Shalimar Paints Limited has informed the Exchange about Investor Presentation
SHALIMAR PAINTS
February 10, 2021
BSE Limited
National Stock Exchange of India Ltd
Corporate Relationship Department, 1 Floor, New Trading Ring,
,
Rotunda Building, P.J. Towers,
Dalal Street, Fort, Mumbai - 400 001
Exchange Plaza, 5" Floor, Plot No. C/1, G- Block
Bandra Kurla Complex, Bandra (E), — 400051 Mumbai
Reference Scrip Code- NSE-SHALPAINTS, BSE-509874
Subject: Intimation of Investor’s Presentation
Dear Sir/Madam,
Please find attached the Investor’s Presentation for the quarter and nine months ended 31° December, 2020. The same is also being uploaded on the website of the Company
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AES COM: «
!
This is for your information and records.
Thanking you
For Shalimar Paints Limited
SHALIMAR PAINTS
Shatimar Paints Ltd. Corporate Giffice : ist Floor, Plot No. 28, Sector 32, Gurugram 122001, Haryana Regd. Office: Stainless Centre, 4th Floor, Plot No. 50, Sector- 32, Gurugram-122001, Haryana {india} Br +91 126 481 6600 Fi +91 124 461 6659 E: askus@shalimarpaints.com | www-shalimarpaints.com | CIN: L24222HR1902PLC065611
|
& SHALIMAR
PAINTS
Investor Presentation
Har Rang Khoobsurat
Disclaimer
Certain statements in this communication may be considered as " forward looking statements “ within the meaning of applicable law and regulations. These forward - looking statements involves a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward looking statements , important development that could affect the company’s operations include changes in the industry structure, significant changes in politics and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.
Shalimar Paints Limited does not undertake to revise any forward - looking statement that may be made from time to time by or on behalf of
the company.
Shalimar Paints Limited will not be in any way responsible for any action taken based on such statement and undertake no obligation to publicly update these forward looking statement to reflect subsequent event or circumstances,
Contents
Company Overview
Industry Overview
Critical Analysis & Outlook
Summary
Company Overview
Snapshot
Established in
1902
India's oldest Paint Brand
EB
Production of
GIO00KL
of Paint every year
Our Network
9300+
Dealers
We make
Decorative & Industrial
Paint
Our Factilities
4&1
Factories & R&D centre
Pyeul
We are
500+
People Strong
Company Overview Key Milestones
1928
1963
1989
: P. Johnson bought control, 1 became part of Red Hand ; Composition '
' ' '
’
: Name changed to 1 |
Shalimer Paints Ltd on 18th Sep
' ' '
Sold to Jhunjhnuwatas & OP. Jindal Group for jointly
; 4 ; Managing it ‘
' ' '
1902 Shalimar Paints Colour& Varnish Co. Was incorporated in India
' ' '
'
| | 1961 Became a public limited | } company on 27th May :
'
' ' '
: 7 : 1964 International Paints | acquires US-based : Red Hand Composition :
'
'
' ' '
' : : 1992 Nasik | ! plant started ;
'
2003
Acquires the American Paints unit in Sikandrabad near Delhi
2017
Chennai plant started
' ' ' ' ' ' ; ' ' 1 ' t
! 2008
Enters into technical collaboration with KCI, Korea for pre-coated metal coatings
2018 Nasik Plant Re-instatement started
Company Overview: Our Products
} 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 plants, polyurethane paint for fighter aircraft and railway coaches, etc. * One of
in high-performance
resistant
coatings
nuclear
players
largest
power
Indian
the
for
Protective Coatings
* Significant presence in General Industrial (Product Finish)
and Packaging coatings
| Company Overview: Our Products - Decorative Paints
Oem
Surface Decoration
.
Emulsions
.
Distemper
Enamel
W . og Finishes
Floor Coatings
.
men So ne ‘ Paints
Interior ———
Exterior —
Interior ———
All Surfaces oo
Interior Wood
Exterior Walls surfaces oo Floors —
Interior Floors
Exterior
Surface Preparation & Protection
Primer
Putty
Interior Walls
Exterior Walls
Metal Surfaces
Wood Surfaces
Interior Walls
Exterior Walls
Oe NBT
Company Overview: Key Projects - Decorative Paints
SHALIMAR PAINTS
Rashtrapati Bhawan, Delhi
Howrah Bridge, Kolkata
Bestech Group, Gurgaon
BHEL Township, Hyderabad
_
Indian Institute of Technology, Delhi
Wave Mall, Ludhiana
VBPS, Noida
Silchar Airport, Assam
And many more....
