Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Q4 FY2024-25 Earnings Presentation
43 slides from Kansai Nerolac Paints's earnings presentation, May 7, 2025
Slide 1: Cover letter to stock exchanges
Page 1 of 43 6th May, 2025 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 - 400 051. Sub.: Q4 & FY 2024-2025 R
Slide 2: Q4 & FY 2024-25 Investor Presentation
Page 2 of 43 Q4 & FY 2024-25 Investor Presentation 7th May 2025 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 3: Disclaimer
Disclaimer Page 3 of 43 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
Slide 4: Agenda
Page 4 of 43 1 Nerolac Story 2 Business Environment 3 Decorative Update 4 Industrial Update 5 Financial Performance 6 Risk and Outlook All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 5: 1. Nerolac Story
Page 5 of 43 1. Nerolac Story All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 6: Purpose and Vision
Purpose: Create environments for6 of Page a 43 healthy and beautiful future Vision: We design solutions that protect, inspire and touch lives everyday Entered within last 3 yrs ESG: Water Positive, Emission reduction, Green energy All rights for this presentation are reserved with Kansai Nerolac Pai
Slide 7: We Are A Powerhouse Of Paint
We Are A Powerhouse Page 7 of 43 Of Paint Expertise and Legacy Innovator’s Spirit Brand Nerolac JAPANESE TECHNOLOGY 2nd Strongest Consumer Paint Brand R&D LEADERS IN INDUSTRIAL ➢ State of the art R&D center Ranked in No.2 among paint brand ➢ Technological Tie Ups （Top of mind awareness & Brand equit
Slide 8: 2. Business Environment
Page 8 of 43 2. Business Environment All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 9: Recap of Business Environment of FY 24-25
Recap of Business Page Environment 9 of 43 FY 24-25 Stable Demand in Govt. focus on Decrease in Crude Oil Rural Demand Recovery Automotive Infrastructure Price Geopolitical Challenges Rupee Depreciated All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Present
Slide 10: 3. Decorative Update
Page 10 of 43 3. Decorative Update All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 11: Decorative Strategy
Decorative Page 11 Strategy of 43 PAINT+ NEW PRODUCTS INFLUENCER PROGRAM NEW BUSINESS PROJECTS BUSINESS BRANDING & MEDIA SPEND (B2B) PREMIUMISATION All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 10 Investor Presentation 7th May’25
Slide 12: Decorative Strategy
Decorative Page 12 Strategy of 43 Retail Key Growth Drivers • Product superiority based on Paint+, Japanese technology Projects • Influencer program, painter loyalty program • Increase Geographical Reach • Distribution expansion • Build pipeline of Project Sites Strategy Drivers • Separate range of
Slide 13: Decorative Portfolio
Decorative Page 13Portfolio of 43 DIVERSE APPLICATIONS, DIVERSE BUSINESS OPPORTUNITIES Paint (Retail/Project) Construction Chemicals Wood Finish Premium Interior Paints Exterior Paints Water-proofing Waterborne coating Enamel Paints Texture Wall Paints Tile Adhesives Pigmented Wood system Paint Anci
Slide 14: Paint+
Paint+ Page 14 of 43 “PAINT+”, THE NEWLY LAUNCHED PREMIUM PRODUCT LINE THAT EMBODIES OUR BRAND KEY PRODUCTS: ❑ Saliency increased by 190+ Basis Points (Y-o-Y) EXCEL NODUST: WOW RANGE: Highest Dust Whitest of White Resistance property in Industry in the category EXCEL EVERLAST 12: IMPRESSION India’s
Slide 15: Decorative – New Products Launched FY 24-25
Decorative – New Product Page 15 ofLaunched 43 – FY 24-25 20+ New Products launched in FY 24-25 EXTERIOR EMULSION WOW WHITE RANGE INTERIOR EMULSION WOOD FINISH & CONSTRUCTION CHEMICAL All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 16: Influencer Program
Influencer Page 16Program of 43 Paint as a service (NxtGen) • Present in 250+ cities • Continued to invest in the NextGen service • Increased salience in Decorative Sales Architects & Interior Designers (Illuminati) • Present in 45+ cities • Architects onboarded 8000+ • Healthy growth in business Pa
