ASIAN PAINTS

RESULTS FOR THE FINANCIAL YEAR

Revenue Account
Gross Sales
Net Sales and Operating Income
Growth Rates (%)
Materials Cost
% to Net Sales
Overheads
% to Net sales
Operating Profit
Interest Charges
Depreciation
Profit Before Tax and Exceptional items
% to Net Sales
Growth Rates (%)
Exceptional items
Profit Before Tax and after Exceptional items
% to Net Sales
Profit After Tax
Return on average net worth (RONW) (%)
Capital Account
Share Capital
Reserves and Surplus
Deferred Tax Liability (Net)
Loan Funds
Fixed Assets
Investments
Net Current Assets
Debt-Equity Ratio
Market Capitalisation
Per Share Data
Earnings Per Share (EPS) (Rs.)
Dividend (%)
Book Value (Rs.)
Other Information
Number of Employees

Corporate Bridge
2001

2002

1,470
1,233
13
661
53.61
370
29.99
212
22
34
156
12.64
9
-

2003

1,599
1,371
11
728
53.04
418
30.46
241
15
45
181
13.23
16
-

1,807
1,535
12
807
52.58
459
29.89
282
8
49
225
14.65
24
-

156
13
106
27

181
13
114
28

225
15
142
32

64.2
347
227
381
44
214
0.55:1
1,580

64.2
346
61
111
390
63
130
0.27:1
2,106

64.2
412
58
104
366
148
124
0.22:1
2,119

11.00
70.00
64.10

11.90
90.00
64.00

14.80
110.00
74.30

3,197

3,188

3,327

2004

2005

2006

2,026
1,696
10
944
55.63
483
28.47
291
5
48
238
14.02
6
(7)
231
14
148
29

2,339
1,955
15
1,128
57.73
532
27.24
325
3
48
275
14.07
16
(4)
271
14
174
31

2,777
2,319
19
1,352
58.29
616
26.54
388
4
46
339
14.60
23
(34) 305
13
187
31

2007

2008

3,361
2,821
22
1,661
58.86
739
26.19
462
7
45
410
14.53
21

4,063
3,419
21
1,956
57.21
906
26.52
617
8
44
565
16.53
38
-

410
15
272
40

565
17
375
45

2009
5,003
4,270
25
2,607
61.05
1,102
25.80
621
10
57
554
12.97
(2)
(6)
548
13
362
36

2010 Average
5,754
5,125
20
2,840
55.42
1,275
24.87
1,154
14
61
1,079
21.06
95
25
1,105
22
775
56

95.9
436
49
71
344
243
64
0.13: 1
2,914

95.9
476
31
88
320
258
113
0.15: 1
3,751

95.9
526
29
91
325
275
143
0.15:1
6,178

95.9
648
22
126
347
334
211
0.17: 1
7,336

95.9
833
32
95
539
423
93
0.09: 1
11,510

95.9
999
48
75
712
235
270
0.07: 1
7,539

95.9
1,461
48
69
1,088
704
(118)
0.04: 1
19,593

15.40
85.00
55.40

18.10
95.00
59.70

19.50
125.00
64.90

28.40
130.00
77.60

39.10
170.00
96.80

37.78
175.00
114.10

80.74
270.00
162.34

3,356

3,550

3,681

3,868

3,924

4,260

4,382

16.84
56.34
27.60

14.83

14.66
35.62

132.00

ASIAN PAINTS

Corporate Bridge

INCOME STATEMENT (in INR mn)

INCOME
Sales and operating income (Net of discs)
Less: Excise duty
TOTAL SALES

2006

2007

2008

34,135.8
3,925.5
30,210.4

41,335.2
4,635.5
36,699.7

49,385.6
5,313.3
44,072.3

EXPENDITURE
Material Cost
Employee Cost
SG&A costs
EBITDA
Less : Interest
Less : Depreciation/Amortisation
Add: Other Income
EBT

17,921.0
2,233.3
6,139.2
3,916.9
114.3
596.9
320.3
3,526.0

21,994.0
2,620.4
7,304.7
4,780.6
189.1
615.4
372.5
4,348.6

25,776.4
3,066.6
8,623.5
6,605.8
211.6
591.7
596.0
6,398.5

Add/(Less) : Exceptional Item

PROFIT BEFORE TAX AND PRIOR PERIOD ITEMS

(76.0)
3,450.0

(77.6)
4,271.0

(68.4)
6,330.1

(Less) : Prior period items (Net)

