Shalimar Paints Limited has informed the Exchange about Investor Presentation
February 16, 2023
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 nine months ended December 31, 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
SHIKHA RASTOGIDigitally signed by SHIKHA RASTOGI Date: 2023.02.16 11:09:04 +05'30' Shalimar Paints Limited
Investor Presentation February 2023
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
Britishers
Two and 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 value our shareholders, customers, employees and suppliers.
relationships
with
all
value
shareholder
To maximise by engaging and growing our employees, delivering innovative and superior quality product segment, building strong human engagement with our dealers & vendors
to every
customer
Our Key Projects
INDIA’S ICONIC STRUCTURES CONTINUE TO USE SHALIMAR PAINTS
The Howrah Bridge
The Rashtrapati Bhawan
The Vidyasagar Setu
The Salt Lake Stadium
The Chenab Bridge
4
Company Overview
120+ years of establishment India’s Oldest Brand
69,000+ KL Production Per annum
3 Manufacturing facilities
30+ Depots
3000+ Dealers network across the country
500+ Employee strength
1 R&D center for paint innovations
5
Our Product Offerings
Decorative Paints
Industrial Paints
Construction Chemicals
•
•
•
•
An extensive and protective paint products for interior and exterior segments
of decorative
range
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)
•
•
•
coatings
in Industrial
- Pioneers 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 Industrial Packaging coatings
presence (Product
in Finish)
General and
• Major products are admixtures, curing compounds and mould release agent
•
Dealing in chemicals suitable for readymix concrete, infrastructure and building projects
6
Performance Snapshot
New Product Launches during the year 2022-23
8
Expert Painter Program Performance
77% Growth
83% Growth
57% More
22% Growth
2.2X Growth
total registered painters
New Painters enrolled
Active Painters
in Avg Monthly Point scanning
in Per Painter Offtake
Average Points Scanned increased from 35 Lacs to 43 Lacs in Q3 with all other KPIs showing positive growth
9
Brand Alliance with Aap Ka Painter
India’s biggest independent painting service company servicing 14+ Cities
Rated 4.6 in customer satisfaction index on Google scorecard
Our Association
Promotion of Shalimar Paints to its customers via digital integration & via BD team.
Phase 1 DELHI NCR, expansion to 11 more cities
Special Offers for AKP customers designed.
Offer
Zero Cost EMI option
Free Wall Makeover sponsored by Shalimar paints
“Hassle Free Painting with Unconditional Warranty”
10
9MFY23 : New Dealer performance
1080
NEW DEALERS
29.96 CR
SALE
12%
CONTRIBUTION TO NET SALE
428
14.45
4.54
334
318
10.90
4.61
1.38
2.54
Q1FY23
Q2FY23
Q3FY23
Q1FY23
Q2FY23
Q3FY23
Q1FY23
Q2FY23
Q3FY23
New Dealer Additions
Sales (in Crores) from new dealers
Yield per dealer (in lacs)
Rs. In Crs
Rs. In Crs
11
Marketing Initiatives
MARKETING SUPPORT
• Schemes & Festival at Dealer stores
• Brand Signage & OOH Support
• Shade Tools & NPD Launch
• Painter Mega Meets & Painter Trainings
Painter Schemes DBT On Tinted Products
2X Loyalty Points for Painters
Top 50-100 Store
Shalimar Exclusive Store
Dedicated Marketing Budget focussed on CS Dealers
12
Decorative Paint Performance
Historical Decorative Paint performance : Y-o-Y Value growth (in Cr) every quarter
Gross Revenue Rs. In Crs
91%
84
44
23%
87
23%
90
71
73
39%
261
188
Q1FY22
Q1FY23
Q2FY22
Q2FY23
Q3FY22
Q3FY23
9MFY22
9MFY23
Volume (KL)’000
23%
6.675
5.410
-2%
1%
6%
7.360
7.182
7.009
7.098
19.779
20.955
Q1FY22
Q1FY23
Q2FY22
Q2FY23
Q3FY22
Q3FY23
9MFY22
9MFY23
13
Industrial Performance
Historical Industrial performance : Y-o-Y Value growth (in Cr) every quarter
Gross Revenue Rs. In Crs
44%
39
47%
47
39%
50
45%
136
27
32
36
94
Q1FY22
Q1FY23
Q2FY22
Q2FY23
Q3FY22
Q3FY23
9MFY22
9MFY23
Volume (KL)’000
23%
2.595
2.118
31%
3.052
29%
3.069
27%
8.716
2.334
2.386
6.838
Q1FY22
Q1FY23
Q2FY22
