Financial Performance
• Revenue Growth: 16% increase to Rs. 312 crores for FY ending March 31, 2024.
• Challenges: Muted demand and competitive pricing pressures in Q4.
Key Developments
• Distribution Agreement: Partnership with OIKOS S.P.A. Italy for high-value paint products.
• Acquisition: Welcome brand acquired for Rs. 20 crores to boost sales and profitability.
• Expansion Plans: Aim to add 150 new retailers in FY25, focusing on regions outside Delhi NCR.
Export Opportunities
• Asia Pacific Focus: Secured orders for 346 containers; initial exports to neighboring countries.
• Capacity Utilization: Projected 90% utilization at Sonipat facility within 1-1.5 years.
Revenue Projections
• FY25 Growth: Anticipated minimum 40% revenue growth, driven by wood coating segment (25-30% growth expected).
• Margins: Expected to maintain 22-23% margins, with a slight dip in Q1.
Product Segmentation
• Decorative Paints: Contributed Rs. 24 crores; plans to establish wall paint as a separate vertical.
• Wall Paint Revenue: Expected to grow from Rs. 24 crores to Rs. 60-65 crores in FY25.
Inventory Management
• High Inventory Days: Around 200 days due to reliance on imports; expected reduction with a 55% decrease in imports.
New Product Segments
• Ultra High Luxury Segment: Retailing at Rs. 700 per liter; competitive pricing expected.
• OEM Growth: Strong growth in the Indian furniture industry; Rs. 60 crores revenue from North India.
Facility Utilization and CAPEX
• Sonipat Facility: Expected peak utilization of 90% in 12-18 months.
• Future Investments: Plans for a wood coating facility in Gujarat and increased production capacity.
Competitive Landscape
• Polyurethane Market: Acknowledged competitive pressures; strong growth in acrylic PU segment.
• Pricing Advantage: Acrylic PU commands a 30%-35% premium over standard PU.
Growth Outlook
• CAGR Projections: Expected 40% CAGR in topline growth; maintaining EBITDA margins of 20-23% beyond FY25.
• Strategic Developments: Optimism about future growth driven by partnerships and product introductions.

Earnings Overview
• Date of Call: May 17, 2023
• Revenue Growth: 34% increase for FY 2023, totaling INR 268 crores.
• Q4 Performance: 26% year-over-year revenue growth; net profit increased by 53%.
• Challenges: External factors impacted Q4 sales.
Strategic Initiatives
• New Brand Launch: Introduction of luxury paint brand OIKOS in India.
• Manufacturing Agreement: Collaboration with Sirca S.P.A Italy for domestic production of polyurethane wood coatings.
• Local Manufacturing: Plans to produce 10 previously imported products locally to reduce costs and inventory days.
Capacity and Growth Projections
• Current Capacity Utilization: 30-35%, with a target of 80% as production increases.
• Revenue Potential: Projected INR 400 crores at peak capacity.
• CAGR Target: Aiming for a 40% compound annual growth rate.
Financial Management
• Increase in Financial Assets: Rise to INR 35 crores due to short-term investments.
• Credit Control: Implementation of a credit control team to manage receivables effectively.
• Receivable Days: Average of 45 days for dealers, up to 90 days for OEM sales.
Competitive Positioning
• Market Strategy: Emphasis on technical expertise, contractor loyalty programs, and distribution network.
• Regional Sales: 70% of sales from Northern India, with growth expected in other regions.
Advertising and Capital Expenditure
• Advertising Budget: 5.5% of projected revenue for advertising; INR 15-20 crores planned for FY '23.
• Distribution Spending: Approximately 3-3.5% of revenue; INR 10-12 crores for FY '23.
• Capex Plans: INR 15 crores for new manufacturing initiatives; no additional capex expected for FY '25.
Future Directions
• Manufacturing vs. Trading: Increased manufacturing while still relying on imports for luxury products.
• Dealer Network Expansion: Plans to grow dealer network by 15-20% in Northern India and over 100% in other regions by year-end.
• Advertising Campaigns: Collaborations with Japanese marketing firms to enhance brand visibility.
Conclusion
• Growth Opportunities: Significant potential in the coatings market with plans to enhance visibility and capitalize on market opportunities.
• Closing Remarks: Gratitude expressed to participants; intention to follow up on additional questions.