Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q3 FY2024 Earnings Presentation
29 slides from Asian Paints's earnings presentation, Jan 17, 2024
Slide 1: Regulation 30 intimation of investor presentation
APL/SEC/32/2023-24/71 17th January 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: Intimati
Slide 2: Investor Conference Q3 - FY2024 Results
oe asianpaints Investor Conference Q3 - FY2024 Results \\
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): Double-Digit Volume Growth in Q3
Decorative Business (India) Double – Digit Volume Growth in Q3, Supported by Festive Demand 14.9% 4 Yr CGR 14.5% 4 Yr CGR Q3 FY'23 12% Q3 FY'24 5.5% 0% 1.2% Volume Gr% Value Gr% 9M FY'23 9M FY'24 15.4% 4 Yr CGR 15.6% 4 Yr CGR 22.6% 13% 9% 4.6% Volume Gr% Value Gr% 4
Slide 6: Overall Domestic Paints: Industrial Continued to Grow Well
Overall Domestic Paints: Industrial Continued to Grow Well Decorative Plus Industrial Paints 14.7% 4 Yr CGR 14.6% 4 Yr CGR Q3 FY'23 12% Q3 FY'24 6.1% 3.0% 0% Volume Gr% Value Gr% 9M FY'23 9M FY'24 15.4% 4 Yr CGR 15.3% 4 Yr CGR 23.5% 14% 9% 5.3% Volume Gr% Value Gr% 5
Slide 7: Sustained Double-Digit Volume Growth Trajectory
Sustained Double-Digit Volume Growth Trajectory on 4 Year Compounded Growth Rate Basis Decorative Business (India) *20.3% *17.5% *14.8% *15.9% *17.5% *14.7% *14.9% 200 *15.2% 180 160 140 120 100 80 60 40 20 - Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3
Slide 8: Decorative Business (India) Tracking our Growth Drivers
Decorative Business (India) Tracking our Growth Drivers ❑ Double-digit volume growth across urban & rural ❑ Maintained strong growth in Smartcare markets; early signs of recovery in rural markets Waterproofing ▪ Over 4 years, both rural & urban centers growing equally well with similar double-digit
Slide 9: Creating Differentiation in the Market
Decorative Business (India) Creating Differentiation in the Market ❑ Safe Painting Services – rechristened as the Beautiful Homes Painting Service in over 650 towns in India. Globally the largest Painting Service by any player ❑ Mechanization : With 23 Colour academies, have introduced mechanization
Slide 10: Creating Differentiation in the Market
Decorative Business (India) Creating Differentiation in the Market ❑ Innovation through new and differentiated products - All product categories have product chemistries and product propositions which no other company offers ❑ Products launched are ‘New to World’ and hence unique propositions First
Slide 11: Building Brand – Asian Paints
Decorative Business (India) Building Brand – Asian Paints ❑Reinforcing the Proposition of ‘Har Ghar Kuch Kehta Hai : Where the Heart is’ ❑Creating Innovative Propositions to stay ahead in Market : Anti Crack, Waterproofing on Damp Surfaces, Creating the world of Surface Décor through Interior and Ex
Slide 12: Where the heart is campaign
9 where the heart is Karan pan © where the heartis 4 9 where the heartis Sania MitZa's HOME TO! Meee. 2 o | where the m heartis a
Slide 13: Har Ghar Kuch Kehta Hai | Mera Wala Mood
Asian Paints Har Ghar Kuch Kehta Hai | Mera Wala Mood
Slide 14: World Braille Day art museum initiative
On World Braille Day, we at Asian Paints and St+art India Foundation are proud to present India's first-of-its-kind Art Museum created at the Rajasthan Netraheen Kalyan Sangh School. The initiative aims at inspiring and enriching young minds with the transformative power of tactile artwork there by
Slide 15: Home Décor Business
Home Décor Business
Slide 16: No. 1 in Decorative Lighting
O No. 1 Integrated U Home Décor R No. 1 in Player ~ 4% of Decorative H Lighting Decorative O 54 Beautiful Revenue M Homes Stores – E One Stop Home Décor D No. 2 in Fabric Destinations No. 1 in E & Furnishing Wallcovering & C Textures O Collaborations R with Sabyasachi, Jaipur Rugs, Sarita F Handa O
Slide 17: Home Décor: Sizing-up Our Home Décor Offerings
