Berger Paints India Limited · NSE:BERGEPAINT
Berger Paints India — Q4 FY23 Earnings Presentation
35 slides from Berger Paints India's earnings presentation, May 15, 2023
Slide 1: Stock exchange cover letter for Q4 FY23 presentation
STOCK. EXG/ AG/ 2023-24 15th May, 2023 The Corporate Relationship The Listing Department Listing Department Department National Stock Exchange of The Calcutta Stock BSE Limited, India Limited Exchange Ltd. 1st Floor, Exchange Plaza, 5th Floor, 7 Lyons Range, Phiroze Jeejeebhoy Towers, Plot No.-C/1,
Slide 2: Earnings Update Call, Q4 FY23
Berger Paints India Limited Earnings Update Call, Q4 FY23 May 15, 2023
Slide 3: FY23 Performance
FY23 Performance
Slide 4: FY23: Delivering results
FY23 : Delivering results • Company recorded a strong performance in the year Consolidated Topline crossed Rs 10000 crs 1923 - 2023 India Operations Topline almost touched Rs 10000 crs Company gained Market Share in FY23. Standalone Turnover growth : 22.3% Consolidated Turnover growth : 20
Slide 5: FY23: Delivering results
FY23 : Delivering results Double digit operating profit growth : 13.8% in Standalone & 11.7% on Consolidated business Company added around 8000+ retail touchpoints in FY23 Installed 5200+ Colorbank machines 1923 - 2023 Protective Coatings business itself crossed Rs 1000 cr - We are market lead
Slide 6: Consistent Growth
Consistent Growth Volume Sales Growth % 20.4 3Yrs Compounded Growth 16.6 % 15.5 FY22 FY23 Value Sales Growth% 3Yrs Compounded 28.6 Growth 18.5 % 22.3 FY22 FY23
Slide 7: Growth (%) - Standalone FY23
GROWTH (%) - Standalone FY23 22.3 13.8 13.4 10.5 9.7 Total income from PBDIT (Excluding PBIT PBT PAT operations Other Income)
Slide 8: Financial Results – Standalone FY23
Financial Results – Standalone FY23 Rs Crores YTD % to Total YTD % to Total FY 22 Income FY 23 Income Growth % Total income from operations 7,740.93 9,470.62 22.3 Material Cost 4,846.09 62.6 6,087.12 64.3 Employee Cost 400.58 5.2 458.12 4.8 Other expenses 1,311.73 16.9 1,579.53 16.7 PBDIT (Excluding
Slide 9: Growth (%) - Consolidated FY23
GROWTH (%) - Consolidated FY23 20.6 11.7 9.0 3.6 3.3 Total income from PBDIT (Excluding PBIT PBT PAT operations Other Income)
Slide 10: Financial Results - Consolidated: FY23
Financial Results- Consolidated: FY23 Rs Crores % to Total % to Total YTD FY 22 Income YTD FY 23 Income Growth % Total income from operations 8,761.78 10,567.84 20.6 Material Cost 5,429.07 62.0 6,730.52 63.7 Employee Cost 543.12 6.2 609.19 5.8 Other expenses 1,458.52 16.6 1,740.93 16.5 PBDIT (Exclud
Slide 11: Scaling up for success
Scaling up for success o Present capacity - 95000 MT o Biggest Plant went on commercial production in February 2023 (33000 MT) – will manufacture products across all categories – Presently capacity utilization between 40% to 50% o Some capacity additions in existing plants but no further green field
Slide 12: Q4 FY23 Performance
Q4 FY23 Performance
Slide 13: Quarterly Growth
Quarterly Growth Volume Sales Growth% 3Yrs Compounded 11.1 Growth 19.4 % 1.7 Q4 FY22 Q4 FY23 Values Sales Growth% 3Yrs Compounded 13.6 Growth 23.1 % 7.3 Q4 FY22 Q4 FY23
Slide 14: Decorative Business
Decorative Business Decorative business showed healthy double digit 1 volume and value growth both in excess of 14% for the quarter in-spite of an inflationary environment aided by some mix improvement Construction Chemical segment also recorded a 2 robust growth for the quarter Several new products
Slide 15: Innovating for success: New Product launches
Innovating for success : New Product launches
Slide 16: Trendz Filament, Metallic and Hammered Pearl Finishes
Trendz Filament Finish Trendz Metallic Finishes Trendz Hammered Pearl Finish
Slide 17: Slide 17
Slide 18: Media Campaign
Media Campaign
Slide 19: Industrial Business: Q4FY23
Industrial Business : Q4FY23 Automotive General Industrial business had business also another quarter of recorded a double good growth aided digit growth for by increased price the quarter. realization. Protective and Powder Coatings infrastructure business line had business had significant another
Slide 20: On the rise: Gross Margin (%) - Standalone
On the rise : Gross Margin (%) - Standalone 39.6 38.3 37.9 37.7 36.0 35.3 34.5 33.8 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
