Indigo Paints Ltd · NSE:INDIGOPNTS
Indigo Paints — FY2021 Earnings Presentation
20 slides from Indigo Paints's earnings presentation, May 14, 2021
Slide 1: Intimation under Regulation 30 for Investor Presentation
| AN INDIGO Date: May 14, 2021 Be surprised! To, To BSE Limited National Stock Exchange of India Limited Corporate Relationship Department Exchange Plaza, Plot No. C-1, Block G, 25" Floor, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Besides (East) Dalal Street, Mumbai- 400001 Mumbai - 400051 Sc
Slide 2: Investor Presentation (Update - Q3, Q4 & FY 21)
Investor Presentation (Update - Q3, Q4 & FY 21) TEN eee INDIGO
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 resulfs may or may not prove to be
Slide 4: Analyst Presentation FY 21: Corporate
Analyst Presentation FY 21 1. Corporate
Slide 5: Corporate: IPO completion
CORPORATE : IPO completion ¢ Company completed a successful IPO in Jan 21, and was listed on Feb 2, 21; issue subscribed 117 times; IPO quantum Rs 1169 cr o Institutional investors : 190 times o HN Iinvestors: 263 times o Retail investors: 16 times ¢ Huge participation trom marquee investors globall
Slide 6: Covid impact
Covid-19 —————————— ee ”— — CORPORATE : Covid impact ¢ Severe impact in Apr 20 due to nationwide lockdown; manufacturing facilities resumed operations in end-Apr ¢ Excellent bounce-back in sales from May 20, as smaller towns were less impacted by Covid ¢ No impact on cash-flows of company ¢ No layof
Slide 7: Infrastructure
Infrastructure CORPORATE : Infrastructure ¢ Capacity of Putty plant at Jodhpur was doubled in FY 21; some expansion in water- based paint capacity also effected ¢ Capacity of water-based paint capacity at Kochi was also augmented in FY 21 ¢ About 17 acres of additional land was acquired at Tamil Nad
Slide 8: Analyst Presentation FY 21: Financials for Q3 and Q4
Analyst Presentation FY 21 1. Corporate 2. Financials for Q3 and Q4
Slide 9: Financials for Q3 and Q4
Financials for Q3 and Q4 FINANCIALS FOR Q3 and Q4: (INR Cr) Particulars H1 FY21 Q3 FY21 Q4 FY21 Net Revenues from Operations 259.4 209.6 954.3 Y-o-Y growth for period -4.8% 22.2% 40.8% Gross Margin % 47.9% 49.6% 46.7% EBITDA % 18.5% 15.0% 16.9% PAT Margin % 10.5% 8.9% 9.7% # Q3 EBITDA was lower due
Slide 10: Comments on Q3 and Q4
Comments on Q3 and Q4 FINANCIALS FOR Q3 and Q4: # Sales growth, which was negative in first half (due to April lockdowns), picked up to > 22% growth In Q3, and 41% in Q4 » There was an unprecedented increase in RM prices during Q3 and Q4; we increased prices of paints in tranches between Nov-Mar to
Slide 11: Analyst Presentation FY 21: Financials for FY 21
Analyst Presentation FY 21 ANG 1. Corporate 2. Financials for Q3 and Q4 3. Financials for FY 21
Slide 12: Value/Volume growth in FY 21
Value/Volume growth in FY 21 VALUE / VOLUME GROWTH : Product Cateao Value Volume Volume Value gory Growth Growth Contribution Contribution Cement Paints + Putty 26.4% 19.6% 56.0% 15.3% Emulsions 11.7% 8.7% 17.4% 42.8% Sooo Coatings 22.9% 15.4% 5.0% 18.1% eae Seo oa Others 22.0% 20.3% 21.6% 23.7% 11
Slide 13: Salient Features FY 21
Salient Features FY 27 SALIENT FEATURES : # Our portfolio of differentiated products accounted for 29.5% of Revenues in FY 21, compared to 28.6% of Revenues in FY 20 # Due to our large presence in Kerala, our growth rate in Kerala is always much lower than in other States. Kerala’s share of Revenue
Slide 14: Network Expansion FY 21
Network Expansion FY 21 —————————— ee ”— — NETWORK EXPANSION : ¢ Company launched aggressive campaign from Dec 20 to accelerate expansion of Dealer network ; our active Dealer count increased from ~11,200 at end of FY 20 to ~13,200 at end of FY 21 ¢ Our population of Tinting machines increased from
Slide 15: Brand building FY 21
Brand building FY 21 —————————— ee ”— — ADVERTISING : ¢ Despite headwinds of Covid and rising RM costs, our Company elected to continue to invest in Brand-building activities during FY 21 ¢ Media advertising soends of Company increased from Rs 61.52 cr (FY 20) to Rs 63.35 cr (FY 21), despite zero ad
Slide 16: Key Financials FY 21
Key Financials FY 21 KEY FINANCIALS FOR FY 21: (INR Cr} Particulars FY 20 FY 21 % Change Gross Revenues 688.9 813.5 18.1% Net Revenues 624.8 723.3 15.8% Gross Margin 48.5% 47.9% EBITDA 90.99 122.5 34.7% EBITDA Margin 14.6% 16.9% PAT 47.8 70.9* 48.2% PAT Margin 7.6% 9.7% Net Worth 197.1 563.5 * PAT i
Slide 17: Key Metrics FY 21
Key Metrics FY 21 ~ KEY METRICS FOR FY 21: Particulars FY 20 FY 21 Freight expense (% of Net Revenue) 10.5% 9.9% Advertising & promotional expense (% of Net Revenue) 12.7% 10.7% Employee cost (% of Net Revenue) 6.77% 6.7% Other Operating expense (% of Net Revenue) 4.0% 3.7% Return on Equity (RoE %)
Slide 18: Comments on Financials of FY 21
Comments on Financials of FY 21 # Our company continues to outperform the paint industry growth parameters, by registering 15.8% topline growth in covid-impacted year # Volume growth has been healthy across all product categories # Managed to maintain Gross margins with marginal 0.5% drop, despite u
Slide 19: Future Outlook
Future Outlook # Sales outlook is very uncertain in near-term; however, confident of sharp recovery once lockdowns are lifted. Expect to continue to outperform industry growth figures » Will accelerate expansion of Dealer network and tinting machines » RM prices have started moderating in Ql, and an
Slide 20: ai NEEP
ai NEEP