Shalimar Paints Ltd. — Earnings Release 2021

Jun 28, 2021

June 28, 2021

Corporate Relationship Department, Exchange Plaza, 5 Floor, 1* Floor, New Trading Ring, Plot No. C/1, G- Block Rotunda Building, P.J. Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai - 400 001 Mumbai — 400051

BSE Limited National Stock Exchange of India Ltd

(Scrip Code: BSE — 509874, NSE — SHALPAINTS) Subject: Press Release

Dear Sir(s),

We furnish herewith a copy of press release dated June 28, 2021 for your reference and records.

You are requested to kindly take the above information on records.

Thanking You

For Shalimar Paints Limited

o

• icenieintes Chief Financial Officer

Shalimar Paints Limited

Key Consolidated Highlights for FY21

• ¥ EBITDA turns positive to Rs. 3.6 crs
• ¥ Healthy Operating Cashflow of Rs. 15.8 crores
• ¥ Improvement in Working Capital days

Investor Release (28% June 2021): Shalimar Paints Limited engaged in the manufacturing and marketing of decorative paints and industrial coatings has declared its Audited financial statements for the Quarter and Full year ended for the financial year 2021.

Revenue at Rs. 326 Crs Marginal] down by 5% on y-o-y basis despite loss of revenue in

H1FY21 due to COVID-19 restrictions

Reduction in Working Capital to 51 days

compared to 61 days on y-o-y basis

Key highlights of FY21 results (On consolidated basis):

• e Revenue at Rs. 326 crores, marginal de-growth of 5% on y-o-y basis. Revenues was back on track post relaxation of Covid-19 restrictions
  • o However; the performance was impacted in H1FY21 due to lockdown restrictions
  • o Revenue grew by 27% in H2FY21 compared to H2FY20 and by 68% compared to HIFY21
• e Company was able to turn EBITDA postive for FY21 on the back of its 360-degree strategy of controlling costs and improving efficiency
  • © EBITDA stood at Rs. 3.6 crs for FY21 as against loss of Rs. 33.5 crs in FY20
  • o Operating cost (Employee cost + Other Expenditure) was reduced by more than 30% leading to improvement in the operating profitability
  • o Other Expenditure as % to Revenue came down to 19.2% in FY21 from 28.1% in FY20 ie. to Rs. 62.5 crs in FY21 from Rs. 96.7 crs in FY20
• e Working capital days reduced to 51 in FY21 from 61 in FY20

Key Consolidated Financial Highlights:

Investor Release (28% June 2021): Shalimar Paints Limited engaged in the manufacturing and marketing ofdecorative paints and industrial coatings has declared its Audited financial statements for the Quarter and Fullyear ended for the financial year 2021.			Improvement in Working Capital days¥
Positive EBIDTAat Rs. 3.6 Crs		Positive Net OperatingCashflow at Rs. 15.8 Crs
turned positive on y-o-y basis onthe back cost optimizationstrategies		compared to negative Rs. 9 crs ony-o-y basis		basis
Key highlights of FY21 results (On consolidated basis):
Revenue at Rs. 326 crores, marginal de-growth of 5% on y-o-y basis. Revenues was back on trackepost relaxation of Covid-19 restrictions
However; the performance was impacted in H1FY21 due to lockdown restrictionso
Revenue grew by 27% in H2FY21 compared to H2FY20 and by 68% compared to HIFY21o
Company was able to turn EBITDA postive for FY21 on the back of its 360-degree strategy ofecontrolling costs and improving efficiency
EBITDA stood at Rs. 3.6 crs for FY21 as against loss of Rs. 33.5 crs in FY20©
Operating cost (Employee cost + Other Expenditure) was reduced by more than 30% leadingoto improvement in the operating profitability
Other Expenditure as % to Revenue came down to 19.2% in FY21 from 28.1% in FY20 ie. tooRs. 62.5 crs in FY21 from Rs. 96.7 crs in FY20
Working capital days reduced to 51 in FY21 from 61 in FY20e
Key Consolidated Financial Highlights:
os	ne	oe
Revenues	325.6	343.9		-5% (Marginal dip)
EBITDA	3.6	£33.53		Turns Positive
Net Cashflow from Operating activities	15.8	£95		Turns Positive
Working Capital (No. of Days}	51	61		Reduction by over 17%

Commenting on the Results, Mr. Ashok Gupta, Managing Director, Shalimar Paints said,

It was a challenging year, despite that the company continued its focus towards operational efficiency along with cost rationalization strategy which resulted into operating profitability and positive operating cashflow.

The Company ended FY21 on a very positive note by turning EBITDA positive of Rs. 4 crs with healthy Operating cashflow of Rs. 16 crs. 360-degree business strategy has started yielding results.

Revival & opening of economy post pandemic led to normalcy in business and we have observed a V-shaped recovery and was able to bounce-back immediately.

For FY21, company reported marginal dip in Revenue of 5% to Rs. 326 crs, this was due to loss of revenue in H1FY21 to COVID-19 restrictions.

To continue to perform even in these challenging times, I would like to sincerely thank all the employees for their support and their ability to navigate through these uncertain times. It was because of their efforts and dedication the Company has bounce back much stronger.

We believe we are working in the right direction for a long-term sustainable growth.

About Shalimar Paints Limited

Established in 1902, the history of Shalimar Paints is the history of the paint industry in India. The company is engaged in the manufacturing and marketing of decorative paints and industrial coatings. The Decorative business covers both Interior and Exterior paints, where it has a number of flagship brands. Some of India's iconic buildings and structures such as the Howrah Bridge, Rashtrapati Bhawan, Salt Lake Stadium, All India Institute of Medical Sciences, and many others, have been painted with Shalimar Paints. The company currently has three manufacturing units and a strong footprint across the country with over 30+ branches and depots. The wide and expansive network of RDC and depots spread across the country ensures that the products are available at every doorstep. Apart from India, Shalimar also caters to consumers in Nepal, Bhutan, Dubai, and Seychelles.

Safe Harbor

Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These statements are subject to risks and uncertainties. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the Company's operations include a downtrend in the industry, global or domestic or both, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, technological changes, investment and business income, cash flow projections, interest and other costs. The Company does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date thereof.