Shalimar Paints Limited has informed the Exchange about Investor Presentation
SHALIMAR PAINTS
August 16, 2022
BSE Limited Corporate Relationship Department, lst Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, Mumbai - 400 001 BSE Scrip Code: 509874
National Stock Exchange of India Ltd Exchange Plaza, 5“ Floor, Plot No. C/1, G- Block Bandra Kurla Complex, Bandra (E), Mumbai — 400051 NSE Symbol : SHALPAINTS
Sub: Intimation
pursuant
to
Regulation
30
of SEBI
(Listing
Obligations
and
Disclosure
Requirements) Regulations, 2015 - Investors presentation
Dear Sir/Madam,
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of the presentation on the financial results of the Company for the quarter ended June 30, 2022. The same is also being uploaded on the website of the Company www.shalimarpaints.com.
You are requested to kindly take the above information on record.
Thanking you,
Yours faithfully,
For Shalimar Paints Limited
ae
Shikha Rastogi Company Secretary
Encl.: as above
SHALIMAR PAINTS
| Shalimar Paints Ltd.
1
Corporate Office: 1" Floor, Plot No. 28, Sector 32, Gurugram - 122001, Haryana
| Regd. Office: Stainless Centre, 4" Floor, Plot No. 50, Sector 32, Gurugram - 122001, Haryana. I } t
Call: +91 124 461 6600 Email Id: askus(@shalimarpaints.com Website: www.shalimarpaints.com CIN: L24222HR1902PLC065611
Fax: +91 124 461 6659 Toll Free: 1800-103-6509
Shalimar Paints Limited
Investor Presentation August 2022
Safe Harbour
'SHALIMAR
This presentation and the accompanying slides (the “Presentation”), which have been prepared by Shalimar Paints Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means ofa statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company
makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the Company’s ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
All Maps used in the Presentation are not to scale. All data, information and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.
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14
Company Overview
€ sHALIMAR
100-Year-Young Brand: Renowned for High product quality
India’s iconic structures continue to use Shalimar Paints
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India’s Oldest Brand
Production Per annum
-
Fo.
Dealers network across the country
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Decorative & Industrial paints
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Manufacturing facilities
Depots
Employee strength
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> ) R&D center for paint
—
innovations
Deal with Infra.Market
SHALIMAR PAINTS
SHALIMAR PAINTS
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INFRA.MARKET
Backed by investors including Accel, Nexus Venture Partners, Evolvence India Fund, Sistema Asia Fund and Foundamental Gmb and Tiger Global
Shalimar Paints are at the inflection point of exponential growth and partnering with Infra.Market will enable the company to pursue both organic and inorganic growth opportunities within our existing and even newer product categories.
The association with Shalimar is an important step as paints is an exciting category and Shalimar presents a unique opportunity for Infra. Market to partner with an established vintage brand in this much coveted category. Infra.WMarket’s technology- based supply chain solutions, will substantially add value to the robust ecosystem that Shalimar has already built, and together it will be instrumental in enhancing Infra.Market’s position as a category leader in the building material industry.”
Tamed Infra.Market into the lucrative Paints Category
Growth Capital
Generation Platform to increase its reach and distribution network
PNoo mom T=) Gs
to provide
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Our Product Offerings
SHALIMAR PAINTS
Decorative Paints
Industrial Paints
An extensive range of decorative and protective paint products for interior and exterior segments
Our portfolio spans across product categories and price points catering to a wide variety of consumers
Eco friendly emulsion products certified by Griha Council
Low VOC products that is certified by National Test House (NTH)
Pioneers in Industrial coatings - Introduced notable firsts in high performance coatings such as high-build zinc coatings, radiation resistant coatings for nuclear power plants, polyurethane paint for fighter aircraft and railway coaches
One of the largest Indian players in high-performance Protective Coatings
Significant presence in General Industrial (Product Finish) and Packaging coatings
Decorative Paints: Strategy Going Ahead
>
SHALIMAR
Focus on areas having significant presence
Focus on smaller Tier 3 & 4 towns and rural area
Focus on deploying Premium emulsion machines in the market
Service improvement- specially supply
fe
E
Focus on research &
development of newer products
Expert Program
Increase in no. of Painters
;
;
Progress over last a year
¥Y
Cost Reduction: * Cost saving due to optimization of water & solvent-
based paints
¥ New Product Development:
* Newer products developed & formulations released to plants
22%)
i
Y Vendor Development:
* Newer Raw material evaluated and approved
Apr-19
Mar-20
Mar-21
Mar-22
Jul-22
Y
Quality Upgradation: * Quality of the formulations were improved
Positive outcome on financial performance
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105.5
109.9
65.2
Q1 F22
Q4 F22
Q1 F23
Cost Optimization Strategies
¥
¥
¥
Improve Supply / RM Chain Management
Improve the Product Supply to Channel partners
Reduce overall company related costs
Value Creation
¥ Volume Growth in Decorative + Industrial Segments
*
Lead to Improved Operating Efficiencies
Y
Increase dealer network and number of depots across the
2.3
country
13
71.