PROFIT BEFORE TAX

(10.3)
3,439.7

26.5
4,297.5

(15.9)
6,314.2

Less: Provision for Taxation:

Current Tax
Deferred Tax (Refer Note B - 8 in Schedule M)
Fringe Benefit Tax
(Excess) Tax Provision for earlier years
PROFIT AFTER TAX
Less: Minority Interest
NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS
Add : Balance brought forward from previous year
AMOUNT AVAILABLE FOR APPROPRIATION

1,238.3
(17.8)
54.4
47.9
2,116.9
23.3
2,093.6
1,000.0
3,093.6

1,483.1
(28.8)
48.1
(35.8)
2,830.9
20.6
2,810.3
1,100.0
3,910.3

1,847.9
105.6
64.3
15.9
4,280.5
188.7
4,091.8
1,500.0
5,591.8

431.6
767.4
171.0
651.5
1,100.0
3,121.5

1,151.0
95.9
180.6
982.8
1,500.0
3,910.3

623.4
1,007.1
277.2
1,684.1
2,000.0
5,591.8

22.12
22.12
12.50
95.92

29.30
29.30
13.00
95.92

43.37
42.66
17.00
95.92

12,289.3
3,916.9

14,705.7
4,780.6

18,295.9
6,605.8

APPROPRIATIONS
Dividend to shareholders of parent company:
Equity Shares - Interim dividend
Proposed Final dividend
Tax on Dividend (includes tax on proposed div)
Transfer to General Reserve
Balance carried to Balance Sheet
Per share data
EPS (Rs.) Basic and Diluted - before exc item
EPS (Rs.) Basic and Diluted - after exc item
DPS (Rs)
No of shares - eop
Key Figures
Gross Profit
EBITDA

Operating Profit (EBIT)

PBT
Net Income
Margins
Gross Profit
EBITDA
Operating Profit (EBIT)
PBT
Net Income

3,320.0
3,526.0
2,093.6

40.68%
12.97%
10.99%
11.67%
6.93%

Purchases
Assumptions
Sales (Growth - YoY)
Material Cost (as a % of Sales)
Overheads
Employee Cost (as a % of sales)
SG&A costs (as a % of sales)
Other income (Growth - YoY)
Other income (as a % of sales)
Effective Tax Rate (tax /EBT)
Dividend Payout Ratio
Divident Tax Rate
Minority Interest as % of PAT
We will wait for another 2minutes

4,165.2
4,348.6
2,810.3

40.07%
13.03%
11.35%
11.85%
7.66%
23,085.4

6,014.1
6,398.5
4,091.8

41.51%
14.99%
13.65%
14.52%
9.28%
26,936.4

59.32%

21.48%
59.93%

20.09%
58.49%

7.39%
20.32%

7.14%
19.90%

6.96%
19.57%

1.1%
38.5%
57.3%
14%
1.1%

16.32%
1.0%
34.1%
44.4%
14%
0.7%

60.00%
1.4%
32.2%
39.8%
17%
4.4%

2009

2010

2011

2012

2013

2014

2015

60,445.1
5,806.1
54,639.0

71,065.6
4,256.2
66,809.4

83,614.7
6,552.3
77,062.4

88,621.8

101,915.0

117,202.3

134,782.6

33,706.4
3,715.2
10,516.7
6,700.7
263.2
743.8
510.1
6,203.8

37,579.6
4,362.8
12,593.0
12,274.0
284.7
835.6
1,405.0
12,558.7

44,745.6
4,539.9
14,647.2
13,129.7
222.3
1,131.3
826.3
12,602.4

51,400.6
5,317.3
16,838.1
15,065.7
223.0
1,329.3
886.2
14,399.6

59,110.7
6,114.9
19,363.9
17,325.6
223.0
1,528.7
1,019.2
16,593.0

67,977.3
7,032.1
22,268.4
19,924.4
223.0
1,758.0
1,172.0
19,115.4

78,173.9
8,087.0
25,608.7
22,913.0
223.0
2,021.7
1,347.8
22,016.2

11.5
12,570.2

12,602.4

14,399.6

16,593.0

19,115.4

22,016.2

12,602.4

14,399.6

16,593.0

19,115.4

22,016.2

4,319.9

4,977.9

5,734.6

6,604.9

10,079.7
453.6
9,626.1

11,615.1
522.7
11,092.4

13,380.8
602.1
12,778.7

15,411.3
693.5
14,717.8

(12.4)
6,191.4
(22.7)
6,168.7
1,793.4
163.2
73.6
(56.3)
4,194.8
216.4
3,978.4
2,000.0
5,978.4