10
company Overview: Our Products & Key Projects - Industrial Paints
& sage
Protective Coating
Marine
Key Projects
NTPC IVRCL, Main Plant, Allahabad
Indian Oil Corporation, Panipat
JSW Energy Ltd., Ratnagiri
Grasim Industries Ltd., Pune
And many more
|Compa ny Overview: Key Customers
© magne
We service marquee customers in oil & gas, petrochemicals, fertilizers, steel, power, engineering, shipping and auto- ancillary industries.
<f-
eESsSsAR
STEEL & POWER — nee
ec ian
EDP HYUNDAI
TINFLATE
JINDAL”
St
Lidaied
indianOil
Uhde @
Pun Loyd
me
Ww Ieraamuens
<5 TATA TATA STEEL
Qe
en
And many more....
GSE
Industry Overview : Demand Drivers - Industrial segment
iM SHALIMAR
‘
}
PAINTS.
Increased thrust on core infrastructure (Power, Ports, Oil & Gas, etc.) to support demand in this category
Growth in construction industry and higher infrastructure spend to support demand for this category
sl
Protective & General Industrial Coatings
Coil Coatings, Pipelines & Road Infrastructure
Automotive Coatings
Powder Coatings
Continued growth in domestic production of automobiles complemented with easy availability of auto loans to support demand
Robust growth in demand for consumer durables expected to act as drivers for demand in this category
Source: Research reports
a
14
Industry Overview: Demand Drivers Decorative segment
Rapid urbanization ensuring high rate of conversion from lime wash to distempers and more to emulsions
of housing Easy availability loans are leading to continued demand in housing sector
Repainting cycle in metros has come down to 3-4 years and in
other areas to 5-6 years
Increasing purchasing power is ensuring high growth rate for premium products
Repainting (75% of demand)
Decorative segment demand drivers
San Tatts (25% of demand)
Increasing urbanization to
| concen southmed green i
housing sector
Growth in the number of nuclear families is another factor driving demand for new households
Affordability and easy availability are fueling re-painting demand
increasing demand for IT/ITES parks, organized retail sector, office spaces spaces is driving need for commercial
Industry Overview : Global Picture
&, SHALIMAR Se
PAINTS
FO
,
Global Market Share
Asia Pacific Market Share
§ Asia Pacific
EMEA
US and Canada
Latin America
@ China
India
Japan
Korea
M® Others
—
’ SS =
Source: Research reports
__
—
Se
z
16
Industry Overview : At a Glance
i SHALIMAR ™ f
PAINTS.
Market share by category (in %) paints Decorative
7
Market size of paint companies (in %)
Growth of paint industry from FYO8 to FY20 -10.4 per cent
Asian Paints
Berger Paints
Kansal Nerolac
|
| |
FYO8
FYI2
|
| | FYI6 ~~ FY20
ae, 600 500
~ 400 ~~ 300 ~~ 200
100
49
17
;
Industrial paints
Others
Akzo Nobel
CS
* https://www.equitymaster.com/research
Critical Analysis & Outlook-Key Highlights
} SHALIMAR
PAINTS.
Company has shown V Shaped Recovery in Q-2 and Q-3 FY21
EBITDA Growth “25%” Q-3 FY 21(Q-O-Q)
Production Growth “33%” Q-3 FY 21 (Q-O-Q) (Other Than Putty)
Decorative paints Segment has ace i )\ e4 ie in Q-3 FY 21 (Q-O-Q) (Other Than Putty)
Q-3 FY 21(Q-0-Q)
Industrial Paints segment has grown by “10%” In Q-3 FY 21(Q-O-Q)
Revenue Growth “20.45%”
Critical Analysis & Outlook- Past Performance(Year Wise)
, SHALIMAR PAINTS:
Net Sales
Other Income
Total Income
Total Expenditure
EBIT
Intrest
Depreciation
Tax
Exception Item
Net Profit
344.00
1.00
345.00
377.00
(32.00)
20.00
11.00
(18.00)
(7.00)
(38.00)
288.00
2.00
290.00
349.00
(59.00)
25.00
9.00
(27.00)
(16.00)
(82.00)
278.00
1.00
279.00
312.00
(33.00)
26.00
8.00
22.00
0.00
(45.00)
20
| Critical Analysis & Outlook- Financial Summary
Oem
Financial Summary : An Overview (Standalone)
Teme ecelc)
Q3- FY21
Q2- FY21
Q1- FY21
Total Revenue
COGS
Employee Expenses
Other Expenses
EBITDA
Intrest Expenses
Cash Profit/ (Loss)
Depreciation
PBT
Exceptional Items
Taxes
92.63
59.06
11.96
15.73
5.88
4.91
0.97
3.31
(2.34)
0.00
4.60
77.03
50.06
9.63
12.62
4.72
4.65
0.07
3.33
(3.26)
0.00
0.34
44.93
31.01
9.59
9.21
(4.88)
4.56
(9.44)
3.33
(12.77)
(2.00)
(4.24)
345.27
232.28
48.68
96.42
(32.11)
19.85
(51.96)
10.84
(62.80)
6.95
(17.97)
PAT
EBITDA has been increased by 24.58% on Q-O-Q basis in Q-3
Revenue has been increased by 20.25% on Q-O-Q Basis in Q-3
1. 2.