*
. Optimizing dealer margins over a period of time
a
.
.
-8.8 Qi FY22
Q4 FY22
Q1 FY23
Improving Efficiencies
¥
Lowering Working Capital requirements and improving
profitability
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Financial performance
_SHALIMAR PAINTS
75.7%
71.4%
72.9%
Qi F22
Q4 F22
Qi F23
9.1%
7.5%
° 7.9%
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T S O C
E E Y O L P M E
T S E R E T N I
16.2%
8.8%
10.9%
Qi FY22
Q4 FY22
Q1 FY23
74%
5.4%
4.0%
Qi FY22
Q4 FY22
Q1 FY23
Qi F22
Q4 F22
Qi F23
ace
_
_
mm
Financial performance
& SHALIMAR
PAINTS
Other Exp. (% to Revenue}
28.1%
Optimizing Operating Efficiencies
19.2%
19.7%
Inventory and debtor days
Inventory and Debtors (No. of days)
106
62
FY20
FY21
FY22
Q1FY22
Q4 FY22
Q1FY23
|| Inventory MS Debtors
10
Profit & Loss Statement Q1 FY23
cai
Revenue from Operations
:
Cost of Materials Consumed
Purchase of Traded Goods
Changes in Inventories of Finished Goods and Work in Progress Gross Profit
° GP %
Employee Benefits Expense
Other Expenses
EBITDA
Other Income Depreciation and Amortisation Expense
EBIT Finance Costs
Exceptional Items
PBT
Total Tax Expense
Profit for the year
EPS
ae
-
109.9
84.3
6.9
411
29.8 ° 27.1%
11.9
21.2
-3.4
1.6 3.4
“5.3 AA
0.0
“9.6
0.0
-9.6
65.2
42.8
3.4
31
15.9 ° 24.3%
10.6
14.1
-8.9
0.1 3.3
-12.2 48
-2.5
-19.4
0.0
-19.4
76.8
5.3
68
30.2 ° 28.6%
9.3
20.7
0.2
2.1 3.3
“1.1 57
-5.9
12.7
0.0
-12.7
-2.27
e Revenue: 105.6 a
o Company has reported revenue growth of 4% from previous quarter, i.e., Q4 FY22 and 69% from Previous Year Q1. Company has recorded highest sales in Q1 Vs Q1 YoY in last 8 years.
:
;
;
;
co During this quarter company has grown by 22% in Decorative segment from
previous quarter, i.e., Q4 F22.
o During this quarter, the company has grown in water base segment by 15% from
o
previous year Q1 F22. Inthe coming quarters looking at the raw material trend, company will decide on the future pricing strategy
e Raw material cost:
o
Over the last few quarters, raw material prices have seen on an increasing trend, which has contracted the Gross profit impacting the overall profitability of the
company
o The prices of key raw materials have increased as compared to previous quarter slide on the back of steep inflationary trend and sharp increase in commodity prices across the globe
o The company was able to absorb the increased cost by passing on the cost to the consumers through increase prices. However, due to competitive intensity need to absorb few costs internally impacting the margins of the company
in average selling
© Company is continuously working on improving its product mix within the segments, which will eventually help to reduce the impact of increase in raw material costs on the company’s profitability
e Other Expenditure:
o Company has maintained the fixed cost at previous year level, however marginal
is due to secondary freight on account of increased in fuel prices.
-1.33
-3.58
-" cm
44
Business Segment Performance
& SHALIMAR
PAINTS
Decorative Paints
Industrial Paints
Revenues (Rs. Crs.)
Revenues (Rs. Crs.)
Revenues (Rs. Crs.)
71
58
48
39
106
110
35
30
65
Q1FY22
Q4 FY22
Q1FY23
Q1FY22
Q4 FY22
Q1 FY23
Q1FY22
Q4 FY22
Q1FY23
Volumes (in KL ‘000)
Volumes (in KL ‘000)
Volumes (in KL ‘000)
6.2
73
3.0
26
9.3
9.9
5.4
2.1
7.5
Q1F22 —_
*Gross Figures
Q4F22
Q1F23
Q1FY22 me
Q4 FY22
Q1FY23
QUFY22
Q4 FY22
Q1FY23
12
Thank You
Company:
_.
Shalimar Paints Limited
CIN: L24222HR1902PLC065611
Mr. Mohit Kumar Donter - Chief Financial Officer
mohit.donter@shalimarpaints.com
www.shalimarpaints.com
Investor Relations Advisors :
@
orient capital
Orient Capital (a division of Link Group)
Ms. Rasika Sawant: +91 95944 57518
rasika.sawant@linkintime.co.in