Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q3 FY2023 Earnings Presentation
24 slides from Asian Paints's earnings presentation, Jan 19, 2023
Slide 1: Exchange filing cover letter for investor presentation
APL/SEC/32/2022-23/68 19th January, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, 25th Floor, Dalal Street, Block G, Bandra - Kurla Complex, Fort, Mumbai – 400 001 Bandra (East), Scrip Code: 500820 Mumbai – 400 051 Symbol: ASIANPAI
Slide 2: Classification: Confidential
Classification: Confidential
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! Classification: Confidential
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 ma
Slide 5: Decorative Business (India) Q3'23 and 9M'23 volume and value trend
Flat volume & value sales for the quarter despite multiple headwinds Strong Business Momentum evident from double digit 3-year compounded growth 3 Yr Comp. gr 16.0% 3 Yr Comp. gr 17.6% Decorative Business (India) 18% 27% 0% 1% Volume Gr% Value Gr% Q3 FY'22 Q3 FY'23 3 Yr Comp. gr 17.9% 3 Yr Comp. gr
Slide 6: Consistent trend of double-digit volume growth
Consistent trend of double-digit volume growth Volume Index Decorative Business (India) *20.3% *20.2% *20.1% *17.7% *16.0% 200 *15.8% *15.2% 150 100 50 - Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Quarterly representation of Volumes sold on base of Q1 FY1
Slide 7: Decorative Business (India)
Extended monsoon & shorter Diwali season coupled with a high-volume base impacted overall growth in Q3’23, especially in North, Central & West markets Tepid growth across markets - T1/T2 as well as T3/T4 centers Decorative Business (India) However, strong recovery recorded in December with dou
Slide 8: Product Introductions in Q3
Continued focus on innovation - New Product Introductions in Q3 Sparc Exterior Apex Createx Wall Primer Scratch finish TruGrip Dynamo Woodtech Advanced Purafin PU Classification: Confidential
Slide 9: Product Introductions in Q3
Continued focus on innovation - New Product Introductions in Q3 Cutting edge differentiated products launched in Waterproofing in Q3 Classification: Confidential
Slide 10: Classification: Confidential
Classification: Confidential
Slide 11: Home Décor Business
Home Décor Foray Transitioning from ‘Share of Surface’ to ‘Share of Space’ within the Homes Beautiful Home Stores – Home Décor under one roof Home Décor Business 38 stores functional now across metros, T1/T2 cities Beautiful Homes Service – Personalized Interior Design to Professional Exec
Slide 12: Home Décor Business
Home Décor Business Classification: Confidential
Slide 13: Home Décor Business
White Teak offering Decorative and Designer Lighting and Weatherseal offering uPVC Windows and Doors - gaining from the synergies Home Décor Business White Teak generated revenue of Rs 29 crs during Q3; 9M revenue of Rs 73 crs against full year revenue of Rs 58 crs last year Weatherseal - Reve
Slide 14: Home Décor Business: Kitchen and Bath
Kitchen Business Revenue 19% 26% Net Sales @ Rs 101 crs in Q3, de-growth of 7% Slower demand in retail channel 11% 328 7% Strong integration with BH Store & BH Service 310 Home Décor Business aiding growth in full kitchen business 101 90 Higher Loss compared to LY due to subdued sales Lo
Slide 15: International Business
International Business Classification: Confidential
Slide 16: International Business
Business conditions remained challenging in Revenue Asian markets while improvement seen in other 11% geographies 2,290 18% Focus on PreLux & Waterproofing categories 2% International Business 20% 27% 17% 4% 48% 8% playing out well 1,033 779 663 183 510 240 323 40 106 Overall, International Bu
Slide 17: Industrial Business
Industrial Business Classification: Confidential
Slide 18: Industrial Business
Revenue PPG-AP 34% 33% High double digit value growth led by demand 1,399 recovery in Automotive segment 24% 24% Industrial Business 729 Price realizations helped improve PBT margins 513 262 for the quarter & 9 months to double digits PPG-AP Q3 FY23 9M FY23 AP-PPG AP-PPG PBT 194% Continued
Slide 19: APL Standalone Gross Margins
Softening material prices resulted in marked improvement in Gross Margins APL Standalone Gross Margins Material Inflation Material Inflation Material Inflation Material Inflation Material Inflation ~15% ~6% ~4% Material Inflation ~6% ~2% Material Deflation Price Increase Price Increase Price Increas
Slide 20: Summary – Standalone Financials
Summary – Standalone Financials (figures in columns in Rs. crs) Q3 9M 22,364 23% 1% 7,492 25% 6% 8,366 26% 2% 28% 28% 2,898 6% 6% 1,495 1,443 4,073 3,836 1,086 2,866 Net Sales Gross Margins PBDIT PBT PAT Net Sales Gross Margins PBDIT PBT PAT Q3 FY 23 Q3 FY22 9M FY23 9M FY22 Flat Net sales in Q3 on
Slide 21: Summary – Consolidated Financials
Summary – Consolidated Financials (figures in columns in Rs. crs) 9M Q3 22% 2% 25,617 8,607 26% 33% 31% 34% 8% 9,514 5% 3,302 6% 6% 1,611 1,478 1,097 4,395 4,003 2,937 Net Sales Gross Margins PBDIT PBT PAT Net Sales Gross Margins PBDIT PBT PAT Q3 FY 23 Q3 FY22 9M FY'23 9M FY'22 Q3 FY23 Net Sales g
Slide 22: Immediate Outlook – Though uncertain, Positives to look forward
Immediate Outlook – Though uncertain, Positives to look forward Demand conditions looking better – recent downturn in inflation as well as the strong recovery seen with double digit volume and value growth in Dec’22 Good monsoon coupled with expected increases in MSP augurs well for Rural sector
Slide 23: Further investments to fortify our Leadership Position
Further investments to fortify our Leadership Position Setting up a new water-based manufacturing facility with a Plan Capital expenditure Rs crs capacity of 4 lac KL p.a. over next 3 years Approx. investment of Rs. 2000 crs for this facility Capacity Enhancement - 2000 Expected commissioning
Slide 24: Thank You
Thank You Classification: Confidential