Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q2 FY2025 Earnings Presentation
33 slides from Asian Paints's earnings presentation, Nov 11, 2024
Slide 1: Stock exchange intimation letter
APL/SEC/31/2024-25/11 11th November 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 Security Code: 500820 Symbol: ASIANPAINT Sir/Madam, Sub: Intimat
Slide 2: Investor Conference Q2 - FY2025 Results
asianpaints Investor Conference Q2 - FY2025 Results 1
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! 2
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 mat
Slide 5: Decorative Business (India)
Subdued Demand Conditions Impacted Volumes Previous Price Reductions, Shift in Mix & Higher Rebates Affected Value Decorative Business (India) --> 6.0% 11.5% 5 Yr CGR ■ Q2 FY24 ■ Q2 FY25 -->10.1% 5 Yr CGR 0.5% -0.5% Volume Gr% Value Gr% -6.7% --> 13.4% 5 Yr CGR ■ H1 FY24 ■ H1 FY25 --> 11.4% 5 Yr CGR
Slide 6: Decorative Plus Industrial Paints
Decorative Plus Industrial Paints Relatively better Growth in Industrial Business --> 11.4% 5 Yr CGR --> 10.3% 5 Yr CGR ■ Q2FY24 ■ Q2FY25 6% 1.1% Flat Volume Gr% Value Gr% -5.5% -->13.2% 5 Yr CGR ■ H1 FY24 ■ H1 FY25 -->11.5% 5 Yr CGR 8% 4% 4.8% ~ - - - - - -- L . . . . . - - - ~ - - - - - -- --~ -3.
Slide 7: Decorative Business (India)
Weak Q2 Leading to Softening of the Double - Digit Trajectory in the 5 yr Compounded Volume Growth Decorative Business (India) *15.3% 240 *18.1% *15.1% *14.1% *14.6% *11.5% *19.0% *16.5% *15.4% *16.8% 200 160 120 80 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 F
Slide 8: Decorative Business (India) Key Performance Drivers
Decorative Business (India) Key Performance Drivers Weak consumer sentiment impacted demand in Projects / Institutional Business did well with Q2. Further effected by extended monsoons good growth in Factories & Builder segment Urban centers seeing stress Pace of growth was slower compared t
Slide 9: Reviving Our Timeless Classic Ad
Aaj Bhi Har Ghar Kuch Kehta Hai….. ……….Homes have changed & the world has changed yet the one thing that remains constant is our relationship with our home Reviving Reviving Our Our Timeless Timeless Classic Ad Classic Ad 8
Slide 10: Innovation in Regional Packs
Innovation in Regional Packs Kerala Maharashtra Gujarat 9
Slide 11: Packaging Change: Interior Emulsions
Packaging Change: Interior Emulsions ~ ~ ,royake •~ Cl LUXURY fMULSION Luxury Range C: ,_ -~ ~~ I " ~",. ~. [ I ,.~ S,4,n/le~•~l•n<e PIO!~'" Premium Range TRACTOR EMULSION Economy Range 10
Slide 12: Packaging Change: Smartcare
Packaging Change: Smartcare Exterior Waterproofing Interior Waterproofing 11
Slide 13: Advanced Range: Strengthening the Proposition
Advanced Range: Strengthening the Proposition Strengthening the Advanced Proposition I Simple and Effective Communication Twin Power - 10% higher coverage than base variant + better hiding/ whiteness Silicon Boost - better durability & finish 12
Slide 14: Strengthening Profitability: New Range Introduction
Strengthening Profitability: New Range Introduction + 111111 r . '"'"" w,lSll.dH.ITY ,... ::::., , Shyne Advance Range Ultima Protek Advanced Glitz Reserv: Colour Idea+ BH Product I Soft Sheen I Exclusive Shades 13
Slide 15: Ingredient Story: Strengthening Product Performance
Ingredient Story: Strengthening Product Performance Build premium Imagery for the Brand Dial on Graphene ingredient story PREMIUM CATEGORY powered by Nano-block Ultima powered by PU Serum New Communication on Ultima Protek in Nov 14
Slide 16: World's Largest Repository of Colour
World’s Largest Repository of Colour Exclusively for Architectural and Interior Application 264 whites 5300+ Unique Shades 528 neutrals 2300+ New Shades 4312 hue-spectrum Introduced 262 melange shades AP’s intellectual authority & prowess around paints and colour intelligence on the global map 15
Slide 17: Future of Waterproofing
Future of Waterproofing Single Component PUD based fleece reinforced liquid applied coating for exposed terrace surfaces Highly Durable, Strong Coating with Best-in-Class Crack Bridging Ability Excellent Puncture Resistance & Tensile Strength Lifetime Warranty & Peace- Up to 25 Years* Waterp
Slide 18: NeoBharat Latex Paint
NeoBharat eo harat Latex Latex Paint Pain |I Pragati Pragat· Ke Ke Rang Rang 1st of its kind Content series with top regional creators highlighting the contribution of rural communities in India’s progress A local Akhada at Sonipat transformed into A Dhaba on NH-33 in Jamtara honoring The local Sang
Slide 19: Kaamyabi Ke Rang – Season 5
Murari Ramesh l<ota, Raj asthan Kangra, Himachal Pradesh Murari's incredible journey to becoming a contractor, despite facing Ramesh's upbringing in the serene and remote hills of Himachal Pradesh numerous challenges, serves as a remarkable tale of unwavering instilled in him a unique set of challen