Home Décor: Sizing-up Our Home Décor Offerings Kitchen, Kitchen Hardware & Bath & Sanitary Designer and General Tiles Wardrobes and Vanities Fabric and Furnishing Components Designer Wall Paper Furniture Rugs Lighting Solutions uPVC Windows and Doors Beautiful Home Stores: 54 stores now functional B
Slide 18: Partnering to Deliver Beautiful Homes
Partnering to Deliver Beautiful Homes through 1st of its Kind Customer Experience Inspiring through ‘WoW’ Looks, Selection Enhanced by Purchase & Aspirational Stories Visualization Execution
Slide 19: New Launches in Home Décor
New Launches in Home Décor Launched campaign introducing Royale Wardrobes designed keeping in mind Lotus 25 Hydrophobic Faucet enabling urban sensibilities of homeowners spotless bathrooms “Some spots are desirable while some are not” 18
Slide 20: Strengthening Integration with Beautiful Homes Network
Focused on Strengthening the Integration with our Beautiful Homes Network Home Décor Business Kitchen Business ❑ Flat revenue post 4 quarters of de-growth Q3 FY'24 11% 9M FY'24 ▪ Efforts centered around expansion of reach 293 ❑ Strong focus on driving operational efficiencies ▪ Resulted in PBT break
Slide 21: White Teak & Weatherseal – Adding Range to Home Décor
White Teak & Weatherseal – Adding Range to our Home Décor Offerings White Teak (Offering Decorative & Designer Lights) Home Décor Business ❑ Net Sales of Rs. 34 crs in Q3 with 18% growth Weatherseal (uPVC Windows and Doors) ❑ Net Sales of Rs. 14 crs in Q3, more than doubling revenue YoY Benefitting
Slide 22: International Business
International Business " Be asianpaints 2 Spaampees 3 Opasianpaints 4 Nepal Bangladesh Solomon Islands aN Indonesia ll Vanuatu Bahrain Fiji (2) o Qatar Eovee Oman °@ uAE Sri Lanka La Ethiopia | i HT Samoa ganisco SF scibG © 7 Sapco 5
Slide 23: International Business Improved Profitability
International Business Improved Profitability despite Macro-Economic Headwinds 1.8% Revenue ❑ Flat growth in INR terms; constant currency growth of 5.2% 2,249 Q3 FY'24 9M FY'24 15% 13% ▪ Good growth in Middle East & Africa 6% 5% 11% 10% 16% 13% ▪ Subdued performance in Asian markets: 779 747 882 ⁻ L
Slide 24: Industrial Business: Robust Growth in Revenue & Profit Margins
Robust Growth in Revenue & Profit Margins PPGAP Industrial Business ❑ Double-digit revenue growth driven by Refinish & 10% Q3 FY'24 Auto OEM segments 9M FY'24 1,543 12% 59% ❑ Moderating raw material prices led to improvement 40% 576 in margins 287 128 ▪ PBT margin at 22.2% vs. 17.8% last year Revenu
Slide 25: Soft Raw Material Environment Driving Gross Margins
Soft Raw Material Environment & Work on Sourcing, Formulation Efficiencies Driving Gross Margins Material Inflation Material Inflation Material Inflation Material Deflation ~4% Material Inflation ~6% ~2% Material Deflation Material Deflation Material Deflation Material Deflation ~0.2% Price Increase
Slide 26: Summary Standalone Financials
Summary Standalone Financials Q3 ❑ Net Sales growth of 5.2% led by double – digit volume Q3 FY24 Q3 FY23 5.2% growth 7,883 ❑ ~550 bps improvement in gross margin to 44.2% driven by 20% 3,484 27% 33% softening raw material prices and sourcing & formulation 33% 1,897 1,914 1,444 efficiencies ❑ PBDIT m
Slide 27: Summary Consolidated Financials
Summary Consolidated Financials Q3 Q3 FY24 Q3 FY23 ❑ Net Sales growth of 5.4%; strengthened by APPPG 5.4% business 9,075 ❑ ~510 bps improvement in gross margin to 43.4% driven 19% 28% by robust profitability in Industrial Business 3,941 33% 34% 2,056 1,968 1,475 ❑ PBDIT margin improved to 22.7% vs.
Slide 28: Outlook for Q4FY24
Outlook for Q4FY24 ❑ Expect to sustain the Q3FY24 volume momentum ❑ Satisfactory monsoon coupled with uptick in Government spending and moderating inflation likely to bring in positivity for rural economy ❑ Softer raw material price trend witnessed in the first nine months to persist in Q4FY24 ❑ Rem
Slide 29: Thank You
Thank You 28