12,570.2
3,731.8
55.4
(56.1)
8,839.1
482.7
8,356.4
2,300.0
10,656.4

3,555.0
281.5
(47.6)
8,813.5
381.1
8,432.4
6,000.0
14,432.4

dividends n minority shareholders - not paid in cash

taxes -> PAID in cash
623.5
1,055.1
288.8
1,711.0
2,300.0
5,978.4

815.3
1,774.5
433.3
1,633.3
6,000.0
10,656.4

815.3
2,254.1
501.1
4,861.9
6,000.0
14,432.4

41.61
41.48
17.50
95.92

87.00
87.12

87.91
87.91

20,932.6
6,700.7

29,229.8
12,274.0

32,316.8
13,129.7

3,369.2
539.1

3,882.4
621.2

4,472.5
715.6

5,151.2
824.2

5,956.9
6,203.8
3,978.4

38.31%
12.26%
10.90%
11.35%
7.28%
34,255.8

11,438.4
12,558.7
8,356.4

43.75%
18.37%
17.12%
18.80%
12.51%
39,448.9

11,998.4
12,602.4
8,432.4

41.94%
17.04%
15.57%
16.35%
10.94%
48,241.1

51,020.4

61,011.8

70,163.6

80,688.1

23.98%
61.69%

22.27%
56.25%

15.35%
58.06%

15.00%
58.00%

15.00%
58.00%

15.00%
58.00%

15.00%
58.00%

6.80%
19.25%

6.53%
18.85%

5.89%
19.01%

6.00%
19.00%

6.00%
19.00%

6.00%
19.00%

6.00%
19.00%

-14.41%
0.9%
32.0%
42.2%
17%
5.2%

175.44%
2.1%
29.7%
31.0%
17%
5.5%

-41.19%
1.1%
30.1%
36.4%
16%
4.3%

1.00%
30.00%
35.00%
16.00%
4.50%

1.00%
30.00%
35.00%
16.00%
4.50%

1.00%
30.00%
35.00%
16.00%
4.50%

1.00%
30.00%
35.00%
16.00%
4.50%

Corporate Bridge

ASIAN PAINTS
BALANCE SHEET (in INR m)
FUNDS EMPLOYED
Shareholders' Funds
Share Capital
Reserves and Surplus
Shareholders' equity
Loan Funds
Secured Loans
Unsecured Loans
Loans
Deferred Tax Liability (Net)
Minority Interest
Total
APPLICATION OF FUNDS
Goodwill on consolidation
Fixed Assets
Gross Block
Less: Depreciation/Amortisation
Net Block
Add : Capital Work in Progress
Net Fixed Assets
Investments
Total Long Term Assets

Current Asset
Current Asset

Total

Current Assets, Loans and Advances

Cash and Bank Balances
Interest accrued on investments
Inventories
Sundry debtors (receivables)
Other Current Assets
Loans and Advances
Total Current Assets
Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Total
check (moment of truth!) ( A = L + E)

Schedule G

2006

2007

959.2
5,503.3
6,462.5

959.2
6,818.7
7,777.9

1,127.1
1,485.7
2,612.8
340.7
600.3
10,016.3

1,211.0
1,850.7
3,061.7
267.9
600.8
11,708.3

448.7

468.6

9,765.6
5,584.4
4,181.2
337.4
4,518.6

10,831.5
6,037.7
4,793.8
137.8
4,931.6

1,640.6
6,607.8

1,927.2
7,327.4

734.1
4,888.7
3,475.2
611.2
745.2
10,454.4

1,053.9
0.3
5,980.1
4,206.1
693.6
979.3
12,913.3

5,787.4

7,870.4

1,258.5
7,045.9
3,408.5
10,016.3

662.0
8,532.4
4,380.9
11,708.3

Current Liabilities
1 Acceptances
2 Sundry Creditors
Trade (payables)
Others
3 Investor Education etc
4 Other Liabilities

5787.37
1,227.48
3296.3
2,266.92
1,029.38
24.15
1,239.44

7870.4
1729.3
4485.3
3692.8
792.5
62.9
1592.9

2.9%
2.0%

2.2%
1.7%

Assumptions:

B
A
A
S
E

Fixed Assets
Net Fixed Assets - Opening
Add: Capex
Add: Acquisitions / (Disposals)/WIP addns
Less: Depreciation
Net Fixed Assets - Ending
Capex (as a % of sales)
Depreciation (as a % of sales)
Debt
Average Debt
Interest paid
Interest cost %

