Berger Paints India Limited · NSE:BERGEPAINT
Berger Paints India — Q4 FY24 Earnings Presentation
32 slides from Berger Paints India's earnings presentation, May 15, 2024
Slide 1: Earnings Update Call, Q4 FY24
Berger Paints India Limited Earnings Update Call, Q4 FY24 May 15, 2024
Slide 2: FY24: Year of milestones
FY24 : Year of milestones 10000 cr 1000 cr Standalone Standalone Topline 100 PAT Years in India
Slide 3: Q4FY24 Performance
Q4FY24 Performance
Slide 4: Topline performance: Q4FY24 - Standalone
Topline performance : Q4FY24 - Standalone • Healthy double digit volume growth registered for the Q4 FY24 Growth% quarter 13.9 • Value growth moderated on account of • Impact of price reduction. Value sales impacted by 2.7 about 5% • No price reduction in Luxury category - Dealers destocked Luxury p
Slide 5: Operating Profit performance: Q4FY24 - Standalone
Operating Profit performance : Q4FY24 - Standalone Operating profit for the quarter showed a Q4 FY24 Growth% negative growth on the back of 9.1% • One off effect of subsidy received included in operating income in Q4FY23 • Negative operating leverage on account of fixed costs Q4FY24 • Incremental op
Slide 6: Financial Results – Standalone Q4 FY24
Financial Results – Standalone Q4 FY24 Rs Crores % to Total % to Total Q4 FY24 Income Q4 FY23 Income Growth % Total income from operations 2249.1 2,189.3 2.7 Material Cost 1343.7 59.7 1,321.3 60.4 Employee Cost 129.0 5.7 115.4 5.3 Other expenses 451.3 20.1 410.1 18.7 PBDIT (Excluding Other Income) 3
Slide 7: Standalone Gross Margin (%) – Scaling new heights
Standalone Gross Margin (%) – Scaling new heights 40.0 40.3 40.3 39.6 39.4 38.3 36.0 35.3 34.5 33.8 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Sustained high Gross Margin aided by low value inventory and some formulation efficiencies
Slide 8: Standalone - Operating Margin Trajectory
Standalone - Operating Margin Trajectory 18.8 16.3 16.5 16.7 15.7 15.6 15.2 15.0 14.5 13.4 12.9 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Operating margin lower on account of low value sales growth and incremental advertisement expenses (Advertisement expenses incr
Slide 9: Performance - Consolidated: Q4 FY24
Performance - Consolidated: Q4 FY24 Value Sales Growth% 3.1 2.7 Consolidated topline and profitability growth outperformed Standalone on the back of strong topline performance and consistent profit growth of most of the subsidiaries other than BJN Nepal STANDALONE CONSOLIDATED
Slide 10: Financial Results - Consolidated Q4FY24
Financial Results- Consolidated Q4FY24 Rs Crores % to Total % to Total Q4FY24 Income Q4FY23 Income Growth % Total income from operations 2,520.3 2,443.6 3.1 Material Cost 1,495.4 59.3 1,470.2 60.2 Employee Cost 174.4 6.9 154.7 6.3 Other expenses 499.6 19.8 450.0 18.4 PBDIT (Excluding Other Income) 3
Slide 11: Performance - Consolidated: Q4FY24
Performance - Consolidated: Q4FY24 Company’s overseas subsidiary, Bolix S.A, Poland recorded a quarter of double- digit topline growth aided by better performance in its UK operations and robust profitability growth helped by a sharp expansion in operating margin. The company also achieved a const
Slide 12: FY24 Performance
FY24 Performance
Slide 13: Key Achievements: FY24
Key Achievements: FY24 Standalone India Operating operations profit gained growth Market Share 24.2 % over FY23 Consolidated Company Operating turns profit Net Cash growth Positive 25.2%
Slide 14: Business highlights: FY24 - Standalone
Business highlights : FY24 - Standalone FY24 Growth % • Double digit volume growth for the year 24.2 • Value growth moderated on account of product price reduction • Strong double digit profitability growth on YoY 11.6 basis. Operating margin increased by 250 bps over previous year 5.6 • Decorative
Slide 15: FY24 - Trajectory: Consistent Growth
FY24 - Trajectory Consistent Growth CAGR : Standalone FY24 : Volume Sales CAGR% 16.4 15.4 13.7 2 yrs 3 yrs 4 yrs Maintained double-digit compounded growth FY24 : Value Sales CAGR% consistently over the past 18.4 2/3/4 years 13.7 15.1 2 yrs 3 yrs 4 yrs
Slide 16: Financial Results – Standalone FY24
