Indigo Paints Ltd · NSE:INDIGOPNTS
Indigo Paints — Q1 FY25 Earnings Presentation
30 slides from Indigo Paints's earnings presentation, Aug 6, 2024
Slide 1: Intimation under Regulation 30 - Investor Presentation
August 06, 2024 To, To BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C-1, Block G, 25th Floor, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai- 400001 Mumbai - 400051 Scrip Code: 543258 NSE SYMBOL:
Slide 2: Indigo Paints Ltd Investor Presentation (Q1 FY25)
INDIGO Paints Ltd Investor Presentation (Q1 FY25)
Slide 3: Disclaimer
Disclaimer Certain statements and opinions with respect to the anticipated future performance of Indigo Paints Ltd (“Indigo”) in the presentation (“for ward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to b
Slide 4: Contents
Contents Financial Update - Standalone (Q1 FY25) - Consolidated (Q1 FY25) KPI Growth Drivers Sustainability initiatives Outlook 3 3
Slide 5: Industry leading growth despite subdued market conditions
Financial Grow t h KPIs update driv ers Industry leading growth despite subdued market conditions Standalone | Q1 FY25 Rs. 293.9 Cr 47.0% 15.6% Re venue from Operations Gross Margin % EBITDA Margin % 6.1% YoY Growth EBITDA Rs. 45.8 Cr Maintaining pole position -4.1% YoY Growth 8.9% 7.2% A&P as % of
Slide 6: Profitability impacted by industry wide price cut & higher employee expenses
Financial Grow t h KPIs update driv ers Profitability impacted by industry wide price cut & higher employee expenses 5 Note: RoCE calculated on TTM b asis
Slide 7: Financial Analysis
Financial Grow t h KPIs update driv ers Financial Analysis 1 2 3 4 5 Company has Indigo continues to Indigo continued The EBITDA The PAT margin for outperformed maintain pole to invest in brand margin for the the quarter reduced industry growth position in gross building. The A&P quarter moderated f
Slide 8: Contents
Contents Financial Update - Standalone (Q1 FY25) - Consolidated (Q1 FY25) KPI Growth Drivers Sustainability initiatives Outlook 7 7
Slide 9: Consolidated revenue aided by outstanding growth in Apple Chemie
Financial Grow t h KPIs update driv ers Consolidated revenue aided by outstanding growth in Apple Chemie Consolidated | Q1 FY25 Rs. 311.0 Cr 46.6% 15.2% Re venue from Operations Gross Margin % EBITDA Margin % Industry Leading Gross EBITDA Rs. 47.4 Cr 7.7% YoY Growth -3.5% YoY Growth Margin 8.5% PAT
Slide 10: Profitability impacted due to lower realization & increased manpower
Financial Grow t h KPIs update driv ers Profitability impacted due to lower realization & increased manpower 9 Note: RoCE calculated on TTM b asis
Slide 11: Consistently outpacing industry growth for 5 quarters
Financial Grow t h KPIs update driv ers Consistently outpacing industry growth for 5 quarters Indigo Paints Industry 28.8% 25.8% 18.3% 15.0% 7.1% 7.8% 5.6% 1.2% 0.6% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 -1.6% Source: Paints company data based on latest filings of publicly listed peers for period endin
Slide 12: Maintaining pole position in terms of Gross Margin%
Financial Grow t h KPIs update driv ers Maintaining pole position in terms of Gross Margin% Indigo Paints Paint companies' average 48.2% 48.9% 47.3% 46.6% 45.6% 41.2% 41.9% 42.2% 42.0% 41.9% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 YoY + 214 + 386 + 436 + 204 (73) Expansion /(Compre ssion) (in bps) Source
Slide 13: Financial snapshot for last 5 years
Financial Grow t h KPIs update driv ers Financial snapshot for last 5 years Sales (INR Cr) EBITDA (INR Cr) 1,306.1 27.2 % 238.1 1,073.3 906.0 181.5 723.3 122.5 136.0 624.8 91.0 311 47.4 FY20 FY21 FY22 FY23 FY24 Q1 FY20 FY21 FY22 FY23 FY24 Q1 FY25 FY25 PAT (INR Cr) RoCE (%) 34.3 32.82% 148.8 115.6 20
Slide 14: Contents
Contents Financial Update - Standalone (Q1 FY25) - Consolidated (Q1 FY25) KPI Growth Drivers Sustainability initiatives Outlook 13 13
Slide 15: Product category snapshot for Q1 FY25
Financial Grow t h KPIs updat e driv ers Product category snapshot for Q1 FY25 YoY growth for Q1 FY25 vs. Q1 FY24 Product Value growth (%) Volume growth (%) Putty + Cement Paints 8.9% 8.2% Emulsions -3.1% 0.4% Enamels and wood coatings -1.0% 5.0% Primers + Distempers + 28.6% 24.4% Others 14