Q2FY23
Q3FY22
Q3FY23
9MFY22
9MFY23
14
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
• Margin improvement plan is in place
• No extra material addition
New Product Development:
• Newer products developed & formulations released to
plants
Vendor Development:
• Newer Raw material evaluated and approved
Expert Program
Quality Upgradation:
• Quality of the formulations were improved
Moving towards manufacturing excellence:
• Installation of new pipelines for eliminating flexible
hose
• Improvement in the storage facility
15
Positive outcome on financial performance
Rs. In Crs
E U N E V E R
A D T I B E
Improvement in Net Revenue
+33.8%
110.7
96.5
129.1
Net Revenue growth of 34% v/s last year largely contributed by 36%
growth in Industrial Segment and 12% in Decorative Segment
Increase in the dealer network and number of depots across the country
Increase in the number of tinting machines
Q3FY22
Q2FY23
Q3FY23
Brand Alliance with Aap ka Painter
Focus on water-based products and increase of products in the water
based umbrella
Launch of new products in waterproofing range
0.4
Improvement in EBITDA
-3.4
Q3FY22
-3.6 Q2FY23
EBITDA is positive in the current quarter as against last year largely due to
Reduction in input cost by 2.5%
Q3FY23
Procurement through reverse mechanism which has reduced
material as well as freight cost
16
Cost Trend
76.0%
75.2%
73.5%
S G O C
E S N E P X E R E H T O
18.1
19.3
21.2
% to Net Sales
Q3FY22
Q2FY23
Q3FY23
Rs. In Crs
Q3FY22
Q2FY23
Q3FY23
T S O C E E Y O L P M E
11.0
12.8
13.6
6.1
T S E R E T N
I
4.1
3.6
Rs. In Crs
Q3FY22
Q2FY23
Q3FY23
Rs. In Crs
Q3FY22
Q2FY23
Q3FY23
17
360o growth strategy: started yielding results
Rs. In Crs
EBITDA (Rs. Crs)
0.4
EBITDA
Optimizing Operating Efficiencies
-3.5
Q3 FY22
-3.6 Q2 FY23
Q3 FY23
Other Exp. (% to Revenue)
28.1%
19.2%
19.7%
17.6%
FY20
FY21
FY22
9MFY23
Inventory and debtor days
Inventory and Debtors (No. of days)
74
63
72
64
71
67
Q3FY22
Q2FY23
Q3FY23
Inventory
Debtors
18
Consolidated Profit & Loss Statement Q3 FY23
Particulars (Rs. Crs)
Revenue from Operations
Other Income
Total Revenue
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
Depreciation and Amortisation Expense
EBIT
Finance Costs
Exceptional Items
PBT
Total Tax Expense
Profit for the year
EPS
Q3FY23
Q3FY22
Q2FY23
Revenue:
129.1
1.0
130.1
95.3
5.6
-6.0
35.2
96.5
2.6
99.0
69.9
3.9
-0.5
25.7
27.0%
25.9%
13.6
21.2
0.4
3.0
-2.6
3.6
-
-6.2
-
-6.2
-0.86
11.0
18.1
-3.5
3.4
-6.8
6.1
-
-12.9
-
-12.9
-2.37
110.7
1.2
111.8
69.7
6.7
6.9
28.5
25.5%
12.8
19.3
-3.6
3.1
-6.7
4.1
-
-10.8
-
-10.8
-1.49
o Company has reported revenue growth of 34% from previous year which is
Q3FY22.
o During this quarter company has grown by 12% in Decorative segment and 36% in Industrial Segment on gross revenue from last year same quarter i.e., Q3 FY23.
o Company has onboarded 1080 new dealers and deployed more than 250 tinting machines during the year which has also contributed in the positive growth in the revenue.
o Company has also experienced a healthy change in mix of water based products
and in specific emulsions portfolio
Raw material cost:
o In the current quarter, the prices of key raw material has been stable which has resulted in the gross margins improvement by 2.5% from Q3FY22 and 1.8% from Q2FY23.
o As against previous quarter, there is a reduction in all the key raw materials by
15-20%
o Company is continuously working on improving its product mix within the segments, which will eventually help to reduce the raw material costs of the company.
o New formulations by R&D has helped the reduction in cost for 3 major categories
of water-based paints
Other Expenditure:
o Company has maintained the fixed cost at previous year level. However, in terms
of percentage to sales, the fixed cost is lower by 3% on YoY scale.
Finance Cost :
o During the quarter, finance cost has been reduced by Rs. 2.5 Crs as against last
year mainly due to reduction in the borrowings.
19
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