Kansai Nerolac Paints Limited · NSE:KANSAINER

Kansai Nerolac Paints — Q1 FY2022-23 Earnings Presentation

20 slides from Kansai Nerolac Paints's earnings presentation, Aug 2, 2022

  1. Slide 1: Cover letter to stock exchanges for Q1 FY 2022-23 investor presentation

    Page 1 of 20 2nd August, 2022 1. Corporate Relationship Department 2. Manager – Listing BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (E), Mumbai - 400001. Mumbai - 400051. Sub.: Q1 FY 2022-23 Fi

  2. Slide 2: All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

    Page 2 of 20 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

  3. Slide 3: Investor Presentation Q1 Update (FY 22-23)

    Page 3 of 20 Investor Presentation Q1 Update (FY 22-23) All rights for this presentation are reserved with Kansai Nerolac Paints Limited.

  4. 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

  5. Slide 5: Agenda

    Page 5 of 20 Agenda Business Environment FY 22-23* Financial Performance FY 22-23* Business Review FY 22-23* Risks and Future Outlook *The details in the presentation are for the period April – June 2022 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Con c

  6. Slide 6: Business Environment FY 22-23 Q1

    Page 6 of 20 Business Environment FY 22-23 Q1  Good demand for both Decorative and Industrial paints  Industrial demand revival led by Automotive due to easing of chip shortages  Increase in Crude oil prices  Currency volatility All rights for this presentation are reserved with Kansai Nerolac P

  7. Slide 7: Agenda

    Page 7 of 20 Agenda Business Environment FY 22-23* Financial Performance FY 22-23* Business Review FY 22-23* Risks and Future Outlook *The details in the presentation are for the period April – June 2022 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Con c

  8. Slide 8: Financials Standalone Q1 FY 22-23

    Page 8 of 20 Financials Standalone Q1 FY 22-23 Q1 % to Q1 % to Rs. In Millions Net Net 2021-22 Sales 2022-23 Sales Net Revenue 13216 100.0 19446 100.0 Material Cost 8679 65.7 13629 70.1 Overheads 1887 14.3 2308 11.9 PBDIT 1897 14.4 2556 13.1 PAT 1189 9.0 1629 8.4 Growth - Net Revenue : 47.1% PBDIT:

  9. Slide 9: Financials Consolidated Q1 FY 22-23

    Page 9 of 20 Financials Consolidated Q1 FY 22-23 Q1 % to Q1 % to Rs. in Millions 2021-22 Net Sales 2022-23 Net Sales Net Revenue 14027 100.0 20514 100.0 Material Cost 9230 65.8 14379 70.1 Overheads 2108 15.0 2589 12.6 PBDIT 1905 13.6 2550 12.4 PAT 1114 7.9 1521 7.4 Growth - Net Revenue : 46.2% PBDIT

  10. Slide 10: Financial Analysis Q1 FY 22-23

    Page 10 of 20 Financial Analysis Q1 FY 22-23  Positive Factors  High Double digit volume growth witnessed  Effect of Price Increases taken in earlier Quarters reflected in value growth  Saliency of Premium products has been increased  Judicious Control on cost and Overheads continued  Slight s

  11. Slide 11: Agenda

    Page 11 of 20 Agenda Business Environment FY 22-23* Financial Performance FY 22-23* Business Review FY 22-23* Risks and Future Outlook *The details in the presentation are for the period April– June 2022 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Con c

  12. Slide 12: ESG Performance

    Page 12 of 20 ESG PERFORMANCE Recognition CRISIL ESG Compendium FTSE4Good S&P Recognized KNPL in the KNPL featured in the Top Quartile of Ranked KNPL in the Top Quartile of “Leadership” Category by CRISIL in Global Chemical Industry S&P ESG FTSE4Good Index Series June 2022 its Sustainability Yearboo

  13. Slide 13: Marketing and Media campaigns

    Page 13 of 20 Marketing and Media campaigns Associated Sponsor for IPL Dealer convention at Dubai Dealer Event with Brand Ambassador Ranveer Presence in popular News & Singh Entertainment channels Co-Sponsored BIGG BOSS • Painter meet with Celebrity Malayalam season 4 • Painter training All rights f

  14. Slide 14: Decorative

    Page 14 of 20 Decorative Nerolac launched 5 new Products in Decorative Market Impressions Kashmir Epoxy Primer • Demand was comparatively higher in Tier-1 and metros. Highlights Premium Nxt- Range • New Products introduced with Paint+ proposition are driving growth • Demand generation team ramped up

  15. Slide 15: Technological Advancement in Industrial

    Page 15 of 20 Technological Advancement in Industrial Auto New Generation •Excellent edge corrosion property CED •Heavy Metal free (Tin) Auto •Reduced energy use Low Bake Products •Lower GHG emissions Fluro polymer •Superior Weather ability and exterior durability Performance based coating •Long ter

  16. Slide 16: Industrial

    Page 16 of 20 Industrial Market • Auto Industry witnessed good demand growth during the quarter both on YOY and sequential basis. • In spite of supply chain bottlenecks PV segment did well on account of low base, good demand pull. • Two-wheeler segment is witnessing slow but steady recovery. • Comme

  17. Slide 17: Subsidiary Performance

    Page 17 of 20 Subsidiary Performance Highlights • Despite a tough business environment, Nepal and Sri-Lanka witnessed a good top-line growth • Growth in Bangladesh was Muted • Nerofix delivered a growth of 100 % + All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Inve

  18. Slide 18: Agenda

    Page 18 of 20 Agenda Business Environment FY 22-23* Financial Performance FY 22-23* Business Review FY 22-23* Risks and Future Outlook *The details in the presentation are for the period April – June 2022 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Con

  19. Slide 19: Risks and Outlook

    Page 19 of 20 Risks and Outlook  Risk  Forex volatility continues  Crude derivative prices continue to remain firm  Outlook  Automotive sector showed positive sentiments as chip shortage issue is slowly easing out and expected to improve further .  Over the next one year paint industry demand

  20. 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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