Slide 21: Making progress: PBDIT (%) - Standalone
Making progress : PBDIT (%) - Standalone 16.3 15.7 15.6 15.2 15.0 13.6 13.4 12.9 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
Slide 22: Profitability Analysis: Q4FY23
Profitability Analysis : Q4FY23 • Gross margins showed improvement over corresponding quarter last year and sequentially on the back of lower raw material prices 9.0 • Operating margin percentage over corresponding quarter last year were impacted by - Higher Advertisement expenses 3.8 Overhead a
Slide 23: Profitability Analysis: Q4FY23
Profitability Analysis : Q4FY23 • Operating margin excluding other income however showed an improvement of 270 bps sequentially 15.6 12.9 • We expect gross margin to hold at the same level going forward • Operating margins are expected to improve in Q1FY24 • PAT has been lower over corresponding qua
Slide 24: Improving financial health: Debt Position
Improving financial health : Debt Position Net debt (Rs Crs) Net debt went up significantly during the year primarily on account of 1008 • Large Capital expenditure for capacity expansion • High stock holding in a rising cost scenario 610 • However substantial reduction of Net debt was seen in the q
Slide 25: Growth (%) - Standalone Q4 FY23
GROWTH (%) - Standalone Q4 FY23 13.6 9.0 2.6 Total income from PBDIT (Excluding PBIT PBT PAT operations Other Income) -2.5 -3.2
Slide 26: Financial Results – Standalone Q4 FY23
Financial Results – Standalone Q4 FY23 Rs Crores % to Total % to Total Q4 FY 22 Income Q4 FY 23 Income Growth % Total income from operations 1927.83 2,189.29 13.6 Material Cost 1,190.26 61.7 1,321.30 60.4 Employee Cost 98.32 5.1 115.40 5.3 Other expenses 325.09 16.9 410.05 18.7 PBDIT (Excluding Othe
Slide 27: Income from operations Growth Trend – Standalone
Income from operations Growth Trend – Standalone (%) 96.0 53.7 26.1 21.2 22.5 13.6 7.3 7.2 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23
Slide 28: Growth (%) - Consolidated Q4 FY23
GROWTH (%) - Consolidated Q4 FY23 11.7 6.4 1.2 Total income from PBDIT (Excluding PBIT PBT PAT operations Other Income) -13.0 -15.6
Slide 29: Financial Results - Consolidated: Q4 FY23
Financial Results- Consolidated: Q4 FY23 Rs Crores % to Total % to Total Q4 FY 22 Income Q4 FY 23 Income Growth % Total income from operations 2,187.51 2,443.63 11.7 Material Cost 1,336.40 61.1 1,470.18 60.2 Employee Cost 134.13 6.1 154.69 6.3 Other expenses 370.54 16.9 450.00 18.4 PBDIT (Excluding
Slide 30: Income from operations Growth Trend – Consolidated
Income from operations Growth Trend – Consolidated (%) 93.2 53.4 27.7 20.4 20 11.7 8.0 5.6 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23
Slide 31: Performance - Consolidated: Q4 FY23
Performance - Consolidated: Q4 FY23 Company’s subsidiary, STP Ltd showed robust top line and profitability growth aided by higher gross margin and reduction in overheads SBL Specialty Coatings Ltd even though had a marginal degrowth in the topline, showed improvement in profitability Company’s
Slide 32: FY24: Strategising for growth
FY24 : Strategising for growth • Build on existing strength & work on fundamentals Network Expansion - Company has approximately 40000 retailers • - Plan to add 8000 retail touchpoints in FY24 • Several innovative products introduced over the years Product Innovation and some more in pipeline Inc
Slide 33: Investing in a sustainable future: ESG Initiative
Investing in a sustainable future : ESG Initiative Workplace health and safety Employee wellness Adoption of green initiatives technology – Low VOC Workmen compensation Reduction of Carbon policy footprint – Environment Social Encouraging local Solar/Biofuels employment Waste reduction
Slide 34: Confident outlook for the business
Confident outlook for the business • Company expects to continue its double digit growth in decorative business in the coming quarter as the demand outlook remains good in view of lower inflation and prediction of normal monsoon • Industrial sales outlook remain strong on the back of upturn in auto
Slide 35: Disclaimer
Disclaimer This presentation has been prepared by Berger Paints India Limited for information purposes only. The forward looking statements, if any, involve risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the statements.