Indigo Paints Ltd · NSE:INDIGOPNTS
Indigo Paints — Q2 & H1 FY25 Earnings Presentation
29 slides from Indigo Paints's earnings presentation, Nov 8, 2024
Slide 1: Intimation under Regulation 30 – Investor Presentation cover letter
November 08, 2024 To, To BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C-1, Block G, 25th Floor, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai- 400001 Mumbai - 400051 Scrip Code: 543258 NSE SYMBOL
Slide 2: Indigo Paints Ltd Investor Presentation (Q2 & H1 FY25)
INDIGO Paints Ltd Investor Presentation (Q2 & H1 FY25)
Slide 3: Disclaimer
Disclaimer Certain statements and opinions with respect to the anticipated future performance of Indigo Paints Ltd (“Indigo”) in the presentation (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be
Slide 4: Contents
Contents Financial Update - Standalone (Q2 FY 25 & H1 FY 25) - Consolidated (Q2 FY 25 & H1 FY 25) KPI Growth Drivers Sustainability initiatives Outlook 3 3
Slide 5: Standalone Q2 FY25 highlights
Financial Growth update KPIs drivers Attaining industry-leading growth despite difficult market conditions Standalone | Q2 FY25 Rs. 288.5 Cr 44.1% 14.8% Revenue from Operations Gross Margin % EBITDA Margin % 6.7% YoY Growth EBITDA Rs. 42.6 Cr Maintaining pole position 1.9% YoY Growth 8.2% 5.4% A&P a
Slide 6: Standalone H1 FY25 highlights
Financial Growth update KPIs drivers Attaining industry-leading growth despite difficult market conditions Standalone | H1 FY25 Rs. 582.5 Cr 45.6% 15.2% Revenue from Operations Gross Margin % EBITDA Margin % 6.4% YoY Growth EBITDA Rs. 88.4 Cr Maintaining pole position -1.3% YoY Growth 8.6% 6.3% A&P
Slide 7: Moderate margin decrease balanced by good growth (Standalone)
Financial Growth update KPIs drivers Moderate margin decrease balanced by good growth…(Standalone) 6
Slide 8: Financial Analysis
Financial Growth update KPIs drivers Financial Analysis 1 2 3 4 5 6 Company’s topline We continue to The A&P expense The EBITDA% for the The PAT % The PAT% for growth has maintain the pole as a % of revenue quarter was 14.8% for the quarter the H1 FY25 was outperformed the position in terms of reduc
Slide 9: Contents
Contents Financial Update - Standalone (Q2 FY 25 & H1 FY 25) - Consolidated (Q2 FY 25 & H1 FY 25) KPI Growth Drivers Sustainability initiatives Outlook 8 8
Slide 10: Moderate margin decrease balanced by good growth (Consol)
Financial Growth update KPIs drivers Moderate margin decrease balanced by good growth… (Consol) 9
Slide 11: Consistently outpacing industry growth for 6 quarters
Financial Growth update KPIs drivers Consistently outpacing industry growth for 6 quarters Indigo Paints Industry 28.8% 25.8% 18.3% 15.0% 7.1% 7.8% 7.4% 5.6% 1.2% 0.6% 0.1% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 -1.6% Source: Leading Paints company data based on latest filings (till 7th Nov 2024)
Slide 12: Maintaining pole position in terms of Gross Margin%
Financial Growth update KPIs drivers Maintaining pole position in terms of Gross Margin% Indigo Paints Paint companies' average 48.2% 48.9% 47.3% 46.6% 45.6% 41.9% 43.7% 41.2% 42.2% 42.0% 41.9% 39.8% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 YoY Expansion + 214 + 386 + 436 + 204 (73) (190) /(Compres
Slide 13: Financial snapshot for last 5 years
Financial Growth update KPIs drivers Financial snapshot for last 5 years Sales (INR Cr) EBITDA (INR Cr) 1,306.1 27.2 % 238.1 1,073.3 906.0 181.5 723.3 122.5 136.0 624.8 610.5 91.0 88.9 FY20 FY21 FY22 FY23 FY24 H1 FY20 FY21 FY22 FY23 FY24 H1 FY25 FY25 PAT (INR Cr) RoCE (%) 34.3 32.82% 148.8 115.6 20.
