Berger Paints India Limited · NSE:BERGEPAINT
Berger Paints India — Q2 FY25 Earnings Presentation
23 slides from Berger Paints India's earnings presentation, Nov 5, 2024
Slide 1: Berger Paints India Limited Earnings Update Call, Q2 FY25
Berger Paints India Limited Earnings Update Call, Q2 FY25 November 5, 2024
Slide 2: Q2 FY25 Performance
KO Q2° FY25 Performance : — ——_=—
Slide 3: Q2FY25: Snapshot
Q2FY25 : Snapshot • Top line remained almost flat on YoY basis, impacted by extended monsoon and flooding in some key markets. However, some traction was seen at the fag end of the quarter • We believe we have continued to gain market share in Q2 • Product price increase of about 2.3% undertaken in
Slide 4: Standalone: Q2 FY25 Topline Performance
Standalone : Q2 FY25 Topline Performance Growth % • The company recorded single digit volume growth Volume impacted by 7.8 % • Unusually extended monsoon and flooding in 3.6% many of our key markets like Andhra, Kerala, West Bengal, Gujrat & Maharashtra • Sales picked up towards the last part of Sep
Slide 5: Standalone: Sustained growth trend
Standalone : Sustained growth trend H1FY25 : Volume Sales CAGR% 19.5 9.8 14.5 2 yrs 3 yrs 4 yrs H1FY25 : Value Sales CAGR% 22.0 Maintained strong 13.8 3.8 compounded growth consistently over the past 3/4 years 2 yrs 3 yrs 4 yrs
Slide 6: Gross Margin
Gross Margin Highest Gross Margin in last 10 quarters 40.3 40.3 40.4 40.0 39.6 39.4 39.3 35.3 34.5 33.8 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25
Slide 7: Standalone Q2 FY25: Operating Profit
Standalone Q2 FY25 : Operating Profit Gross Margin expanded YOY in spite of the price decrease impact on the back of Growth % • Improvement in product mix in the quarter • Double digit volume growth in Premium & Luxury products • Flat / degrowth in mass products like Putty, Distemper, (5.4)% Primer
Slide 8: Standalone: Operating Margin % Movement
Standalone : Operating Margin % Movement 18.8 17.2 16.5 16.7 15.6 15.8 15.0 14.5 13.4 12.9 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25
Slide 9: Financial Results – Standalone Q2 FY25
Financial Results – Standalone Q2 FY25 ₹ Crores Q2 FY25 % Q2 FY24 % Growth % Total income from operations 2,430.70 2,439.83 -0.4 Material Cost 1,448.48 59.6 1,462.83 60.0 Employee Cost 165.83 6.8 145.30 6.0 Other expenses 432.95 17.8 428.58 17.6 PBDIT (Excluding Other Income) 383.44 15.8 403.12 16.5
Slide 10: Financial Results – Standalone H1 FY25
Financial Results – Standalone H1 FY25 ₹ Crores H1 FY25 % H1 FY24 % Growth % Total income from operations 5,237.01 5,179.59 1.1 Material Cost 3,153.37 60.2 3,124.10 60.3 Employee Cost 311.34 5.9 271.54 5.2 Other expenses 905.16 17.3 867.00 16.7 PBDIT (Excluding Other Income) 867.14 16.6 916.95 17.7
Slide 11: Decorative Business: Q2FY25
Decorative Business : Q2FY25 o Decorative business recorded single digit volume growth effected by the weather conditions o Premium segment did well in the quarter o CC, Waterproofing & Wood coatings products had a robust performance o Mass consumption products had flat / negative growth o Aggressiv
Slide 12: Differentiated products had double digit growth
Differentiated products had double digit growth
Slide 13: Expanding range of Construction Chemical products
Expanding range of Construction Chemical products & PU RaefkKoat
Slide 14: Media Coverage
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Slide 15: Urban Initiative
Urban Initiative • Additional Manpower recruited and new team is in place to increase focus in the urban markets • Various strategic changes – Owned store/Franchise store/Project work, have been initiated to improve brand visibility and penetration • Results can be seen in the upcoming quarters
Slide 16: Industrial Business: Q2FY25
Industrial Business : Q2FY25 Protective Coating business continued its good performance with a double digit volume growth and mid single digit value growth for the quarter Automotive, General Industrial & Powder Coatings business line had a flat growth on the back of suppressed demand from Two wheel
Slide 17: Net Cash
Net Cash Jun’24 : Rs 692 crs Mar’24 : Rs 341 crs Sep’24 : Rs 242 crs Net cash position moderated on account of dividend payment in the quarter
Slide 18: Financial Results - Consolidated Q2FY25
Financial Results- Consolidated Q2FY25 ₹ Crores ₹ Crores Q2FY25 % Q2FY24 % Growth % Total income from operations 2,774.61 2,767.30 0.3 Material Cost 1,617.54 58.3 1,629.41 58.9 Employee Cost 221.13 8.0 190.24 6.9 Other expenses 501.76 18.1 474.00 17.1 PBDIT (Excluding Other Income) 434.18 15.6 473.6
Slide 19: Financial Results - Consolidated H1FY25
Financial Results- Consolidated H1FY25 ₹ Crores ₹ Crores H1FY25 % H1FY24 % Growth % Total income from operations 5,865.62 5,796.81 1.2 Material Cost 3,475.99 59.3 3,452.50 59.6 Employee Cost 413.35 7.1 357.14 6.2 Other expenses 1,019.69 17.4 956.77 16.5 PBDIT (Excluding Other Income) 956.59 16.3 1,0
Slide 20: Performance - Consolidated: Q2FY25
Performance - Consolidated: Q2FY25 Company’s overseas subsidiary, Bolix S.A, Poland had a robust topline growth in the quarter. However, profitability suffered on account of certain one off costs on project business. Company’s overseas subsidiary, BJN Nepal had another quarter of degrowth both o
Slide 21: Business Outlook
Business Outlook • Decorative business likely to show better growth in H2 on the back of • Uptick in demand sentiment and channel inventory reduction as presently seen • Volume - value gap expected to decline in Q3 through price increases implemented in Q2 coupled with the waning of price decrease i
Slide 22: Thank You
Thank You
Slide 23: 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.