengaluru, Karnataka Four-decade long partnership solidi
Slide 10: Woodtech Emporio – Ultra Luxury Wood Finish
Woodtech Emporio – Ultra Luxury Wood Finish Launched “Into the Grain” a new digital series – 1st of its kind, shining the spotlight on architects, designers across India highlighting innovative and aesthetic projects that celebrate wood as the primary material 9
Slide 11: Our Home Décor Foray
Our Home Décor Foray No. 1 Integrated Home Décor Modular Kitchen, Kitchen No. 1 in Player ~ 4% of Hardware & Components Bath Fittings & Sanitaryware Fabrics & Furnishings Decorative Decorative Lighting 61 Beautiful Revenue Homes Stores / Studio – One Stop Home Décor Wardrobes and Vanities Furniture
Slide 12: 2024 Collection of Fabrics & Wallcoverings
2024 Collection of Fabrics & Wallcoverings 11
Slide 13: Beautiful Homes Studio – the Next Frontier of our Home Décor Journey
Beautiful Homes Studio – the Next Frontier of our Home Décor Journey 2nd BH Studio launched in Guwahati, Spanning over 16,000 square feet 12
Slide 14: Home Décor Business: Kitchen & Bath
Kitchen & Bath: Successfully Collaborating with our Beautiful Homes Network Q1 FY24 Q1 FY25 Kitchen Business ❑ ~5% growth in revenue; Seeing pick up in sales over past 2 Home Décor Business quarters ▪ Benefits of expanding reach through BH network 5% 96 100 ❑ Strong focus on driving operational effi
Slide 15: White Teak & Weatherseal – Reaping Benefit from Network Synergies
White Teak & Weatherseal – Reaping Benefit from Network Synergies White Teak (Offering Decorative & Designer Lights) Home Décor Business ❑ Net Sales of Rs. 30 crs in Q1 with 14% growth Weatherseal (uPVC Windows and Doors) ❑ Net Sales of Rs. 12 crs in Q1 with 18% growth Growth from extended product o
Slide 16: International Business
Nepal FB Bangladesh a) a Solomon a Islands c Indonesia n 2 s Vanuatu Bahrain 5 ss e Fiji Ce E t Qatar! e oO gyp Oman 2 « Sed = oO c UAE Sri Lanka eS . Ethiopia Samoa 2 Sporianpaints| 3 Sppasianpaints|/ 4 KADISCO| 5 scibG | 6 7 Sapco
Slide 17: International Business: Business Environment Impacted by External Factors
Business Environment Impacted by External Factors ❑ Q1 de-growth of ~2% in INR terms; constant currency -2% Revenue 679 growth of 1.8% International Business 695 ▪ Strong growth in Ethiopia (relatively better forex -7% availability) and Sri Lanka (economic conditions picking up) 2% -7% 254 255 ▪ Slo
Slide 18: Industrial Business: Strengthening our Base
Industrial Business: Strengthening our Base Q1 FY24 Q1 FY25 PPGAP 10% 472 517 ❑ Double-digit revenue growth benefiting from growth in Automotive & General Industrial segment Industrial Business 21% ❑ Moderating raw material prices and improved 82 99 operating efficiencies led to improvement in margi
Slide 19: Moderation in Gross Margins on Material Price Inflation & Lower Mix
Moderation in Gross Margins on Material Price Inflation & Lower Mix Sourcing & Formulation Efficiencies Sustained Implemented price increase of ~1% in July Material Inflation Material Inflation Material Deflation Material Deflation ~6% ~2% Material Deflation Material Deflation Material Deflation Mat
Slide 20: Summary Financials
Summary Financials Standalone Financials Q1 FY24 Q1 FY25 ❑ Net Sales de-growth of ~3% driven by price cuts & shift in -3% mix 7,853 ❑ Gross margins at 42.9% in Q1; 50 bps decline over Q1 last -4% -20% -21% year – impact of material price inflation -21% 3,368 1,593 1,592 1,192 ❑ PBDIT margin at 20.3%
Slide 21: Near & Medium Sustainability Targets & Progress
Near & Medium Sustainability Targets & Progress 3.8x 3.9x 4.0x 6.0x 6.4% 7.2% 30% Fresh Water Renewable/bio-based 20% Replenishment Raw Materials in Products (%) Reduction in Specific 70% 81% 83% 62% 66% 75% 100% 77% Hazardous Waste/KL % Renewable Electricity Finished Product (kg/KL) 78% 80% 79% 81%
Slide 22: Outlook for FY25
Outlook for FY25 ❑ Confident about improving demand conditions: ▪ Green shoots seen in rural markets ▪ Expected progression of monsoon to support this uptick ▪ Upcoming festive season augurs well for peak season demand ❑ Post elections, growth momentum from Government investments expected to continu
Slide 23: Thank You
In collaboration with St+art India, murals painted by artists at Rajkumari Ratnavati Girls’ School in Jaisalmer THANK YOU 22