Indigo Paints Ltd · NSE:INDIGOPNTS
Indigo Paints — Q3 FY25 Earnings Presentation
29 slides from Indigo Paints's earnings presentation, Feb 10, 2025
Slide 1: Investor Presentation (Q3 & 9M FY25)
INDIGO Paints Ltd Investor Presentation (Q3 & 9M FY25)
Slide 2: Disclaimer
Disclaimer Certain statements and opinions with respect to the anticipated future performance of Indigo Paints Ltd (“Indigo”) in the presentation (“for ward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to b
Slide 3: Contents
Contents Financial Update - Standalone (Q3 FY 25 & 9M FY 25) - Consolidated (Q3 FY 25 & 9M FY 25) KPI Growth Drivers Sustainability initiatives Outlook 3 3
Slide 4: Standalone Q3 FY25: Revenue de-growth amidst persistent demand slowdown
Fin ancial Growth u p d ate KPIs drivers Revenue de-growth amidst persistent demand slowdown.. Standalone | Q3 FY25 Rs. 327.5 Cr 47.2% 17.5% Re venue from Operations Gross Margin % EBITDA Margin % -4.0% YoY Growth EBITDA Rs. 57.3 Cr Maintaining pole position -5.9% YoY Growth 11.0% 8.2% A&P as % of R
Slide 5: Standalone 9M FY25: Revenue growth slowdown amidst demand slowdown
Fin ancial Growth u p d ate KPIs drivers Revenue growth slowdown amidst persistent demand slowdown.. Standalone | 9M FY25 Rs. 910.0 Cr 46.1% 16.0% Re venue from Operations Gross Margin % EBITDA Margin % 2.4% YoY Growth EBITDA Rs. 145.7 Cr Maintaining pole position -3.1% YoY Growth 9.4% 7.0% A&P as %
Slide 6: Moderate margin reduction despite muted growth (Standalone)
Fin ancial Growth u p d ate KPIs drivers Moderate margin reduction despite muted growth Standalone 6
Slide 7: Financial Analysis
Fin ancial Growth u p d ate KPIs drivers Financial Analysis 1 2 Despite tough 3 4 5 6 Company’s topline The A&P expense The EBITDA% for The PAT% for the The PAT% for the 9M de grew by 4% market conditions, as a % of revenue the quarter was quarter marginally FY25 was at 9.4% as mirroring the we cont
Slide 8: Contents
Contents Financial Update - Standalone (Q3 FY 25 & 9M FY 25) - Consolidated (Q3 FY 25 & 9M FY 25) KPI Growth Drivers Sustainability initiatives Outlook 8 8
Slide 9: Moderate margin reduction despite muted growth (Consolidated)
Fin ancial Growth u p d ate KPIs drivers Moderate margin reduction despite muted growth C onsolidated 9
Slide 10: Consistently outpacing industry growth for last 7 quarters
Fin ancial Growth u p d ate KPIs drivers Consistently outpacing industry growth for last 7 quarters Indigo Paints Industry 30.0% 28.8% 25.8% 25.0% 20.0% 18.3% 15.0% 15.0% 10.0% 7.8% 7.1% 7.4% 5.6% 5.0% 1.2% 0.6% 0.1% -3.2% 0.0% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 -1.6% -5.0% -4.4% Sourc
Slide 11: Maintaining pole position in terms of Gross Margin%
Fin ancial Growth u p d ate KPIs drivers Maintaining pole position in terms of Gross Margin% Indigo Paints Paint companies' average 48.2% 48.9% 47.3% 46.6% 46.6% 45.6% 41.9% 43.7% 41.2% 42.2% 42.0% 41.9% 39.8% 41.1% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Source: Leading Paints company data
Slide 12: Financial snapshot for last 5 years
Fin ancial Growth u p d ate KPIs drivers Financial snapshot for last 5 years Sales (INR Cr) EBITDA (INR Cr) 1,306.1 2 7 .2 % 238.1 1,073.3 906.0 953.1 181.5 723.3 136.0 146.1 624.8 122.5 91.0 FY20 FY21 FY22 FY23 FY24 9M FY20 FY21 FY22 FY23 FY24 9M FY25 FY25 PAT (INR Cr) RoCE (%) 34.3 3 2 .82% 148.8
Slide 13: Contents
Contents Financial Update - Standalone (Q3 FY 25 & 9M FY 25) - Consolidated (Q3 FY 25 & 9M FY 25) KPI Growth Drivers Sustainability initiatives Outlook 13 13
Slide 14: Product category snapshot for Q3 FY25
Financial KPIs Growth update drivers Product category snapshot for Q3 FY25 YoY growth for Q3 FY25 vs. Q3 FY24 Product Value growth (%) Volume growth (%) Putty + Cement Paints -5.3% -7.2% Emulsions 2.8% 1.7% Enamels and wood coatings -11.5% -12.6% Primers + Distempers + -0.6% -6.0% Others 14
Slide 15: Continued network expansion