Slide 16: Continued network expansion
Financial Grow t h KPIs updat e driv ers Continued network expansion Act ive dealers and depot s (#) # of depots 47 47 47 47 49 51 53 53 53 • Active dealer base increased to Active Tinting 7,435 7,716 7,978 8,273 8,657 9,114 9,510 9,842 10,210 18,500 and focus continues to m/c be on improving throug
Slide 17: Contents
Contents Financial Update - Standalone (Q1 FY25) - Consolidated (Q1 FY25) KPI Growth Drivers Sustainability initiatives Outlook 16 16
Slide 18: Future growth drivers – Indigo Paints 2.0 Strategy
Financial Growth KPIs updat e drivers Future growth drivers – Indigo Paints 2.0 Strategy V. Expansion into adjacencies IV. Brand • Expand into non decorative segment. & marketing focus Foray into adjacencies like construction chemicals & III. Capacity • Ramp up salesforce w aterproofing. augmentatio
Slide 19: New Products/Variants/Designs
Financial Growth KPIs updat e drivers New Products/Variants/Designs Stain Free Interior Emulsion A high opacity Interior wall finish with soft sheen and pleasant smell. It is based on highly durable acrylic emulsion and special additives to give exceptional flexibility, high wash ability, and excell
Slide 20: Geographical Expansion | Deepening our Network
Financial Growth KPIs updat e drivers Geographical Expansion | Deepening our Network 5 Manufacturing plants 28 States 53 Depots 18,500+ Active dealers 10,210 Tinting machines Fortifying our presence in Tier 3,4 cities and fast growing in Tier 1,2 cities 19
Slide 21: Capacity Augmentation | Expansion Progress
Financial Growth KPIs updat e drivers Capacity Augmentation | Expansion Progress Jodhpur Upcoming Plant at Jodhpur • Foundation completed and erection work progressing in full pace at the water based plant with capacity of 90,000 KLPA • Foundation work nearing completion at the solvent based plant w
Slide 22: Brand Focus | Consistent focus to build a pan-India brand
Financial Growth KPIs updat e drivers Brand Focus | Consistent focus to build a pan-India brand Advert ising & Promot ional Spends (INR Cr) As % revenue 12.63% 12.65% 10.65% 9.72% 7.70% 7.36% 7.17% 92.32 88.06 82.7 79.05 77.06 67.66 21.07 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Q1 FY 25 • Continue to pu
Slide 23: Marketing Focus | Gaining loyalty of channel partners
Financial Growth KPIs updat e drivers Marketing Focus | Gaining loyalty of channel partners 22
Slide 24: Robust Sales Traction At Apple Chemie India Pvt Ltd
Financial Growth KPIs updat e drivers Robust Sales Traction At Apple Chemie India Pvt Ltd • Indigo Paints acquired 51% of Apple Chemie to foray into construction chemicals & water proofing segment (WPCC) • WPCC products for retail channel launched and marketed under Indigo brand (Protect Plus Series
Slide 25: Contents
Contents Financial Update - Standalone (Q1 FY25) - Consolidated (Q1 FY 25) KPI Growth Drivers Sustainability initiatives Outlook 24 24
Slide 26: ESG
ESG Deployment of EV for Transitioning to renewable last mile delivery energy - Deployed solar panels with capacity of 20 kW at Last mile delivery through EV expanded Corporate office to three states and exploring deployment in more states - Targeting deployment of 1 MW deployment in factories in FY
Slide 27: CSR
CSR Education of Healthcare for the Health Insurance for underprivileged girls underprivileged the Painter Community Continuing to provide Extending the health Extending education healthcare for the insurance to painter assistance & career guidance underpreviledged through community to the state of
Slide 28: Contents
Contents Financial Update - Standalone (Q1 FY25) - Consolidated (Q1 FY25) KPI Growth Drivers Sustainability initiatives Outlook 27 27
Slide 29: Outlook
Outlook 1 2 3 4 5 The Company Expecting the The A&P expense The EBITDA Apple Chemie expects to margins to expand for the entire fiscal margin% for FY25 expected to log continue to with the price hike is expected to is expected to high growth in outpace the & upcoming festive decline marginally incre
Slide 30: Thank You
Ny INDIGO Be surpreed! Thank You 29