2,837.2
189.1
6.7%

Cash and Bank Balances

Interest earned
Interest rate %

Ratio Analysis
Solvency Ratios
Current ratio
Quick ratio
Cash ratio

Turnover Ratios
Receivables turnover
Inventory turnover
Payables turnover

1.5
0.8
0.1

1.5
0.8
0.1

9.6
4.0
7.7

Sales
Material costs
Purchases

Average receivables collection period

Average inventory processing period
Average payment period
Cash Conversion Cycle

38.2
90.2
47.1
81.3

Other Receivables
Other Current Assets as % of Sales
Loans and Advances as % of Sales

2.0%
2.5%

1.9%
2.7%

Other Payables
Acceptances as % of COGS
Others Creditors as % of COGS
Investor Education etc as % of COGS
Other Liabilities as % of COGS

6.8%
5.7%
0.1%
6.9%

7.9%
3.6%
0.3%
7.2%

Operating Efficiency
Total asset turnover
Net fixed asset turnover
Equity turnover

Operating Profitability
Gross Profit Margin
Operating Profit Margin
Net Profit Margin

3.4
7.8
5.2

40.7%
11.0%
6.9%

40.1%
11.3%
7.7%

Return on total capital

Return on total equity

44.0%
39.5%

ROE DuPont Analysis

Profit Margin
Asset Turnover
Financial Leverage
ROE

7.7%
3.4
1.53
39.5%

Financial Risk Ratios

Debt to equity ratio
Debt ratio
Interest coverage ratio

0.4
0.3
34.3

0.4
0.3
25.3

e Bridge
2008

2009

2010

2011

2012

2013

2014

959.2
8,864.5
9,823.7
1,211.2
1,540.9
2,752.1
390.8
573.7
13,540.3

959.2
11,072.5
12,031.7

959.2
16,140.6
17,099.8

959.2
20,915.0
21,874.2

959.2
26,632.9
27,592.1

959.2
33,221.8
34,181.0

959.2
40,812.4
41,771.6

1,037.0
2,049.2
3,086.2
533.1
755.7
16,406.7

637.0
1,655.3
2,292.3
562.3
944.5
20,898.9

499.7
1,847.3
2,347.0
851.8
1,098.9
26,171.9

499.7
1,847.3
2,347.0
851.8
1,552.5
32,343.4

499.7
1,847.3
2,347.0
851.8
2,075.2
39,455.0

499.7
1,847.3
2,347.0
851.8
2,677.3
47,647.7

443.5

505.5

367.3

371.9

371.9

371.9

371.9

12,112.2
6,336.6
5,775.6
1,141.8
6,917.4

14,614.1
6,483.8
8,130.3
921.1
9,051.4

15,003.9
6,275.7
8,728.2
4,072.3
12,800.5

19,877.5
7,150.7
12,726.8
433.2
13,160.0

13,603.1

14,112.7

14,698.7

2,766.5
10,127.4

784.0
10,340.9

6,241.1
19,408.9

9,219.5
22,751.4

9,219.5
23,194.5

9,219.5
23,704.1

9,219.5
24,290.1

1,107.1
0.9
7,140.1
4,603.3
559.6
1,525.2
14,936.2

2,103.7
5.5
7,689.5
5,719.2
491.2
1,978.0
17,987.1

1,058.3
2.1
9,558.8
5,425.2
646.3
1,746.2
18,436.9

1,330.4
2.0
13,054.3
5,855.3
893.1
2,054.4
23,189.5

8,081.5
2.0
12,674.1
6,070.0
886.2
2,304.2
30,018.0

14,853.0
2.0
14,575.2
6,980.5
1,019.2
2,649.8
40,079.7

22,334.4
2.0
16,761.5
8,027.6
1,172.0
3,047.3
51,344.7

9,859.3

10,146.8

13,796.5

16,403.7

16,960.8

19,825.3

22,799.1

1,664.0
11,523.3
3,412.9
13,540.3

1,774.5
11,921.3
6,065.8
16,406.7

3,150.4
16,946.9
1,490.0
20,898.9

3,365.3
19,769.0
3,420.5
26,171.9

3,908.2