Financial KPIs Growth update drivers Continued network expansion Ac tive dealers and depots (#) # of depots 47 47 49 51 53 53 53 54 54 • Tinting machines deployed at over 10,700 outlets Active Tinting 7,978 8,273 8,657 9,114 9,510 9,842 10,210 10,555 10,772 m/c 18,718 18,598 18,500 18,105 17,745 17,
Slide 16: Contents
Contents Financial Update - Standalone (Q3 FY 25 & 9M FY 25) - Consolidated (Q3 FY 25 & 9M FY 25) KPI Growth Drivers Sustainability initiatives Outlook 16 16
Slide 17: Future growth drivers – Indigo Paints 2.0 Strategy
Financial G ro wth KPIs d riv ers update Future growth drivers – Indigo Paints 2.0 Strategy V. Expansion into ad jacencies IV. Brand • Expand into non decorative segment. & marketing focus Foray into adjacencies like construction chemicals & III. Capacity • Ramp up salesforce waterproofing. augmenta
Slide 18: Geographical Expansion | Deepening our Network
Financial G ro wth KPIs d riv ers update Geographical Expansion | Deepening our Network 5 Manufacturing plants 28 States 54 Depots 18,598 Active dealers 10,772 Tinting machines Fortifying our presence in Tier 3,4 cities and fast growing in Tier 1,2 cities 18
Slide 19: Capacity Augmentation | Expansion Progress
Financial G ro wth KPIs d riv ers update Capacity Augmentation | Expansion Progress Jo d hpur Upc oming Plant at Jodhpur • Erection work progressing in full pace at the water based plant with capacity of 90,000 KLPA. Expect commissioning by Q3 FY26 • Erection and installation work progressing at the
Slide 20: Brand Focus | Consistent focus to build a pan-India brand
Financial G ro wth KPIs d riv ers update Brand Focus | Consistent focus to build a pan-India brand Advertising & Promotional Spends (INR Cr) As % r evenue 12.63% 12.65% 10.65% 9.72% 7.70% 7.36% 7.0% 92.32 88.06 82.7 79.05 77.06 67.66 63.58 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 9M FY 25 • Continue to p
Slide 21: Marketing Focus | Enhancing Digital Outreach & New Advertisements
Financial G ro wth KPIs d riv ers update Marketing Focus | Enhancing Digital Outreach & New Advertisements 21
Slide 22: Apple Chemie | Rapid growth, but adverse sales mix impacted profitability
Financial G ro wth KPIs d riv ers update Apple Chemie | Rapid growth, but adverse sales mix impacted profitability • Indigo Paints acquired 51% of Apple Chemie to foray into construction chemicals & water proofing segment (WPCC) Revenue (INR Cr) • WPCC products for retail channel launched and market
Slide 23: Contents
Contents Financial Update - Standalone (Q3 FY 25 & 9M FY 25) - Consolidated (Q3 FY 25 & 9M FY 25) KPI Growth Drivers Sustainability initiatives Outlook 23 23
Slide 24: ESG Updates
ESG Updates Transitioning to renewable Community energy Service - Final stages of commissioning of 330 kW -Unique initiative involving Painters in of solar panels at Kochi Factory “Community service” to undertake painting of Government schools in Tier 2/3 towns 24
Slide 25: ESG Updates | Community Development Initiative
ESG Updates | Community Development Initiative 25
Slide 26: CSR
CSR Education of Healthcare for the Health Benefit for the underprivileged girls underprivileged Painter Community Continuing to provide Extending the health Extending education healthcare for the benefit program for the assistance & career guidance underprivileged through painter community to 18 pr
Slide 27: Contents
Contents Financial Update - Standalone (Q3 FY 25 & 9M FY 25) - Consolidated (Q3 FY 25 & 9M FY 25) KPI Growth Drivers Sustainability initiatives Outlook 27 27
Slide 28: Outlook
Outlook 1 2 3 4 5 The A&P expense EBITDA margins Margin Anticipating Expecting the for the entire fiscal for the Q4 FY25 improvement breakout from the margins to expand is expected to expected to anticipated in year long demand with the higher decline marginally improve Apple Chemie slowdown in the
Slide 29: Thank You
Ny INDIGO Be surpreed! Thank You 29