MR. Amit Syngle, MD & CEO
Mr. R.J. Jeyamurugan, CFO & Company Secretary
Mr. Parag Rane, GM – Finance
- Strong growth momentum continued in Q4 following Q2 an Q3.
- Strong performance continued in tier 2/3/4 markets.
- Tier 1 and metro picked up further from Q3.
- strong volume growth in each of the months in the quarter as well as low base of March 2021 (Overall volume growth in Q4 is 48%).
- Material price inflation impacted gross margins adversely in Q4.
- There has been 2.8% of price increase in Q1 of FY22.
- In Q4, 48% of volume growth was recorded and 46% of value growth was recorded
- There was 13% volume growth and 8% value growth in FY20-21
- Double digit volume growth for all the units in foreign markets like Asia, Middle East, and Africa. Ethiopia, Indonesia were exceptions.
- Product portfolio expansion initiatives working well in focus market.
- Waterproofing and premium/luxury emulsion segment doing very well.
- Revenue grew to Rs 729 crores which is up by 22% compared to last year.
- In Q4, profit margins have been adversely affected by the inflation. PBT declined by 38.8% to Rs 34 crores.
Industrial business performance:
- Auto sector sales and builds data exhibit a continued recovery momentum
- Joint venture with PPG of USA, consisting of auto-OEM business (PPG-AP) and findustrial general protected business (AP-PPG). PPG-AP was affected last year but Q4 recorded good results its revenue increase by 39% to Rs 333 crores. AP-PPG business has been very strong. It grew by 63% to Rs 193 crores, but the overall year performance did not do very well for both businesses.
- Sequential uptick in all business segment.
- Robust performance in Q4 supported by strong growth across business segment
- Strong double-digit value growth in Q4.
- Growth supported by both industrial liquid paint and powder segment.
- Sequential uptake continues in both the segment.
- Profitability in Q4 adversely impacted due to higher material prices in both businesses.
Home Improvement business performance:
- Strong growth in Q4 supported by both components as well as full kitchen; full year double digit growth.
- Project segment sequential up tick continued in Q4.
- PBT level loss substantially lesser for full year (1%); supported by improving scale of business and cost optimisation.
- Revenue has increased in Q4 by 84% to Rs 95 crores.
- Full year loss at Rs. 21 crores vs Rs 41 crores loss last year.
- Strong sequential pickup in demand across product segments continued in Q4; double digit growth recorded.
- Project business sequential of tech continued in Q4.
- Benefit of improving scale and cost optimisation for the year.
- Revenue has increased in Q4 by 84% to Rs 93 crores.
- Full real loss at Rs 7 crores versus Rs 29 crores loss last year.
- In Q4, the revenue is up by 46% to Rs 5671 crores, PBDIT is up by 57% to Rs 1321 crores, PBT is up by 70% to Rs 1104 crores, PAT is up by 81% to Rs 820 crores. So, the overall performance of Q4 has been very strong.
- In Q4, the PBDIT margin has gone up by 162 bps.
- In FY21, the revenue is up by 8% to Rs 18,517 crores, despite the slowdown in first 2 quarters. PBDIT is up by 15% to Rs 4860 crores, PBT is up by 19% to Rs 4090 crores, PAT is up by 15% to Rs 3053 crores but because of the tax rate change the PAT would be closer to 19% so the overall performance of FY21 has been very good.
- The PBDIT margin for FY21 has gone up by 173 bps.
- In Q4, the revenue is up by 43% to Rs 6651 crores, PBDIT is up by 52% to Rs 1400 crores, PBT is up by 65% to Rs 1156 crores, PAT is up by 81% to Rs 870 crores. So, the overall performance of Q4 has been very strong.
- In Q4, the PBDIT margin has gone up by 120 bps.
- In FY21, the revenue is up by 7% to Rs 21,713 crores, despite the slowdown in first 2 quarters. PBDIT is up by 15% to Rs 5187 crores, PBT is up by 18% to Rs 4304 crores, PAT is up by 15% to Rs 3207 crores but because of the tax rate change the PAT would be closer to 18% so the overall performance of Q4 has been very good.
- The PBDIT margin for FY21 has gone up by 154 bps.
- The ROCE has gone up from 35.2% to 36.2%. ROE has gone up from 26.6% to 27.6%, the market cap has seen huge increase of 52% from 1598.5 to 2433.2 (market cap figures are in Rs. bn).
- The overall dividend pay-out this year was Rs 17.85, the final dividend pay-out was Rs 14.5. Pay-out was close to 56.1%.
Investing in Sustainable future:
- 188% water replenishment with 58% reduction in specific non-process freshwater consumption
- 34.7% reduction in specific electricity consumption.
- 56% electricity consumption from renewable sources.
- 75.9% reduction in specific effluent generation from baseline year 2013-14.
- 65.3% reduction in specific emissions from baseline year 2013-14.
Strong social commitment:
- Colour academies across the country to train the unemployed youth.
- Touched the lives of about 1.68 lakhs people in terms of skilling them and providing livelihood.
- Work in the field of education, health and hygiene, and water management.
- Contribution to various state disaster management authorities and implementing agencies against COVID-19 pandemic.
- Uncertainty because of the rise with the second wave of COVID 19 seemingly far more widespread in India as well as some in international market, especially in south Asia.
- Well positioned to capture the recovery cycle once we put this wave behind. Dynamic management in the evolving business conditions would be the key.
- Elevated inflationary pressure on the raw material front posing a challenge. Significant increase in input prices since December 2020; uptrend continues.
- Implemented One price increase effective 1st May 2021 of 2.8% at portfolio level.