Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Q1 FY2022 Earnings Presentation
23 slides from Asian Paints's earnings presentation, Jul 20, 2021
Slide 1: Exchange filing cover letter for investor presentation
APL/SEC/22/2021-22/156 20th July, 2021 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C/1, Phiroze Jeejeebhoy Towers, Block G, Bandra – Kurla Complex, 25th Floor, Dalal Street, Bandra (East), Fort, Mumbai – 400 001 Mumbai – 400 051 Scr
Slide 2: Investor Conference Q1 FY2022 Results
ore) asianpaints Investor Conference Q1- FY2022 Results
Slide 3: Delivering joy since 1942
Deli eri g joy si ce 94 …. We exist to Beautify, Preserve, Transform all Spaces and Objects, bringing happiness to the World!
Slide 4: Disclaimer
Disclaimer This communication, except for the historical information, may contain statements which reflect the Ma age e t’s urre t ie s a d esti ates a d ould e o strued as for ard looki g statements. The future involves certain risks and uncertainties that could cause actual results to differ mater
Slide 5: Market Conditions – Continued momentum from last quarter
Market Conditions – Continued momentum from last quarter i.e. Q4 FY20-21, it essed i April’ . May’ i pacted ith nd a e. Ju e’ it essed a uptick with gradual withdrawal of restrictions. Overall, strong volume growth trend maintained as demonstrated by the 2/3 year compounded growth rates Decorative B
Slide 6: Strong volume growth trend maintained despite May impact
Despite the i pact i May’ , stro g olu e gro th tre d ai tai ed as demonstrated by the 3 year compounded growths since Q2 FY20-21 Decorative Business (India) – Quarterly Volume Trend Volume in KL 200 22.7%* 17.9%* 180 15.4%* 160 13.5%* 140 120 100 80 60 40 20 * 3 year - compounded Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: APL Standalone – Quarterly Gross Margin Trend
Material Prices seeing steep inflation since Q3 FY20-21. Q4 FY21 saw about 8%-10% inflation from previous quarter and material prices have seen a further inflation, of 13%-15% in Q1 FY22. Price increases implemented across businesses negating only a part of this impact. APL Standalone – Quarterly Gr
Slide 8: Key Business Update – Domestic Decorative Business
Key Business Update – Domestic Decorative Business ❖ Growth this time led by T1/T2 centers unlike Q1 last year when T3/T4 grew faster given severe lockdown in T1/T2 ❖ South impacted given protracted restrictive conditions over May’21 & June’21 ❖Economy and the Luxury range leading the growth ❖ Robus
Slide 9: New Products – Q1 FY21-22
New Products – Q1 FY21-22 ALL Protek Fire Retardant Paint Royale Glitz : Teflon With Luxury AP Woodtech Ingenio Smart Care Tile Grout
Slide 10: Key Business Update – Domestic Decorative Business
Key Business Update – Domestic Decorative Business ❖ Network Expansion & Evolution continues ❖ Lots of new retailers with Colour Worlds added in Q1 to enhance the Rurban footprint ❖ 6 new Colour Ideas stores opened ❖ 18 Beautiful Homes Stores functional; another 15 in pipeline ❖The Home Décor busine
Slide 11: Nilaya by Sabyasachi
Nilaya by Sabyasachi ❖ New cutting-edge designs from Sabyasachi ❖ Draping the Walls like a Sari
Slide 12: An Alliance with Pure
An Alliance with Pure Ador | Royale | Nilaya - Furnishings
Slide 13: Designer Tiles | AIDs | BH Stores
Designer Tiles | AIDs | BH Stores ❖ New Category launched : Strong response from the AID segment ❖ Spreading the distribution to Premium Stores ❖ Anti Skid, 3D, Anti Stain, Anti Crack, Sheen level variants
Slide 14: Services – A Key Differentiator; Unique Propositions
Key Business Update – Domestic Decorative Business Services – A Key Differentiator; Unique Propositions ❖ Cutting edge, inspiring Décor service ‘Beautiful Homes Service’ gaining traction ❖ About 100 sites booked in Q1 ❖ Safe Painting & San Assure services providing access to customers
Slide 15: Key Business Update – International Business
Key Business Update – International Business ❖ Interrupted business conditions hurt the good Revenue momentum of last few quarters 266 ❖ International Portfolio delivered 50%+ revenue 119% 40% 13% 185 140 132 6% growth over last year 123 121 ❖ Growth led by Asia & Middle East 26 25 ❖ Africa impacted
Slide 16: Key Business Update – Industrial Business
Key Business Update – Industrial Business ❖ PPG-AP PPG - AP ❖ Revenue growth coming off an extremely low 256 207% base last year 83 ❖ Refinish Business faced challenges with -6 -38 Revenue PBT bodyshops under timing restrictions CY LY ❖ AP-PPG ❖ Robust performance in Industrial Liquid Paints AP - PP
Slide 17: Key Business Update – Home Improvement Business
Key Business Update – Home Improvement Business ❖ Kitchen Business ❖ Full Kitchen solutions leading growth Kitchen Business 152% 66 ❖ New full kitchen dealer openings, luxury 26 offerings supporting growth -8 -14 ❖ Impact of Covid restrictions in the key Southern Revenue PBT CY LY states impacted Co
Slide 18: Summary – Standalone Financials
Summary – Standalone Financials Quarter 1 4,786 95.6% 67% 1,893 135.9% 88.9% 136.6% 882 795 596 Revenue Gross Contribution PBDIT * PBT PAT CY LY ❖ Steep material inflation leading to contraction in Gross Contribution margin by 678 bps ❖ Improved scale over LY base and controlled overheads arresting
Slide 19: Summary – Consolidated Financials
Summary – Consolidated Financials Quarter 1 5,585 91.1% 64.1% 2,146 88.7% 161.5% 154.6% 914 779 574 Revenue Gross Contribution PBDIT* PBT PAT CY LY ❖ Steep material inflation leading to contraction in Gross Contribution margin by 631 bps ❖ Improved scale over LY base and controlled overheads arresti
Slide 20: Covid – Safety Precautions, Vaccinations, Stakeholder Support
Covid – Safety Precautions, Vaccinations, Stakeholder Support ❖ Safety precautions – distancing, sanitization procedures in place at all manufacturing facilities, sales warehouses, offices ❖ Strong push on getting employees vaccinated across businesses / locations – About 90% of eligible employees a
Slide 21: Working for Sustainable Future
Working for Sustainable Future 184.5% Water Replenishment in FY21 76% Water Replenishment in Q1 FY22 57.2% Renewable Energy consumption out of total 75.9%* reduction Renewable content increased in 3 large- in Specific effluent generation volume products from 20% in FY20 to 56%* reduction 60% in FY21
Slide 22: Looking Forward
Looking Forward ❖ Demand outlook looks positive, especially with 2nd wave abetting ❖ Good monsoon forecast would further support demand, especially from rural sector ❖Long Diwali season would help Sept-Oct 21 Retail ❖ Critical to avoid 3rd wave / any further waves to retain full normalcy ❖ Some key
Slide 23: Thank You
Thank You