Financial Results – Standalone FY24 Rs Crores % to Total % to Total FY24 Income FY23 Income Growth % Total income from operations 10,002.9 9,470.6 5.6 Material Cost 6,003.3 60.0 6,087.1 64.3 Employee Cost 537.3 5.4 458.1 4.8 Other expenses 1,790.7 17.9 1,579.5 16.7 PBDIT (Excluding Other Income) 1,6
Slide 17: Financial Results - Consolidated FY24
Financial Results- Consolidated FY24 Rs Crores % to Total % to Total FY24 Income FY23 Income Growth % Total income from operations 11,198.9 10,567.8 6.0 Material Cost 6,646.0 59.3 6,730.5 63.7 Employee Cost 713.0 6.4 609.2 5.8 Other expenses 1,978.6 17.7 1,740.9 16.5 PBDIT (Excluding Other Income) 1
Slide 18: Decorative Business: FY24
Decorative Business : FY24 o Decorative business recorded strong volume growth and showed resilience in spite of high inflation and extended monsoon o Strong traction in economy segment impacted value growth o Construction chemical & waterproofing business had a stellar performance o Aggressive Netw
Slide 19: Consistent Top Performing Products – Leaders in the category
Consistent Top Performing Products – Leaders in the category
Slide 20: New products introduced during the year
New products introduced during the year
Slide 21: Digital Initiatives
Digital Initiatives Cloud based Portal for better Salesforce customer Engagement & 360 Implementation in all degree view warehouses for better working WMS capital management and customer service App designed to find perfect My Colour AI App colour schemes for new/repainting purpose Digital tracking
Slide 22: Industrial Business: FY24
Industrial Business : FY24 Protective Coating Automotive and Powder Coatings business continued General Industrial business line also its market leadership business had an showed uptick over with consistent improved previous year with growth trajectory performance on the significant and substantial
Slide 23: Notable Endeavors in Industrial Realm
Notable Endeavors in Industrial Realm Mumbai Coastal Bridge ITPO - Bharat Mandapam Pipe Coating Vande Bharath
Slide 24: Notable Endeavors in Industrial Realm
Notable Endeavors in Industrial Realm HRRL Rajasthan Refinery Khurja Super Thermal Power Reliance New Energy PV Solar Lucknow Adani Airport
Slide 25: Manufacturing Capacity
Manufacturing Capacity o Present capacity – 1.27 mn MT Jammu o Brown field expansions were carried out Sandila at some of the manufacturing units Surajpur Nalbari Sikandrabad Naltali o Work progressing at Panagarh, West Bengal VVN Howrah Pune Rishra o Land acquisition completed at Khurdah, Orissa Go
Slide 26: Net debt - Standalone: Promises kept
Net debt -Standalone : Promises kept Mar’23 461 cr Jun’23 68 cr Attained Net cash Sep’23 324 cr positive position as guided at the -56 cr Dec’23 beginning of FY24 -341 Mar’24 cr
Slide 27: Rewarding Shareholders consistently: Dividend trajectory
Rewarding Shareholders consistently : Dividend trajectory (%) 350* 310 320 280 220 180 190 165 175 125 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 * Final dividend recommended by the Board
Slide 28: Sustainability in Action: ESG Initiatives
Sustainability in Action : ESG Initiatives GREEN ENERGY : WOW : Carbon footprint Waste reduction & reduction recycling Project JAL : STREE SHAKTI : Water recycling & Women Empowerment Rain water Harvesting 4R policy : Safety First : Reduce, Re-use, Workplace safety Recycle and and health Recreate
Slide 29: Solar strides / Electric rides
Solar strides / Electric rides New Initiatives : FY25 Project Urja Shakti Charging Ahead – The EV Story Roof top Solar Panel installed in all Introduced E-vehicles for last mile delivery manufacturing locations
Slide 30: Project JAL: Saved 100,000,000 Ltrs
Project JAL Saved 100,000,000 Ltrs Reduction in water intake in FY24 – 20.4% Reduction in ETP load – 16% Enough to quench thirst of 100,000 people for whole year.
Slide 31: Business Outlook
Business Outlook • Decorative business expected to maintain double digit volume growth for Q1 and FY25 with a slightly lower value growth. • Normal monsoon likely to propel rural demand. Markets expected to pick up second quarter onwards post general election. • Industrial business expected to do we
Slide 32: 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.