Shalimar Paints Limited has informed the Exchange about Investor Presentation
November 15, 2022
BSE Limited Corporate Relationship Department, 1st 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, 5th 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 and half year ended September 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
Shikha Rastogi Company Secretary
Encl.: as above
Shalimar Paints Limited
Investor Presentation November 2022
Safe Harbour
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 of a 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.
2
1902
Vision
Mission
A.N.
Turner
and Two Britishers A.N. Wright - set up Colour & Varnish Company in Howrah, West Bengal. It is the first paint manufacturing plant in the South East Asia
To persevere and excel as one of the premier paint companies of the country, a leader in product innovation and customer satisfaction. We intend to build long term our value shareholders, customers, employees and suppliers.
relationships
with
all
value
shareholder
by To maximise engaging and growing our employees, delivering innovative and superior quality product segment, building strong human engagement with our dealers & vendors
to every
customer
Company Overview
100-Year-Young Brand: Renowned for High product quality
India’s iconic structures continue to use Shalimar Paints
100+ years of establishment
India’s Oldest Brand
69,000+ KL
Production Per annum
3
Manufacturing facilities
30+
Depots
The “Art & Science” of Paints
3000+
Dealers network across the country
Strong Presence in
500+
Decorative & Industrial paints
Employee strength
1
R&D center for paint innovations
4
Deal with Infra.Market
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.
Backed by investors including Accel, Nexus Venture Partners, Evolvence India Fund, Sistema Asia Fund and Foundamental Gmb and Tiger Global
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.Market’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.”
Entry of Infra.Market into the lucrative Paints Category
Access to Next Generation Platform to increase its reach and distribution network
Fund infusion to provide Growth Capital
5
Our Product Offerings
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)
paints that give
walls a persona
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
6
Decorative Paints: Strategy Going Ahead
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
Focus on research & development of newer products
Progress over last a year
✓ Cost Reduction:
• Cost saving due to optimization of water & solvent-
based paints
Expert Program
Increase in no. of Painters
✓ New Product Development:
• Newer products developed & formulations released to
20%
plants
+22%
+438%
+13%
✓ Vendor Development:
• Newer Raw material evaluated and approved
Apr-19
Mar-20
Mar-21
Mar-22
Sep-22
✓ Quality Upgradation:
• Quality of the formulations were improved
7
Positive outcome on financial performance
E U N E V E R
A D T I B E
T I F O R P H S A C
+21.8%
109.9
110.7
90.9
Q2FY22
Q1FY23
Q2FY23
-3.4
Cost Optimization Strategies
✓ Improve Supply / RM Chain Management
✓ Procurement through reverse mechanism.
✓ 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
-7.8 Q2FY22
-13.4 Q2FY22
-4.7
✓ Increase dealer network and number of depots across the
country
Q1FY23
Q2FY23
• Optimizing dealer margins over a period of time
-6.2
-7.7
Q1FY23
Q2FY23
Improving Efficiencies
✓ Lowering Working Capital requirements and improving
profitability
8
Positive outcome on financial performance
77.5%
72.9%
75.2%
Q2FY22
Q1FY23
Q2FY23
10.6
12.0
12.8
S G O C
T S O C E E Y O L P M E
E S N E P X E R E H T O
T S E R E T N
I
17.6
21.2
19.3
Q2FY22
Q1FY23
Q2FY23
5.7
4.4
4.1
Q2FY22
Q1FY23
Q2FY23
Q2FY22
Q1FY23
Q2FY23
9
360o growth strategy: started yielding results
Operating Profit
Optimizing Operating Efficiencies
EBITDA (Rs. Crs)
-3.4
-4.7
-7.8
Q2 FY22 Q1 FY23
Q2 FY23
Other Exp. (% to Revenue)
28.1%
19.2%
19.7%
FY20
FY21
FY22
Inventory and debtor days
Inventory and Debtors (No. of days)
85
75
60
61
72
64
Q2 FY22 Q1 FY23 Q2FY23
Inventory
Debtors
10
Profit & Loss Statement Q2 FY23
Particulars
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
Q2FY23
Q2FY22
Q1FY23
• Revenue:
110.7
69.7
6.7
6.9
27.3
24.7%
12.8
19.3
-4.7
1.2
3.1
-6.7
4.1
-
-10.8
0.0
-10.8
-1.5
90.9
63.0
5.2
2.3
20.4
22.4%
10.6
17.6
-7.8
0.1
3.4
-11.2
5.7
-
-16.8
0.0
-16.8
-3.1
109.9
84.3
6.9
-11.1
29.8
27.1%
12.0
21.2
-3.4
1.5
3.4
-5.3
4.4
-
-9.6
0.0
-9.6
-1.3
o Company has reported revenue growth of 22% from previous year which
is Q2FY22.
