Shalimar Paints Ltd · NSE:SHALPAINTS
Shalimar Paints — Q1 FY2024 Earnings Presentation
24 slides from Shalimar Paints's earnings presentation, Aug 17, 2023
Slide 1: Intimation to exchanges under Regulation 30 - Earnings Presentation
August 17, 2023 BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 1st Floor, New Trading Ring, Plot No. C/1, G- Block Rotunda Building, P.J. Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai - 400 001 Mumbai – 400051 BSE
Slide 2: Shalimar Paints Limited Earnings Presentation August 2023
Shalimar Paints Limited Earnings Presentation August 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shalimar Paints Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 4: Contents
Contents ➢ Company Overview ➢ New Initiatives ➢ Performance Snapshot 3
Slide 5: Company Overview
Company Overview 11,310 ₹ 127.2 31.7 % ₹ -3.02 Q1 FY24 Volume (KL) Revenue (Rs cr) Gross Margin (%) EBITDA (Rs cr) 22% YoY 14% YoY +460 (bps) Q1 FY23 9,270 ₹ 111.5 27.1 % ₹ -1.90 Volume (KL) Revenue (Rs cr) Gross Margin (%) EBITDA (Rs cr) 41,506 ₹ 492.8 27.0 % ₹ -7.54 FY2023 Volume (KL) Revenue (Rs
Slide 6: EBITDA walk through (EBITDA before growth investment & reported EBITDA)
EBITDA walk through ( EBITDA before growth investment & reported EBITDA) Rs.Cr -0.61 4.65 7.67 -5.16 -0.59 -1.31 -3.02 Q1 FY24 EBITDA ESOP incentive Investment in Investment in Provision for Total Reported EBITDA before growth to eomployees human resources supply chain Old Stocks investments 5
Slide 7: Product Performance
Product Performance Decorative Paints Industrial Paints Q1 FY24 Q1 FY23 FY2023 Q1 FY24 Q1 FY23 FY2023 8,099 6,675 28,966 3,211 2,595 12,540 Volume (KL) Volume (KL) Volume (KL) Volume (KL) Volume (KL) Volume (KL) 21% YoY 6% YoY 24% YoY 27% YoY ₹ 76 ₹ 71 ₹ 285 ₹ 50 ₹ 39 ₹ 191 Net Revenue (Rs cr) Net R
Slide 8: New Initiatives
SHALIMAR PAINTS New Initiatives
Slide 9: Capex Planned
Capex Planned Planned Capital Expenditure amounting to ~ Rs. 190 Crore “Going Ahead: Aiming to increase capacities, modernization, automation & productivity improvement." R & D center Capacity Modernization Automation augmentation enhancement "Modernization: Revamping "Bringing in the New: Using "Ex
Slide 10: New Products Launched Marketing Communication
New Products Launched Marketing Communication Single Pack GP Epoxy THINNER SUPPORTED BY POSM & CRM PRODUCT POSTER GPT – DEALER SCHEME COMMUNICATION
Slide 11: Q1 FY24: New Dealer performance
Q1 FY24 : New Dealer performance 646 11.95 Crs 9.4% CONTRIBUTION TO NET SALE NEW DEALERS SALE 646 17.67 9.40 11.95 378 334 4.67 4.61 1.38 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 New Dealer Additions Sales (in Crores) from new dealers Yield per dealer (in lacs) 10
Slide 12: Lakshya Club
LAKSHYA CLUB 2439 Dealer Enrolled 300 Cr Annual Business Commitment 67.3 crores done in Q1 78% BUSINESS Contribution in Q1
Slide 13: Category Saliency
Category Saliency Category Mix 120% 32% 100% Emulsions 03% 30% 80% 33% 36% 60% 70% 67% 33% 64% Solvents 03% 40% 35% 32% 20% 29% 0% 67% Industry LY Category Mix TY Category mix Water base 03% Benchmark Water Base Solvent Base
Slide 14: Our Strategy
Our Strategy PAINTER CONSUMER DEALER ACTIVATE OWN CONVERT
Slide 15: Activation: The Execution on Ground
THE EXECUTION ON GROUND DIGITAL TRADE TRANSFORMATION ACTIVATION VISIBILITY
Slide 16: Performance Snapshot
SHALIMAR PAINTS rerrormance snapsnot
Slide 17: Decorative Paints Performance
Decorative Paints Performance Decorative Paint performance 6% +36% Gross -3% Revenue 89 92 353 84 89 Rs. In Crs 260 Q1FY23 Q1FY24 Q4FY23 Q1FY24 FY22 FY23 Volume +21% +1% +6% (KL) 8,099 8,099 28,966 8,011 27,249 6,675 Q1FY23 Q1FY24 Q4FY23 Q1FY24 FY22 FY23 16
Slide 18: Industrial Performance
Industrial Performance Industrial Paints performance +28% Gross -9% +36% Revenue 50 55 191 Rs. In Crs 50 39 140 Q1FY23 Q1FY24 Q4FY23 Q1FY24 FY22 FY23 Volume 24% +27% -16% (KL) 12,540 3,211 3,824 2,595 3,211 9,850 Q1FY23 Q1FY24 Q4FY23 Q1FY24 FY22 FY23 17
Slide 19: Company Strategy - To Gain Market Share
Company Strategy - To Gain Market Share • Current market scenario – New players and large organizations are entering the segment which will make the market more crowded and change market market dynamics. • Our Strategy 1. Gain Market Share - To gain market share by investing more. The focus areas of
Slide 20: Decorative Paints: Strategy Going Ahead
Decorative Paints: Strategy Going Ahead Focus on areas Progress so far having significant presence ✓ Margin improvement: • Optimization of water & solvent-based paints • Margin improvement plan is in place Focus on smaller • No extra material addition Tier 3 & 4 towns and rural area ✓ New Product De
Slide 21: Positive outcome on financial performance
Positive outcome on financial performance REVENUE Improvement in Net Revenue +35.7% ✓ Net Revenue growth of 14% v/s last year largely contributed by 28% 492.8 growth in Industrial Segment and 7% in Decorative Segment ✓ Increase in the dealer network and number of depots across the country ✓ Increase
Slide 22: Cost Trend
Cost Trend Other Expense Cost’ % to Net Sales 90.3 OTHER EXPENSE 73.9 73.4 72.9 68.3 70.6 COGS 27.2 21.2 19.3% 21.7% 19.4% 18.3% % to Net Sales FY22 FY23 Q1 FY23 Q1 FY24 Rs. In Crs FY22 FY23 Q1 FY23 Q1 FY24 53.4 17.2 22.3 EMPLOYEE COST 41.5 13.7% 12.0 INTEREST 10.9% 4.4 4.0 15.9 11.4% 10.8% Rs. In C
Slide 23: Consolidated Profit & Loss Statement Q1 FY24
Consolidated Profit & Loss Statement Q1 FY24 Particulars (Rs. Crs) Q1FY24 Q1FY23 Q4FY23 Revenue from Operations 125.6 109.9 135.8 • Revenue: Other Income 1.6 1.5 3.5 o Company has reported revenue growth of 14% from previous year which is Q1FY23. Total Revenue 127.2 111.4 139.3 o During this quarter
Slide 24: Thank You
Thank You Company : Investor Relations Advisors : Shalimar Paints Limited Orient Capital (a division of Link Group) CIN: L24222HR1902PLC065611 Mr. Ronak Jain/Mr. Irfan Raeen Mr. Davinder Dogra – Chief Financial Officer +91 98209 50544/+91 97737 78669 davinder.dogra@shalimarpaints.com ronak.jain@link