Shalimar Paints Limited has informed the Exchange about Investor Presentation

May 30, 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 - Earnings 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 the Q4 & FY23 earnings presentation of Shalimar Paints Limited (“the Company”). 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: 2023.05.30 13:25:36 +05'30' Shalimar Paints Limited

Earnings Presentation May 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

Contents

 Company Overview

 New Initiatives

 Performance Snapshot

3

Company Overview

3 2 Y F 4 Q

3 2 0 2 Y F

11,835 Volume (KL)

13% YoY

41,506 Volume (KL)

12% YoY

₹ 139.3 Revenue (Rs cr)

29% YoY

₹ 492.8 Revenue (Rs cr)

36 % YoY

28.0 % Gross Margin (%)

Improvement of 2 % Q-o-Q

27.0 % Gross Margin (%)

Improvement of 2 % Y-o-Y

₹ -2.60 EBITDA (Rs cr)

₹ -7.54 EBITDA (Rs cr)

4

Our Product Offerings

Decorative Paints

Industrial Paints

•

•

•

•

An extensive and protective paint products for interior and exterior segments

range of decorative

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 in high Introduced notable firsts 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

5

Product Performance

Decorative Paints

Industrial Paints

Q4FY23

8,011 Volume (KL)

7.0 % YoY

FY2023

28,966 Volume (KL)

6.0 % YoY

Q4FY23

3,824 Volume (KL)

27.0 % YoY

FY2023

12,540 Volume (KL)

27.0 % YoY

₹ 80 Net Revenue (Rs cr)

38.0 % YoY

₹ 285 Net Revenue (Rs cr)

33.0 % YoY

₹ 55 Net Revenue (Rs cr)

22.0 % YoY

₹ 191 Net Revenue (Rs cr)

36.0 % YoY

6

New Initiatives

PROMO PRODUCT LAUNCH: MASKING FILM

OBJECTIVE: MARKET TESTING

PROMO SCHEME LAUNCHED: Buy 20L of Stay Clean between 18th and 25th April Get 1 Shalimar Masking Film

Packaging Upgrades in Q4

Premium Water based Emulsions – New packaging going in production from May

S H A K T I

W T C P

WA L L P U T T Y

W e a t h e r P R O +

S i g n a t u r e

X t r a To u g h

9

FY23 : New Dealer performance

1458

NEW DEALERS

47.63 Crs

SALE

13%

CONTRIBUTION TO NET SALE

428

378

334

318

17.67

14.45

4.54

4.67

10.90

4.61

2.54

1.38

Q1FY23 Q2FY23 Q3FY23 Q4FY23

Q1FY23 Q2FY23

Q3FY23

Q4FY23

Q1FY23 Q2FY23

Q3FY23

Q4FY23

New Dealer Additions

Sales (in Crores) from new dealers

Yield per dealer (in lacs)

10

Performance Snapshot

Decorative Paint Performance

Historical Decorative Paint performance : Y-o-Y Value growth (in Cr) every quarter

23%

87

23%

90

71

73

+28%

92

72

+36%

353

260

Gross Revenue Rs. In Crs

91%

84

44

Q1FY22

Q1FY23

Q2FY22

Q2FY23

Q3FY22

Q3FY23

Q4FY22

Q4FY23

FY22

FY23

Volume (KL)

23%

6,675

5,410

-2%

1%

7,360

7,182

7,009

7,098

+7%

7,470

8,011

+6%

27,249

28,966

Q1FY22

Q1FY23

Q2FY22

Q2FY23

Q3FY22

Q3FY23

Q4FY22

Q4FY23

FY22

FY23

12

Industrial Performance

Historical Industrial performance : Y-o-Y Value growth (in Cr) every quarter

44%

39

Gross Revenue Rs. In Crs

47%

47

27

32

39%

50

36

+22%

55

45

+36%

191

140

Q1FY22

Q1FY23

Q2FY22

Q2FY23

Q3FY22

Q3FY23

Q4FY22

Q4FY23

FY22

FY23

Volume (KL)