Slide 17: Retail Platform for Customers (Offline)
Retail Platform for PageCustomers 17 of 43 (Offline) NXTGEN SHOPPE NEROLAC PAINT+ CORNER 230 Shop in Shop 120+ NXTGEN Shoppe All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 15 Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Pa
Slide 18: New Business & Projects
New Business Page 18 of& 43 Projects NEW BUSINESS PROJECTS (B2B) (CC, WATER PROOFING & WOOD FINISH) ❑ Higher than market growth and increasing our market share ❑ Higher than market growth and increasing our market share ❑ Significant growth witnessed in New Business ❑ Expanded presence to more towns
Slide 19: Branding, Marketing Campaigns & Media
Branding, Marketing Page & 19 ofMedia 43 Campaigns Nerolac Brand Awareness TVC promotion optimized with increase in Digital spends and introduction of new Regional TV channels Organic Traffic SEO prioritized to ensure sustainable and efficient growth 20% Organic Leads 15% All rights for this present
Slide 20: Accolades & Marquee Projects
Accolades & Marquee Page 20 of 43 Projects Decorative Accolades Marquee Projects Tibetan University (Varanasi) 3 E4M Real Time Awards 2 Imagexx Awards (1 Gold & 2 Silver) (1 Gold & 1 Silver) Best Paid Search Ad Campaign Best Best Omnichannel Marketing campaign use of Technology Emerging Technology I
Slide 21: 4. Industrial Update
Page 21 of 43 4. Industrial Update All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 22: Industrial Paints
Industrial Paints Page 22 of 43 DIVERSE APPLICATIONS, DIVERSE BUSINESS OPPORTUNITIES Powder GI + HPC(*) White Goods Kitchen Alloy Wheels Helmet Coil Coating Agricultural Equipment Floor Coating Can Coating Construction Equipment Air conditioner Washing Machine Rebar Plant Bridges *Abbreviation GI… G
Slide 23: Industrial Strategy
Industrial Strategy Page 23 of 43 CONTINUE TO EXPAND THE BUSINESS Strengths/ Uniqueness Strengths/ Uniqueness will help us with: ➢ We are accessible to the global latest technology • Catch up with the demands from the customers through the tie-up with Japan and other countries constantly Automotive
Slide 24: Industrial Highlights - Auto
Industrial Highlights Page 24 of 43 - Auto Automotive Focus on Innovation and creating New technologies to increase Total Addressable Market Passenger Vehicle: • 6% demand growth (SIAM) • KNP witnessed high growth momentum • Introduced Matte clear coat with exceptional line workability 2W+3W (Two &
Slide 25: Industrial Highlights - Refinish
Industrial Highlights Page 25 of 43 - Refinish Auto Refinish Business Growth • High single digit growth Premiumisation • Continued same growth momentum over LY New Technology • Developed water-based solutions, reinforcing commitment to sustainability • Introduced low-VOC, environmentally friendly pr
Slide 26: Industrial Highlights - Performance Coating
– 26Performance Industrial HighlightsPage of 43 Coating Performance Coating Liquid ▪ Strong growth driven by growth in infrastructure and demand for high quality durable coatings ▪ Nerocoil, Nerotherm and Nerothane are the key additions in the product portfolio with better performance Powder ▪ Modes
Slide 27: Industrial Accolades
IndustrialPageAccolades 27 of 43 ‘Reliable partner in Quality & Delivery’ KNPL was awarded for Long associated Award by Royal Enfield Partner by Siemens All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 28: Manufacturing
Manufacturing Page 28 of 43 CAPACITY ❑ Jainpur WB capacity augmentation project is under commissioning ❑ Vizag Phase 1 commissioned & production started in FY 24-25 Future Capacity Expansion: ❑ Auto Paints Capacity augmentation is planned DIGITALISATION ❑ Barcode Management System for Raw Materials
Slide 29: Supply Chain & Human Capital