Slide 20: Our Home Décor Foray
Our Home Décor Foray No. 1 Integrated Home Décor Modular Kitchen, Kitchen Bath Fittings & Fabrics & Furnishings No. 1 in Player Hardware & Components Sanitaryware Decorative ~ 4.5% of Lighting Decorative 62 Beautiful Revenue Homes Stores – One Stop Home Wardrobes and Vanities Furniture Wall Covering
Slide 21: Home Décor Business
Enhanced Collaboration with our Beautiful Homes Network Kitchen & Bath White Teak & Weatherseal lf. 17% • 1f 7% Q2 FY25 H1 FY25 Home Décor Business Q2 FY25 H1 FY25 ■ 6% 61 206 177 1f 19% 1f 9% 10% 1f 2% 31 105 5% 25 83 13 Kitchen Revenue Bath Revenue White Teak Revenue Weatherseal Revenue Kitchen:
Slide 22: New collections of Wallcoverings, Rugs, Furnishings & Fabrics
Our new collections of Wallcoverings, Rugs, Furnishings & Fabrics in collaboration with several European Designers op asianpainls ' ....,, ... ,.,, ..... ' ' ' ' ' .... .......'' .. ' ' ..... ,, .............. . Tni1~i~faI . .. . .-............... .... . .. . . .. .. . . . . . .. .. ffllliiirii WALL
Slide 23: International Business
International Business Nepal Ba n g tadeslll Solomon ls Lan s Indonesia 5 Vanuatu B ,a lllrain Fij i 4 Qatar 10 m1an 7 7 - AE Sri Lanka 6 Eth 1op 1a :S amo.a 1 2 asianpaints 3 6 I CAU l ~ 5 scib 1 TAUBMANS 7 <:>opco 22
Slide 24: International Business: Macro-Economic Challenges Constrain Profitability
Macro-Economic Challenges Constrain Profitability Revenue D . . International Business -1% Q2 FY25 H1 FY25 Q2 growth in INR terms was largely flat; However, a strong 8.7% growth in constant currency terms 1,449 Impacted by currency devaluation in Ethiopia --1% -5% Middle East region reported s
Slide 25: Industrial Business: Shoring up our Revenues in Q2
Industrial Business: Shoring up our Revenues in Q2 PPGAP 8% 1,041 Q2 FY25 H1 FY25 General Industrial and Refinish segment grew well; Industrial Business 6% Auto OEM revenue growth declined in line with 524 Automotive industry performance 14% 7% 182 Stable profit margins. PBT margin flat at 15.7%
Slide 26: Material Price Inflation and Price Reductions Impacted Gross Margins
Material Price Inflation Coupled with Previous Price Reductions & Increased Rebates Impacted Gross Margins Benefit of Price Increases Taken in Q2 This Year to Flow Through Largely in H2 Material Inflation Material Deflation Material Deflation Material Inflation ~2% Material Deflation Material Deflat
Slide 27: Summary Standalone Financials
Summary Standalone Financials Q2 Net Sales de-growth of 6%; Impacted by subdued demand & price Q2 FY24 ■ Q2 FY25 D ■ reductions -6% 6,841 Gross margins at 41.1% in Q2; ~280 bps decline over Q2 last year -12% given the price decrease taken in H2 last year, product mix & -29% -32% 2,814 material i
Slide 28: Summary Consolidated Financials
Summary Consolidated Financials Q2 Net Sales de-growth of ~5% given subdued growth in domestic ■ Q2 FY24 ■ Q2 FY25 decorative segment. Relatively better performance in Industrial -5% segments D D D 8,003 -11% Gross margins at 40.6% in Q2; ~260 bps decline over Q2 last year -28% -31% D -44% 3,249
Slide 29: Exceptional Items in Q2 Financials
Exceptional Items in Q2 Financials White Teak & Weather Seal Impairment: Considering the past performance and revised business plans, we have taken prudent assessment of our investments in White Teak and Weather Seal, which has resulted in: Standalone Financials: Impairment provision on ‘investm
Slide 30: Dividend Distribution
Dividend Distribution FY 2024-25 Interim Dividend 425% (₹ 4.25) Interim Dividend 515% (₹ 5.15) FY 2023-24 Final Dividend 2815% (₹ 28.15) Total Dividend 3330% (₹ 33.30) Payout Ratio : 60% 29
Slide 31: Outlook for FY2025
Outlook for FY2025 Demand conditions challenging; Cautious about immediate recovery in Q3 despite good wedding season Adequate monsoons coupled with expected boost in Government spending should aid recovery in rural demand in Q3 and Q4 Stronger focus on the core; strengthening the brand Focu
Slide 32: Near & Medium Sustainability Targets & Progress
Near & Medium Sustainability Targets & Progress 5.9x 30% 3.9x 4.0x 6.0x 15% 30% 60% Fresh Water % Recycled Material Replenishment in Packing 63% 80% 66% 75% 100% n Reduction in Specific 77% 81% 83% Hazardous Waste/KL % Renewable Electricity DD Finished Product (kg/KL) 1.3 78% Beneficiaries of 3.5 5.
Slide 33: Thank You
‘Dawn of Valour’ murals unveiled in Tawang On our 78th Independence Day, we celebrated the unveiling of the 1st project under ‘Asian Paints St+art Frontier’ initiative featuring art interventions devoted to honoring the bravery and dedication of our armed forces. THANK YOU 32