Indigo Paints Ltd · NSE:INDIGOPNTS
Indigo Paints — FY2021 Earnings Presentation
19 slides from Indigo Paints's earnings presentation, May 14, 2021
Slide 1: Investor Presentation (Update - Q3, Q4 & FY 21)
Investor Presentation (Update - Q3, Q4 & FY 21) May 14, 2021
Slide 2: Disclaimer
Disclaimer Certain statements and opinions with respect to the anticipated future performance of Indigo Paints Ltd (“Indigo”) in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be
Slide 3: Analyst Presentation FY 21: 1. Corporate
Analyst Presentation FY 21 1. Corporate
Slide 4: IPO completion
IPO CORPORATE : IPO completion • Company completed a successful IPO in Jan 21, and was listed on Feb 2, 21; issue subscribed 117 times; IPO quantum Rs 1169 cr o Institutional investors : 190 times o H N I investors : 263 times o Retail investors : 16 times • Huge participation from marquee investors
Slide 5: Covid-19 impact
Covid-19 CORPORATE : Covid impact • Severe impact in Apr 20 due to nationwide lockdown; manufacturing facilities resumed operations in end-Apr • Excellent bounce-back in sales from May 20, as smaller towns were less impacted by Covid • No impact on cash-flows of company • No layoffs of any employee;
Slide 6: Infrastructure
Infrastructure CORPORATE : Infrastructure • Capacity of Putty plant at Jodhpur was doubled in FY 21; some expansion in water- based paint capacity also effected • Capacity of water-based paint capacity at Kochi was also augmented in FY 21 • About 17 acres of additional land was acquired at Tamil Nad
Slide 7: Analyst Presentation FY 21: 2. Financials for Q3 and Q4
Analyst Presentation FY 21 1. Corporate 2. Financials for Q3 and Q4
Slide 8: Financials for Q3 and Q4
Financials for Q3 and Q4 FINANCIALS FOR Q3 and Q4 : (INR Cr) Particulars H1 FY21 Q3 FY21 Q4 FY21 Net Revenues from Operations 259.4 209.6 254.3 Y-o-Y growth for period -4.8% 22.2% 40.8% Gross Margin % 47.9% 49.6% 46.7% EBITDA % 18.5% 15.0% 16.9% PAT Margin % 10.5% 8.9% 9.7% Q3 EBITDA was lower due
Slide 9: Comments on Q3 and Q4
Comments on Q3 and Q4 FINANCIALS FOR Q3 and Q4 : Sales growth, which was negative in first half (due to April lockdowns), picked up to >22% growth in Q3, and 41% in Q4 There was an unprecedented increase in RM prices during Q3 and Q4; we increased prices of paints in tranches between Nov-Mar to
Slide 10: Analyst Presentation FY 21: 3. Financials for FY 21
Analyst Presentation FY 21 1. Corporate 2. Financials for Q3 and Q4 3. Financials for FY 21
Slide 11: Value/Volume growth in FY 21
Value/Volume growth in FY 21 VALUE / VOLUME GROWTH : Value Volume Volume Value Product Category Growth Growth Contribution Contribution Cement Paints + Putty 26.4% 19.6% 56.0% 15.3% Emulsions 11.7% 8.7% 17.4% 42.8% Enamels + Wood 22.9% 15.4% 5.0% 18.1% Coatings Primers + Distempers + 22.0% 20.3% 21.
Slide 12: Salient Features FY 21
Salient Features FY 21 SALIENT FEATURES : Our portfolio of differentiated products accounted for 29.5% of Revenues in FY 21, compared to 28.6% of Revenues in FY 20 Due to our large presence in Kerala, our growth rate in Kerala is always much lower than in other States. Kerala’s share of Revenue
Slide 13: Network Expansion FY 21
Network Expansion FY 21 NETWORK EXPANSION : • Company launched aggressive campaign from Dec 20 to accelerate expansion of Dealer network ; our active Dealer count increased from ~11,200 at end of FY 20 to ~13,200 at end of FY 21 • Our population of Tinting machines increased from ~4,300 to ~5,500 du
Slide 14: Brand building FY 21
Brand building FY 21 ADVERTISING : • Despite headwinds of Covid and rising RM costs, our Company elected to continue to invest in Brand-building activities during FY 21 • Media advertising spends of Company increased from Rs 61.52 cr (FY 20) to Rs 63.35 cr (FY 21), despite zero advertising from Apr-
Slide 15: Key Financials FY 21
Key Financials FY 21 KEY FINANCIALS FOR FY 21: (INR Cr) Particulars FY 20 FY 21 % Change Gross Revenues 688.9 813.5 18.1% Net Revenues 624.8 723.3 15.8% Gross Margin 48.5% 47.9% EBITDA 90.99 122.5 34.7% EBITDA Margin 14.6% 16.9% PAT 47.8 70.9* 48.2% PAT Margin 7.6% 9.7% Net Worth 197.1 563.5 * PAT i
Slide 16: Key Metrics FY 21
Key Metrics FY 21 KEY METRICS FOR FY 21: Particulars FY 20 FY 21 Freight expense 10.5% 9.9% (% of Net Revenue) Advertising & promotional expense 12.7% 10.7% (% of Net Revenue) Employee cost 6.7% 6.7% (% of Net Revenue) Other Operating expense 4.0% 3.7% (% of Net Revenue) Return on Equity (RoE %) 24.
Slide 17: Comments on Financials of FY 21
Comments on Financials of FY 21 Our company continues to outperform the paint industry growth parameters, by registering 15.8% topline growth in covid-impacted year Volume growth has been healthy across all product categories Managed to maintain Gross margins with marginal 0.5% drop, despite u
Slide 18: Future Outlook
Future Outlook Sales outlook is very uncertain in near-term; however, confident of sharp recovery once lockdowns are lifted. Expect to continue to outperform industry growth figures Will accelerate expansion of Dealer network and tinting machines RM prices have started moderating in Q1, and an
Slide 19: Thank you
Thank you 19