Kansai Nerolac Paints Limited · NSE:KANSAINER
Kansai Nerolac Paints — Q1 FY2023-24 Earnings Presentation
22 slides from Kansai Nerolac Paints's earnings presentation, Aug 3, 2023
Slide 1: Exchange filing cover letter for Q1 FY2023-24 investor presentation
Page 1 of 22 3rd August, 2023 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 - 400051. Sub.: Q1 FY 2023-24 Fi
Slide 2: Q1 2023-24 Investor Presentation
Page 2 of 22 Q1 2023-24 Investor Presentation 4th August 2023 All rights for this presentation are reserved with Kansai Nerolac Paints Limited.
Slide 3: Disclaimer
Page 3 of 22 Disclaimer 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 22 1 Nerolac Story 2 Business Environment 3 Business Update 4 Financial Performance 5 Risk and outlook All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 4th August 2023
Slide 5: 1. Nerolac Story
Page 5 of 22 1. Nerolac Story All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 4th August 2023
Slide 6: Purpose, Vision and ESG
Page 6 of 22 Purpose: Create environments for a healthy and beautiful future. Vision: We design solutions that protect, inspire and touch lives everyday Beauty & Protection ESG: Water Neutral, Emission reduction, Green energy Investor Presentation All rights for this presentation are reserved with K
Slide 7: Brand Nerolac
Page 7 of 22 BRAND INNOVATOR’S EXPERTISE AND NEROLAC: SPIRIT: LEGACY: JAPANESE TECHNOLOGY LEADERS IN INDUSTRIAL 2nd STRONGEST BRAND THE NEROLAC JINGLE UNIQUE PRODUCTS: IMPRESSIONS KASHMIR EXCEL EVERLAST 12 PERMA NODAMP+ PERMA CRYSTALSEAL Investor Presentation All rights for this presentation are res
Slide 8: 2. Business Environment
Page 8 of 22 2. Business Environment All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 4th August 2023
Slide 9: Business Environment
Business Environment Page 9 of 22 Q1 2023-24 Rural Demand Good Demand in Automotive Infrastructure Growth Geopolitical Challenges Downtick Crude Oil Price Forex Volatility Chip Shortage Fluctuation Investor Presentation 4th August 2023 All rights for this presentation are reserved with Kansai Nerola
Slide 10: 3. Business Update
Page 10 of 22 3. Business Update All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 4th August 2023
Slide 11: Marketing and Media Campaigns
Marketing andPage Media 11 of 22 Campaigns Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 4th August 2023
Slide 12: Marketing and Media Campaigns
Marketing andPage Media 12 of 22 Campaigns Television Commercials Co-Associate Sponsor and Presence in Entertainment Channel Investor Presentation All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 4th August 2023
Slide 13: Decorative Highlights
Decorative Highlights Page 13 of 22 ▪ New product saliency on an uptick New Products Introduced Impressions Kashmir Impressions Kashmir ▪ Robust growth in New Business High Sheen High Matt ▪ Good Growth in Project Business ▪ Increase in saliency of Paint+ Products. ▪ Introduced Crystalline Technolog
Slide 14: Industrial Highlights
Industrial PageHighlights 14 of 22 Automotive Passenger Vehicle Two-Wheeler Commercial Vehicle Tractor ▪ Good growth in the segment ▪ Moderate growth in the segment ▪ Robust demand from M&HCV but ▪ Production drop due to high ▪ Continued our focus on ▪ Gained Market share Growth Subdued due to low L
Slide 15: ESG
ESG Page 15 of 22 • Completed the S&P Global Corporate Sustainability Assessment 2023 • Completed the Carbon Disclosure Project (CDP) for Climate Change & Water Security 2023 All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation th
Slide 16: CSR Initiatives
CSR Initiatives Page 16 of 22 Skill Development Promoting Education Distributed Anganwadi Kits to newly started Model “Anganwadi centres” near Jainpur Plant in Kanpur. The initiative was “Basic Training in Painting” for Women was held at appreciated by honorable Governor of Uttar Pradesh Lucknow Pre
Slide 17: 4. Financial Performance
Page 17 of 22 4. Financial Performance All rights for this presentation are reserved with Kansai Nerolac Paints Limited. Investor Presentation 4th August 2023
Slide 18: Financials Standalone Q1 23-24
Financials Standalone Page 18 of 22 Q1 23-24 Q1 % to Q1 % to Rs. In Millions 2022-23 Net Sales 2023-24 Net Sales Net Revenue 19,446 20,712 Material Cost 13,629 70.1 13,400 64.7 Operating Expenses 3,261 16.8 3,973 19.2 PBDIT 2,556 13.1 3,339 16.1 PBT Before Exception Item 2,184 11.2 3,046 14.7 Except
Slide 19: Financials Consolidated Q1 23-24
Financials Consolidated Page 19 of 22 Q1 23-24 Q1 % to Q1 % to Rs. In Millions 2022-23 Net Sales 2023-24 Net Sales Net Revenue 20,514 21,568 Material Cost 14,379 70.1 13,961 64.7 Operating Expenses 3,584 17.5 4,292 19.9 PBDIT 2,550 12.4 3,315 15.4 PBT Before Exception Item 2,083 10.2 2,949 13.7 Exce
Slide 20: Subsidiaries
Subsidiaries Page 20 of 22 Nepal Bangladesh Sri Lanka Sri Lanka ▪ Poor market demand and liquidity • Foreign exchange crises continues • Sales in Q1 grew . constraints continued. leading to delay in LCs creating • Exchange rate is stabilising ▪ The economy is still reeling under the tough market con
Slide 21: Risks and Outlook
Risks and Outlook Page 21 of 22 Risk ▪ Volatility in Forex and crude ▪ Uncertain Geopolitical conditions Outlook ▪ Growth momentum in Automotive and Performance coatings is expected to continue ▪ Favourable monsoon and a longer festival season is likely to see Decorative demand improve closer to the
Slide 22: Thank you
Page 22 of 22 Thank you All rights for this presentation are reserved with Kansai Nerolac Paints Limited. 21
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