o During this quarter company has grown by 24% in Decorative segment and 52% in Industrial Segment on gross revenue from last year same quarter i.e., Q2 FY22.
o During the quarter, the Company has taken a price hike of 20% compared to same period last year to partially offset the increase in the raw material prices.
o In the coming quarters looking at the raw material trend, company will
decide on the future pricing strategy
• Raw material cost:
o Over the last few quarters, raw material prices were on an increasing trend, which has contracted the Gross profit impacting the overall profitability of the company. During Q2 FY23 key raw material prices have reduced globally, hence Gross margins are Improved by 4% from Q2FY22 and 2% from Q1FY23.
o The prices of key raw materials have decreased as compared to previous
quarter.
o 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
• Other Expenditure:
o Company has maintained the fixed cost at previous year level, however there was a marginal increase in line with the sales for semi variable expenses.
11
Balance Sheet As on 30th Sep 2022
Balance Sheet - ASSETS
Property, Plant and Equipment
Right of Use Assets
Capital Work-in-progress
Intangible Assets
Financial Assets
Other Financial Assets
Deferred Tax Assets (Net)
Total Non-Current Assets
Inventories
Financial Assets
(i) Trade Receivable
(ii) Cash and Cash Equivalents
(iii) Other Bank Balances
(iv) Other Financial Assets
Current Tax Assets (Net)
Other Current Assets
Total Current Assets
TOTAL ASSETS
Sep - 22
Mar-22
Balance Sheet - EQUITY & LIABILITIES
Sep – 22
Mar-22
251.5
17.3
1.3
3.8
2.2
-
276.0
107.3
95.1
0.8
83.5
2.6
3.3
11.8
304.3
580.4
268.9
Equity Share Capital
1.8
0.2
4.1
1.8
19.8
296.6
97.3
78.5
164.6
5.0
6.4
3.3
16.4
371.6
668.2
Other Equity
Total Equity
Financial Liabilities
(i) Borrowings
(ii) Lease Liabilities
(iii) Other Financial Liabilities
Provisions
Deferred Tax Liabilities (Net)
Total Non-Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Lease Liabilities
(iii) Trade payables
(iv) Other Financial Liabilities
Provisions
Other Current Liabilities
Total Current Liabilities
TOTAL EQUITY & LIABILITIES
14.4
353.3
367.8
75.1
0.4
0.1
13.0
2.5
91.2
22.5
1.3
67.3
23.5
1.0
5.9
121.42
580.4
14.4
357.5
371.9
84.6
1.0
0.1
8.3
-
94.0
58.7
0.9
106.0
25.4
5.1
6.3
202.2
668.2
12
Cashflow Statement
Cash Flow Statement
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Cash & Cash Equivalents at the beginning of the period
Cash & Cash equivalents at the end of the period
Sep – 22
Sep-21
(20.4)
12.42
(8.0)
(60.1)
(68.1)
(0.1)
(68.0)
(82.1)
(13.7)
(163.8)
164.6
0.8
(36.2)
17.2
(19.0)
4.3
(14.7)
(0.1)
(14.8)
(2.6)
16.4
(1.0)
2.7
1.7
13
Thank You
Company :
Investor Relations Advisors :
Shalimar Paints Limited
CIN: L24222HR1902PLC065611
Mr. Mohit Kumar Donter – Chief Financial Officer
mohit.donter@shalimarpaints.com
www.shalimarpaints.com
Orient Capital (a division of Link Group)
Ms. Rasika Sawant:
+91 95944 57518
rasika.sawant@linkintime.co.in