(10.53)
(37.88)
(6.94)
(3.60)
| Critical Analysis & Outlook- Financial Summary
nnn
Financial Summary : An Overview (Consolidated)
Teme ecelc)
Q3- FY21
Q2- FY21
Q1- FY21
Total Revenue
COGS
Employee Expenses
Other Expenses
EBITDA
Intrest Expenses
Cash Profit/ (Loss)
Depreciation
PBT
Exceptional Items
Taxes
92.55
59.06
11.96
15.73
5.80
4.91
0.89
3.32
(2.43)
0.00
4.60
76.95
50.06
9.63
12.62
4.64
4.65
(0.10)
3.33
(3.34)
0.00
0.34
44.85
31.01
9.59
9.21
(4.96)
4.56
(9.52)
3.33
(12.85)
(2.00)
(4.24)
344.98
232.28
48.68
96.42
(32.40)
19.85
(52.25)
10.84
(63.10)
6.95
(17.97)
PAT
EBITDA has been increased by 25% on Q-O-Q basis in Q-3
Revenue has been increased by 20.27% on Q-O-Q Basis in Q-3
(38.18)
(10.61)
(3.68)
(7.03)
2.
1.
| Critical Analysis & Outlook- Sales Analysis
Oem
Net Sales (RS. in CR)
85
32
84
94
93
77
45
Ql FY 19-20
Q2 FY 19-20
Q3 FY 19-20
Q4 FY 19-20
Ql FY 20-21
Q2 FY 20-21
Q3 FY 20-21
1.
Decrease in Revenue has been recorded due to COVID-19 Pandemic
Company has shown the V-Shaped recovery OO LT
2.
Critical Analysis & Outlook- Sales Analysis-Segment Wise
©”*"
Deco Sale (RS. in CR)
Industrial Sale (Rs. in Cr.)
21.78 Comparison of Q-3 FY 20 by 4.49%
Decrease in Industrial Segment’s Revenue has been recorded due to COVID- 19 Pandemic, Company has shown a V-Shaped recovery in this area Revenue from Decorative Paint’s segment has been grown in Q-3 FY 21 in
em—2019-20 = 2020-21
om—2019-20 == 2020-21
2.
1.
May
Oct
May
Nov
Nov
Aug
Aug
Apr
Apr
Dec
Dec
Sep
Sep
Jun
Oct
Jun
Jul
Jul
| Critical Analysis & Outlook- Sales Analysis-Volume Wise
®*""
Total Sales Volume (KL)
Sales Volume (KL)
11,1711,
11,493
11,471
es
9,325
10,188
9,494
| 5,130
Ql
Q2
Q3
|
Q4
1.
MFY 2020-21
MFY 2019-20
Vat 3¥/0
Net increase in sales volume in Q-3 FY 21 is of approx. 2,000 KL in compare
Anincrease of 322KL has been recorded in Q-3 FY-21 vs Q-2 FY-20 i.e.
to Q-2 FY 21i.e. of 21.05%
Q2 Fy19-20
Q3 Fy19-20
Q4 Fy 19-20
Q2 FY 20-21
Ql FY 20-21
Ql Fy 19-20
Q3 FY 20-21
2.
Critical Analysis & Outlook- Production Qty. (KL)
“o,
*
SHALIMAR PAINTS.
Chennai | 1,363 | 1,859 sKBD Nasik Total Qty.(KL)}
|-26.68%| | 5,167 | 4,633 | 11.53%) | 2,637 | 1,572 | 67.75% | 9,167 | 8,064 | 13.68%}
46.09% 933 4094 | 26.21% 41.55% 1863 | 33.05% 6890 |
Summary & Road Ahead
“o, Ny
SHALIMAR PAINTS.
Expanding Sales
Controlling Costs
Launching New Products
Being Net Positive
Improving Servicing
Expenditure on R & D
27
e V
e e
Thank you