Berger Paints India Limited · NSE:BERGEPAINT
Berger Paints India — Q2 FY23 Earnings Presentation
25 slides from Berger Paints India's earnings presentation, Nov 10, 2022
Slide 1: Exchange filing cover letter for Q2 FY23 presentation
10th November, 2022 STOCK. EXG/ AG/ 2022-23 The Corporate Relationship The Listing Department Listing Department Department National Stock Exchange of The Calcutta Stock BSE Limited, India Limited Exchange Ltd. 1st Floor, Exchange Plaza, 5th Floor, 7 Lyons Range, Phiroze Jeejeebhoy Towers, Plot No.-
Slide 2: Earnings Update Call, Q2 FY23
Berger Paints India Limited Earnings Update Call, Q2 FY23 November 10th, 2022
Slide 3: Q2 FY23 Performance
Q2 FY23 Performance
Slide 4: Decorative Business
Decorative Business • Decorative business continued its robust performance in volume and value growth for the quarter in spite of late monsoon and price inflation. • Gained significant market share in the Financial Year. 18.8 18.0 FY22 H1 FY23 *Market share is based on performance of 5 leading playe
Slide 5: Decorative Business
Decorative Business 26.1 50.6 36.7 3Yrs Compounded 3Yrs Compounded Growth 18.4% Growth 17.3% 22.5 Q2FY22 Q2FY23 H1FY22 H1FY23 Values Sales Growth% Value Sales Growth% 4.7 31.9 26.1 3Yrs Compounded 3Yrs Compounded Growth 11.0% Growth 13.1% 0.8 Q2FY22 Q2FY23 H1FY22 H1FY23 EBTIDA Growth% EBDITA Growth%
Slide 6: Decorative Business
Decorative Business • Strong network expansion for the business. - 6233 Sales points added in H1FY23. • Strong addition in Colorbank Machine installation 3,163 1,819 H1FY22 H1FY23 • T1, T2 and T3 cities - all showed high double-digit growth over corresponding quarter last year. Rural markets grew at
Slide 7: New Product launches
New Product launches Silk Glamor Primer with in-build in Matt waterproofing Finish The easiest way of properties. waterproofing. Simple brush application
Slide 8: Industrial Business
Industrial Business • GI and Auto business showed good growth in the quarter. • Protective and infrastructure business registered another quarter of strong growth aided by government spending on infrastructure. • Significant price increases were achieved in all industrial business lines. • Powder Co
Slide 9: Profitability
Profitability • Raw material as percentage of sale went up mainly on account of material price increases partly offset by increase in product prices. • No significant product price increase taken in Q2 on account of lower trajectory of some raw materials which impacted profitability. Raw Materials P
Slide 10: Profitability
Profitability • Softening of Monomer and solvent prices are likely to lead to profitability improvement in Q3 and Q4. Titanium Diaoxide prices also seen softening towards the end of the quarter • Profitability for the quarter was also impacted on account of inclusion of one time subsidy income of 18
Slide 11: Capacity Expansion
Capacity Expansion • Company has also acquired 30 acres of land in Panagarh,31% West Bengal for manufacture of Construction Chemicals, Resin and Industrial products Estimated outlay about 175 Crores. New manufacturing facility at Sandila in Uttar Pradesh to commence commercial • Further brownfield p
Slide 12: Financial Performance
Financial Performance
Slide 13: GROWTH (%) - Standalone Q2 FY23
GROWTH (%) - Standalone Q2 FY23 25.0 22.5 20.0 15.0 10.0 4.7 5.0 3.1 - Total income from PBDIT (Excluding PBIT PBT PAT operations Other Income) -5.0 -0.6 -0.6
Slide 14: GROWTH (%) - Standalone H1 FY23
GROWTH (%) - Standalone H1 FY23 40.0 36.7 35.0 31.9 32.2 30.0 30.0 30.0 25.0 20.0 15.0 10.0 5.0 - Total income PBDIT (Excluding PBIT PBT PAT from operations Other Income)
Slide 15: Financial Results – Standalone Q2 FY23
Financial Results – Standalone Q2 FY23 Rs Crores % to Total % to Total Q2 FY 23 Income Q2 FY 22 Income Growth % Total income from operations 2,373.75 1,937.65 22.5 Material Cost 1,554.59 65.49 1,206.47 62.26 Employee Cost 120.45 5.07 105.39 5.44 Other expenses 380.42 16.03 321.84 16.61 PBDIT (Exclud
Slide 16: Financial Results – Standalone H1 FY23
Financial Results – Standalone H1 FY23 Rs Crores % to Total % to Total H1 FY 23 Income H1 FY 22 Income Growth % Total income from operations 4,862.42 3,556.86 36.7 Material Cost 3,164.91 65.09 2,212.14 62.19 Employee Cost 231.24 4.76 203.92 5.73 Other expenses 774.26 15.92 616.06 17.32 PBDIT (Exclud
Slide 17: Income from operations Growth % - Standalone
Income from operations Growth % - Standalone 96.0 53.0 53.7 24.0 26.1 22.5 21.2 7.4 7.3 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23
Slide 18: Gross Margin Trend (%) - Standalone
Gross Margin Trend (%) - Standalone 43.7 43.8 42.3 40.2 37.9 37.7 38.3 36.0 35.3 34.5 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23
Slide 19: Consolidated Q2 FY23 - Growth (%)
Consolidated Q2 FY23- Growth (%) 20.0 2.8 1.0 0.1 Total income PBDIT (Excluding PBIT PBT PAT from operations Other Income) -1.8
Slide 20: Consolidated H1 FY23 - Growth (%)
Consolidated H1 FY23- Growth (%) 35.0 31.6 30.7 29.7 30.0 Total income from PBDIT (Excluding PBIT PBT PAT operations Other Income)
Slide 21: Financial Results- Consolidated: Q2 FY23
Financial Results- Consolidated: Q2 FY23 Rs Crores % to Total % to Total Q2 FY 23 Income Q2 FY 22 Income Growth % Total income from operations 2,670.92 2,225.01 20.0 Material Cost 1,728.07 64.70 1,372.74 61.70 Employee Cost 160.37 6.00 141.93 6.38 Other expenses 418.53 15.67 356.35 16.02 PBDIT (Excl
Slide 22: Financial Results- Consolidated: H1 FY23
Financial Results- Consolidated: H1 FY23 Rs Crores % to % to Total Total H1 FY 23 Income H1 FY 22 Income Growth % Total income from operations 5,430.62 4,023.50 35.0 Material Cost 3,501.21 64.47 2,477.41 61.57 Employee Cost 306.40 5.64 272.96 6.78 Other expenses 854.22 15.73 680.61 16.92 PBDIT (Excl
Slide 23: Financial Results- Consolidated: Q2 FY23 subsidiaries
Financial Results- Consolidated: Q2 FY23 ▪ BJN Nepal had a good quarter of performance both on the topline and profitability ▪ Company’s Polish subsidiary Bolix S.A had degrowth both in topline and profitability impacted by Ukraine war and high inflation negatively impacting the consolidated numbers
Slide 24: Outlook
Outlook ▪ Demand in urban markets looks encouraging. Hoping for an uptick in rural demand on the back of good monsoon ▪ Mix improvement likely in the coming quarters supported by increased sale of exterior coatings ▪ Industrial sales outlook remain strong on the back of growth in auto sector and gov
Slide 25: 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.