Berger Paints India Limited · NSE:BERGEPAINT
Berger Paints India — Q1 FY25 Earnings Presentation
26 slides from Berger Paints India's earnings presentation, Aug 9, 2024
Slide 1: Exchange cover letter for investor presentation
9th August, 2024 STOCK. EXG/ AG/ 2024-25 The Corporate Relationship The Listing Department Listing Department Department National Stock Exchange of The Calcutta Stock BSE Limited, India Limited Exchange Ltd. 1st Floor, Exchange Plaza, 5th Floor, 7 Lyons Range, Phiroze Jeejeebhoy Towers, Plot No.-C/1
Slide 2: Earnings Update Call, Q1 FY25
Berger Paints India Limited Earnings Update Call, Q1 FY25 August 9, 2023
Slide 3: Q1FY25: Standouts
Q1FY25 : Standouts Highest Market Share gain among Price increase undertaken listed players on YoY & QoQ basis on differentiated products Operating margin Strong double digit outperforms guidance volume growth
Slide 4: Q1 FY25 Performance
y YEARS OF WoO Trust Q1 FY25 Performance
Slide 5: Consistently Outperforming Industry
Revenue Growth % 9.5 6.6 7.7 3.6 Consistently 5.8 3.5 2.7 Outperforming Industry 1.4 0.4 -0.8 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Paint Industry Berger Paints Industry Growth percentage calculated on 5 listed paint companies Growth percentage calculated for Berger Paints’ India operation
Slide 6: Gain in Market Share & Profitability
Gain in Market Share & Profitability
Slide 7: Market Share
Market Share 20.9 19.7 19.3 18.9 18.6 FY21 FY22 FY23 FY24 Q1FY25 Market Share percentage calculated on 5 listed paint companies Market share calculated for Berger Paints’ India operation
Slide 8: Operating Profit Margin Movement: Standalone
Operating Profit Margin Movement : Standalone 18.8 17.2 16.3 16.5 16.7 15.2 15.6 15.0 14.5 13.4 12.9 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Operating margin outperformed our guidance of 15-17% for the quarter
Slide 9: Standalone: Q1 FY25 Performance
Standalone : Q1 FY25 Performance Topline Growth % • Double digit volume growth registered for the quarter • Value growth moderated over corresponding period on account of • Impact of product price reduction of about 5% taken in Q3 & Q4 FY24 • High volume/low value CC products showed greater traction
Slide 10: Sustained growth trend
Sustained growth trend Q1FY25 Standalone : Volume Sales CAGR% 32.0 20.8 12.2 2 yrs 3 yrs 4 yrs Q1FY25 Standalone : Value Sales CAGR% 35.8 Maintained strong 20.1 compounded growth 6.2 consistently over the past 2/3/4 years 2 yrs 3 yrs 4 yrs
Slide 11: Operating Profit Growth/Margin (%) Q1FY24
Operating profit for the quarter showed a negative growth on the back of : Operating Profit Growth/Margin (%) • Unusually high profit growth and margins in the corresponding quarter last year aided by low cost inventory • Inflation in RM prices specially for Methyl Methacrylate, Butyl Acrylate which
Slide 12: Financial Results – Standalone Q1 FY25
Financial Results – Standalone Q1 FY25 ₹ Crores Q1 FY25 % Q1 FY24 % Growth % Total income from operations 2806.31 2739.76 2.4 Material Cost 1704.89 60.8 1661.27 60.6 Employee Cost 145.51 5.2 126.24 4.6 Other expenses 472.21 16.8 438.42 16.0 PBDIT (Excluding Other Income) 483.70 17.2 513.83 18.8 (5.9
Slide 13: Q4FY22 Q1FY23 Q2FY23
40.0 40.3 40.3 39.6 39.4 39.2 38.3 35.3 34.5 33.8 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25
Slide 14: Decorative Business: Q1FY25
Decorative Business : Q1FY25 o Decorative business recorded double digit volume growth o Construction chemical & waterproofing business had a strong performance o Project business had an improved showing on the back of outperformance in the real estate sector o Aggressive Network expansion continued
Slide 15: Recently launched products doing well
Recently launched products doing well “Chhath ke cracks ko kare TOTALLY SEAL Ghar mein de THANDAAA FEEL”
Slide 16: Innovative Products & Services
Innovative Products & Services
Slide 17: Berger Exclusive Stores - Ultimate paint destination
Berger Exclusive Stores -Ultimate paint destination 616 Stores – Target 1000+ stores by year end
Slide 18: Digital Initiatives
Digital Initiatives Company’s new website gaining traction Salesforce introduced to help in reacting faster & better to our customers Mycolour APP gaining popularity 130000+ users
Slide 19: Industrial Business: Q1FY25
Industrial Business : Q1FY25 Protective Coating business had a modest performance somewhat impacted by General Elections. Business picked up in June Automotive and General Industrial business saw muted growth in the quarter on the back of subdued growth in the commercial vehicle segment Powder Coati
Slide 20: Significant projects in Industrial business
Significant projects in Industrial business Chenab Bridge Vande Bharath IICC Yashabhoomi Chennai Airport
Slide 21: Improved Net cash position
Jun’24 : Rs 657 crs Mar’24 : Rs 341 crs Dec’23 : Rs 56 crs Improved Net cash position
Slide 22: Financial Results - Consolidated Q1FY25
Financial Results- Consolidated Q1FY25 ₹ Crores ₹ Crores Q1FY25 % Q1FY24 % Growth % Total income from operations 3091.01 3029.51 2.0 Material Cost 1858.45 60.1 1823.09 60.2 Employee Cost 192.22 6.2 166.90 5.5 Other expenses 517.93 16.8 482.77 15.9 PBDIT (Excluding Other Income) 522.41 16.9 556.75 18
Slide 23: Performance - Consolidated: Q1FY25
Performance - Consolidated: Q1FY25 ▪ Company’s overseas subsidiary, Bolix S.A, Poland continued its growth trajectory on topline. Profitability showed robust growth both in constant currency and INR, helped by improvement in operating margin. ▪ Company’s overseas subsidiary, BJN Nepal continued its
Slide 24: Initiatives
19.59% Electricity 839 tonnes waste recycled generated from renewable in FY24 energy in FY24 Environment Social Governance Last mile delivery through E vehicle Initiatives 49,149 KL water recycled in FY24 to reduce carbon footprint 53% increase from FY23
Slide 25: Outlook
• Normal monsoon likely to shore up rural demand condition • Decorative business value growth to improve in Q2, aided by product price increases • Industrial business outlook seen better on the back of increased government spending on infrastructure post-elections • Geopolitical factors may pose som
Slide 26: Disclaimer
Disclaimer This presentation has been prepared by Berger Paints India Limited for information purposes only. The forward looking statements, if any, involve risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the statements.