Slide 14: Contents
Contents Financial Update - Standalone (Q2 FY 25 & H1 FY 25) - Consolidated (Q2 FY 25 & H1 FY 25) KPI Growth Drivers Sustainability initiatives Outlook 13 13
Slide 15: Product category snapshot for Q2 FY25
Financial KPIs Growth update drivers Product category snapshot for Q2 FY25 YoY growth for Q2 FY25 vs. Q2 FY24 Product Value growth (%) Volume growth (%) Putty + Cement Paints 3.0% 2.8% Emulsions 7.5% 7.2% Enamels and wood coatings 3.6% 4.3% Primers + Distempers + 13.7% 7.1% Others 14
Slide 16: Continued network expansion
Financial KPIs Growth update drivers Continued network expansion Active dealers and depots (#) # of depots 47 47 47 49 51 53 53 53 54 • Active dealer base increased to 18,718 Active Tinting 7,716 7,978 8,273 8,657 9,114 9,510 9,842 10,210 10,555 m/c • Tinting machines deployed at over 10,500 outlets
Slide 17: Contents
Contents Financial Update - Standalone (Q2 FY 25 & H1 FY 25) - Consolidated (Q2 FY 25 & H1 FY 25) KPI Growth Drivers Sustainability initiatives Outlook 16 16
Slide 18: Future growth drivers – Indigo Paints 2.0 Strategy
Financial Growth KPIs drivers update Future growth drivers – Indigo Paints 2.0 Strategy V. Expansion into adjacencies IV. Brand • Expand into non decorative segment. & marketing focus Foray into adjacencies like construction chemicals & III. Capacity • Ramp up salesforce waterproofing. augmentation
Slide 19: Geographical Expansion | Deepening our Network
Financial Growth KPIs drivers update Geographical Expansion | Deepening our Network 5 Manufacturing plants 28 States 54 Depots 18,718 Active dealers 10,555 Tinting machines Fortifying our presence in Tier 3,4 cities and fast growing in Tier 1,2 cities 18
Slide 20: Capacity Augmentation | Expansion Progress
Financial Growth KPIs drivers update Capacity Augmentation | Expansion Progress Jodhpur Upcoming Plant at Jodhpur • Erection work progressing in full pace at the water based plant with capacity of 90,000 KLPA. Expect commissioning by Q2 FY26 • Erection and installation work progressing at the solven
Slide 21: Brand Focus | Consistent focus to build a pan-India brand
Financial Growth KPIs drivers update Brand Focus | Consistent focus to build a pan-India brand Advertising & Promotional Spends (INR Cr) As % revenue 12.63% 12.65% 10.65% 9.72% 7.70% 7.36% 6.31% 92.32 88.06 82.7 79.05 77.06 67.66 36.75 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 H1 FY 25 • Continue to punch
Slide 22: Marketing Focus | Enhancing Digital Outreach
Financial Growth KPIs drivers update Marketing Focus | Enhancing Digital Outreach Significant foray in digital ads in Q2 FY25 21
Slide 23: Apple Chemie continues to accelerate growth
Financial Growth KPIs drivers update Apple Chemie continues to accelerate growth... • Indigo Paints acquired 51% of Apple Chemie to foray into construction chemicals & water proofing segment (WPCC) Revenue (INR Cr) • WPCC products for retail channel launched and marketed under Indigo 28.1 brand (Pro
Slide 24: Contents
Contents Financial Update - Standalone (Q2 FY 25 & H1 FY 25) - Consolidated (Q2 FY 25 & H1 FY 25) KPI Growth Drivers Sustainability initiatives Outlook 23 23
Slide 25: ESG Updates
ESG Updates Transitioning to renewable Community energy Service -Installation of 330 kW in progress at -Unique initiative involving Painters in Kochi Factory “Community service” to undertake painting of Government schools in Tier 2 towns 24
Slide 26: CSR
CSR Education of Healthcare for the Health Insurance for underprivileged girls underprivileged the Painter Community Continuing to provide Extending the health Extending education healthcare for the insurance to painter assistance & career guidance underpreviledged through community to the 11 states
Slide 27: Contents
Contents Financial Update - Standalone (Q1 FY25) - Consolidated (Q1 FY25) KPI Growth Drivers Sustainability initiatives Outlook 26 26
Slide 28: Outlook
Outlook 1 2 3 4 5 The Company Expecting the The A&P expense The EBITDA With good sales expects to margins to expand for the entire fiscal margin% for FY25 traction in Apple continue to with the price hike is expected to is expected to Chemie in H1 outpace the undertaken & decline marginally increase
Slide 29: Thank You
aM INDIGO Be surprise! Thank You 28