Supply Chain Page & 29Human of 43 Capital Supply Chain & Services Human Capital People First Continuing the Digital Transformation Journey - Implementation of Transport Management system - Implementation of SAP IBP in process Nurturing Talent Paint your CAREER + with us !! Engagement, Collaboration
Slide 30: Digital Platforms (New Initiatives)
Digital Platforms (New Page 30 of 43 Initiatives) SAATHI (DEALER) SAP ARIBA (SOURCING) SAP ARIBA PORTAL DSN (VENDOR) PORTAL All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 31: ESG
ESG Page 31 of 43 KNPL has been Rated in the Top 8 Ranked in the Top 12 Recognized in the awarded a Bronze Percentile within the Percentile of “Strong ” Category by Medal. This result Chemical Industry FTSE4Good Index CRISIL ESG Ratings places KNPL among Group in the S&P 2024 Review 2023 the top 26%
Slide 32: ESG
ESG Page 32 of 43 Decarbonization Resource Use Quality of Life Diversity 15 % Water Positive 80,000+ > 4.5 % Reduction in Scope 1+Scope 2 Freshwater withdrawal replenished Lives touched through CSR initiatives Gender Diversity emissions since FY2018-2019 to the community we operate in (Excluding Wor
Slide 33: CSR Initiatives
CSR Initiatives Page 33 of 43 Livelihood & Skill Enhancement Program Preventive Health Care & Sanitation Rural / Community Development Advanced Open Training in Painting Distribution of Mosquito Nets - Vizag Handicraft & Jewelry workshop - Sayakha Community Hall - Hosur Promoting Education Ensuring
Slide 34: Accolades
Accolades Page 34 of 43 Winner of ‘Golden Peacock Award for Corporate Social Responsibility’ for the year 2024 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 35: 5. Financial Performance
Page 35 of 43 5. Financial Performance All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 36: Financials Standalone Q4 & FY 24-25
Financials Standalone Page 36 of 43 Q4 & FY 24-25 Q4 % to Q4 % to FY % to FY % to Rs. In Millions Net Net Net Net 2023-24 2024-25 2023-24 2024-25 Revenue Revenue Revenue Revenue Net Revenue 16617 17404 73933 74967 Material Cost 10842 65.2 11379 65.4 47697 64.5 48526 64.7 Operating Expenses 3983 24.0
Slide 37: Financials Consolidated Q4 & FY 24-25
Financials Consolidated Page 37 of 43 Q4 & FY 24-25 Q4 % to Q4 % to FY % to FY % to Rs. In Millions Net Net Net Net 2023-24 2024-25 2023-24 2024-25 Revenue Revenue Revenue Revenue Net Revenue 17694 18167 78014 78230 Material Cost 11615 65.6 11886 65.4 50441 64.7 50693 64.8 Operating Expenses 4289 24
Slide 38: Working Capital
Working Capital Page 38 of 43 Rs Millions FY 2023-2024 FY 2024-2025 Working Capital Value NOD Value NOD Inventories 16160 124 16097 121 Debtors 12153 46 12747 47 Loans & Advances 4792 4822 Cash & Bank balances 1624 857 Total 34729 34523 Less: Curr. Liab. & Prov 15717 16030 Net Working Capital 19012
Slide 39: Dividend
Dividend Page 39 of 43 Financial Year 2021-22 2022-23 2023-24 2024-25 Dividend % 225 270 375* 375* Dividend per share Rs 2.25 2.70 3.75 3.75 (Face Value Re 1 each) *Including special dividend 125% All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation
Slide 40: Capex
Capex Page 40 of 43 Rs Million 2021-22 2022-23 2023-24 2024-25 Projects 1,415 280 696 1,741 Normal 875 1,116 1,676 1,755 Total Capex 2,290 1,396 2,372 3,496 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 41: 6. Risk and Outlook
Page 41 of 43 6. Risk and Outlook All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 7th May’25
Slide 42: Risk and Outlook
Risk and Outlook Page 42 of 43 Risk • Rupee depreciation will increase cost of imports • Uncertain Geopolitical conditions • Increase in uncertainty in Global supply chains due to trade tensions • Inflationary risk due to the tariffs Outlook • As per RBI bulletin, • Rural demand is expected to conti
Slide 43: Thank You
Page 43 of 43 THANK YOU All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 7th May’25
Kansai Nerolac Paints — Q4 FY2024-25 Earnings Presentation on 6ix