23%

2,595

2,118

31%

3,052

29%

3,069

+27%

3,824

+27%

12,540

2,334

2,386

3,012

9,850

Q1FY22

Q1FY23

Q2FY22

Q2FY23

Q3FY22

Q3FY23

Q4FY22

Q4FY23

FY22

FY23

13

Category Saliency

Category Mix

120%

100%

80%

60%

40%

20%

0%

30%

70%

35%

47%

53%

24%

38%

62%

29%

Industry Benchmark

LY Category Mix

TY Category mix

Water Base

Solvent Base

29% Emulsions

5%

38% Solvents

62% Water base

9%

9%

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

REVENUE

Improvement in Net Revenue

 Net Revenue growth of 36% v/s last year largely contributed by 31%

growth in Industrial Segment and 28% in Decorative Segment

492.8

 Increase in the dealer network and number of depots across the country

345.3

332.5

363.1

 Increase in the number of tinting machines

 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 and protective coating

 Digital initiatives for consumers, dealers & Shalimar expert painters

Improvement in EBITDA

 EBITDA has improved in the current year as against last year largely due to

 Reduction in input cost by 1.6%

 Procurement through reverse mechanism which has reduced

FY20

FY21

FY22

FY23

material as well as freight cost

Rs. In Crs

16

Cost Trend

67.3

68.0

73.9

72.4

S G O C

96.7

62.5

70.6

Other Expense Cost’ % to Net Sales

90.3

27.9%

18.8%

19.4%

18.3%

E S N E P X E R E H T O

% to Net Sales

FY20

FY21

FY22

FY23

Rs. In Crs

FY20

FY21

FY22

FY23

48.7

36.7

41.5

53.4

14.1%

11.0%

11.4%

10.8%

T S E R E T N

I

T S O C E E Y O L P M E

19.9

19.0

22.3

15.9

Rs. In Crs

FY20

FY21

FY22

FY23

Rs. In Crs

FY20

FY21

FY22

FY23

Employee Cost % to Net Sales

17

Consolidated Profit & Loss Statement Q4 FY23

Particulars (Rs. Crs)

Revenue from Operations

Other Income

Total Income

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

Q4FY23

Q4FY22

Q3FY23

135.8

3.5

139.3

96.2

5.3

-3.3

41.1

105.6

1.9

107.6

76.8

5.3

-6.8

32.3

129.1

1.0

130.1

95.3

5.6

-6.0

35.2

 Revenue:

o Company has reported revenue growth of 29.5% from previous year which is

Q4FY22.

o During this quarter company has grown by 38% in Decorative segment and 22%

in Industrial Segment from last year same quarter i.e., Q4 FY22.

o Company has onboarded 1458 new dealers and deployed more than 250 tinting machines during the quarter 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

29.5%

30.0%

27.0%

 Raw material cost:

15.1

28.6

-2.6

3.2

-5.8

3.8

-

-9.6

-

-9.6

-1.33

9.3

20.7

2.2

3.3

-1.1

5.8

-2.6

-9.5

-

-9.5

-1.59

13.6

21.2

0.4

3.0

-2.6

3.6

-

-6.2

-

-6.2

-0.86

o In the current quarter, the prices of key raw material has been stable which has resulted in the gross margins improvement by 0.5% from Q4FY22 and 2.5% from Q3FY23.

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 for its routine

expenses.

 Finance Cost :

o During the quarter, finance cost has been reduced by Rs. 2.0 Crs as against last

year mainly due to reduction in the borrowings.

18

Profit & Loss Statement

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

EBITDA %

Depreciation and Amortisation Expense

EBIT

Finance Costs

Exceptional Items

PBT

Total Tax Expense

Profit for the year

PAT %

EPS

FY23

492.8

345.6

24.5

-13.4

136.2

27.6%

53.4

90.3

-7.5

-1.5%

12.7

-20.3

15.9

-

-36.2

-

-36.2

-7.3%

-5.01

FY22

363.1

252.5

17.9

-1.9

94.2

26.0%

41.5

70.6

-17.5

-4.9%

13.4

-31.3

22.3

-7.4

-60.9

-

-60.9

-16.8%

-10.76

19

Balance Sheet

Balance Sheet – ASSETS (Rs cr)

Property, Plant and Equipment

Right of Use Assets

Capital Work-in-progress

Intangible Assets

Financial Assets

(i) Other Financial Assets

Deferred Tax Assets (Net)

Non Current Tax Assets

Other Non Current Assets

Total Non-Current Assets

Inventories

Financial Assets

(i) Investments

(ii) Trade Receivable

(iii) Cash and Cash Equivalents

(iv) Other Bank Balances

(v) Other Financial Assets

Current Tax Assets (Net)

Other Current Assets

Total Current Assets

TOTAL ASSETS

Mar-23

Mar-22

Balance Sheet - EQUITY & LIABILITIES (Rs cr)

Mar-23

Mar-22

252.1

16.7

253.7

17.7

1.7

3.3

1.4

-

2.9

0.2

278.3

113.6

-

107.5

21.2

2.2

87.7

1.0

12.3

345.4

623.7

0.2

4.1

1.2

-

3.3

0.5

280.7

95.3

-

78.5

159.8

2.6

14.3

-

15.5

366.0

646.7

Equity Share Capital

Other Equity

Total Equity

Financial Liabilities

(i) Borrowings

(ii) Lease Liabilities

(iii) Other Financial Liabilities

Provisions

Deferred Tax Liabilities (Net)

Other Non-Current Liabilities

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

338.1

352.6

14.4

336.4

350.8

14.6

82.1

0.4

0.1

6.0

2.5

-

1.0

0.1

5.3

2.5

-

23.6

90.9

124.3

0.8

100.0

6.8

10.9

4.7

247.6

623.7

83.7

0.9

97.5

6.7

12.5

3.7

205.0

646.7

20

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

Mar-23

Mar-22

(36.2)

(25.3)

(10.8)

(36.6)

(47.4)

(0.5)

(47.9)

(83.8)

(6.9)

(138.6)

159.8

21.2

(60.9)

(42.9)

(18.1)

(43.5)

(61.6)

(0.2)

(61.8)

(5.8)

224.7

157.1

2.7

159.8

21

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)

Mr. Ronak Jain

+91 98209 50544

ronak.jain@linkintime.co.in