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Investor Presentation
FY 2007 – Annual Results
Presentation structure
• Results : Q4 – FY 2007
• Results : FY 2007
• Outlook : FY 2008
3
Highlights : Q4 – FY2007
• Consolidated Net sales and operating income
increased by 25.4 % to Rs. 9,589 million
– Good growth witnessed by all business units
– Volume growth has been impressive for the
quarter
• Net Profit has risen by 43 % to Rs. 666 mn
– Good performance by the Decorative Business Unit
– Improved performance by International operations
• Material costs have risen during the quarter
• Operating margins have improved due to
impressive volume growth
4
Presentation structure
• Results : Q4 – FY 2007
• Results : FY 2007
• Outlook : FY 2008
7
• International Operations
11
Environment – FY2007
• India
• GDP growth at 9.0 % for FY07
– Estimated at 9.2 % for FY 08 aided by a surge in industry
and services sector
– Higher growth than FY07 predicted for services and
industrial sector
• Inflation and rising interest rates are a cause for
concern
• Manufacturing, Capital goods, consumer goods,
construction, cement, automobiles – all have
registered good growth for FY2007
• International Operations
16
• Pricing FY 2006
– Four price increases effected during the year.
– Overall prince increase in the year was around 4.25%
– All price increases have been absorbed well by the market
• New Products
– Royale Play range expanded
– Luxury Ultra Gloss enamel launched in many markets
• Colour Next 2007 launched
– The company is beginning to be recognised as an authority in
forecasting colour trends.
18
• Manufacturing facility
– Ankleshwar plant has received environmental
clearance for 100,000 kl from 80,000 kl
19
• International Operations
21
Industrial Operations
Industrial Operations
• International Operations
24
Caribb
CY 2006 CY 2005
ean, Middle Caribbe
24.1% East, an,
41.2% 25.9% Middle
East,
37.8%
South South
Pacific, Pacific,
11.5% 12.6%
South S.E.
S.E. South
Asia, Asia,
Asia, Asia,
9.8% 14.6%
13.3% 9.0%
28
Dividend
Key Ratios
32
Presentation structure
• Results : Q4 – FY 2007
• Results : FY 2007
• Outlook : FY 2008
33
Outlook– FY2008
• India
• Paint Industry expected to grow by 13 – 15 % by value
• Inflation and rising interest rates are a cause for
concern
• In Decorative paints our emphasis would continue to be
to drive top-line growth
• Demand for industrial coatings will continue to be
buoyant
34
Outlook– FY2008
• International
• The focus for international business is to grow top-line
and improve profitability
– The Caribbean, Middle East, South Asia and South Pacific
regions are expected to register an improved performance
– Steps have been taken to reduce losses in the South East
Asia region
– Focus is on increasing market share through initiatives viz.
new product introductions, dealer tinting systems and also
increasing operating efficiency
35
Thank you...