20,869.0
9,148.9
32,343.4

4,503.5
24,328.8
15,750.9
39,455.0

5,188.1
27,987.2
23,357.6
47,647.7

where is the ERROR! - NO ERROR as such

9859.3
2183.2
5719.6
4539.4
1180.2
31.7
1924.8

10146.8
1795.4
5541.5
4416.4
1125.1
29.1
2780.8

13796.5
2987.7
7183.2
5993.8
1189.4
34.5
3591.1

16403.7
3152.7
8913.8
7686.1
1227.7
41.4
4295.8

13,160.0

16,960.8
3,598.0
8,376.9
6,989.1
1,387.8
51.4
4,934.5

19,825.3
4,137.7
9,953.8
8,357.8
1,596.0
59.1
5,674.6

22,799.1
4,758.4
11,446.8
9,611.5
1,835.4
68.0
6,525.8

13,160.0
1,772.4

13,603.1
2,038.3

14,112.7
2,344.0

(1,329.3)
13,603.1

(1,528.7)
14,112.7

(1,758.0)
14,698.7

7.0%
1.3%

5.7%
1.4%

5.9%
1.3%

2.0%
1.5%

2.00%
1.50%

2.00%
1.50%

2.00%
1.50%

2,906.9
211.6
7.3%

2,919.2
263.2
9.0%

2,689.3
284.7
10.6%

2,319.7
222.3
9.6%

2,347.0
223.0
9.5%

2,347.0
223.0
9.5%

2,347.0
223.0
9.5%

1.3
0.7
0.1

1.5
0.9
0.2

1.1
0.5
0.1

1.2
0.5
0.1

10.0
3.9
6.5

10.6
4.5
7.6

12.0
4.4
7.6

13.7
4.0
7.1
if in 365 days -> material cost is 51400
what will be the figure for 90 days?

36.5
92.9
55.8
73.6

34.5
80.3
47.7
67.1

30.4
83.8
48.2
66.0

26.7
92.2
51.8
67.2

25.0
90.0
50.0
65.0

25.0
90.0
50.0
65.0

25.0
90.0
50.0
65.0

1.3%
3.5%

0.9%
3.6%

1.0%
2.6%

1.2%
2.7%

1.0%
2.6%

1.0%
2.6%

1.0%
2.6%

8.5%
4.6%
0.1%
7.5%

5.3%
3.3%
0.1%
8.3%

8.0%
3.2%
0.1%
9.6%

7.0%
2.7%
0.1%
9.6%

7.0%
2.7%
0.1%
9.6%

7.0%
2.7%
0.1%
9.6%

7.0%
2.7%
0.1%
9.6%

3.5
7.4
5.0

3.6
6.8
5.0

3.6
6.1
4.6

3.3
5.9
4.0

41.5%
13.6%
9.3%

38.3%
10.9%
7.3%

43.8%
17.1%
12.5%

41.9%
15.6%
10.9%

52.3%
46.5%

44.8%
36.4%

65.8%
57.4%

55.8%
43.3%

9.3%
3.5
1.43
46.5%

7.3%
3.6
1.37
36.4%

12.5%
3.6
1.28
57.4%

10.9%
3.3
1.21
43.3%

0.3
0.2
31.2

0.3
0.2
25.5

0.1
0.1
43.1

0.1
0.1
59.1

2015

959.2
49,554.7
50,513.9
499.7
1,847.3
2,347.0
851.8
3,370.8
57,083.5
371.9

15,372.6
9,219.5
24,964.0
30,952.3
2.0
19,275.8
9,231.7
1,347.8
3,504.3
64,313.9
26,218.9
5,975.4
32,194.3
32,119.5
57,083.5
-

26,218.9
5,472.2
13,163.9
11,053.2
2,110.7
78.2
7,504.7

14,698.7
2,695.7
(2,021.7)
15,372.6
2.00%
1.50%

2,347.0
223.0
9.5%

25.0
90.0
50.0
65.0

1.0%
2.6%

7.0%
2.7%
0.1%
9.6%

ASIAN PAINTS

Corporate Bridge

Source:
CASH FLOW STATEMENT (in INR mn)
Cash Flow from Operating Activities:
Profit before tax and prior period items
Adjustment for:
Depreciation/Impairment
Impairment of Goodwill
Prior period item (Net)
Profit on sale of investments
Profit on disposal of subsidiaries
Gain on disposal of assets
Interest Expense
Interest Income
Dividend Income
Effect of exchange rates on op cashflows
Operating Profit before Working Capital changes
Adjustment for:
Changes in working capital
Asset Trade Receivables (sundry debtors)
Asset Other Receivables (loans & advances)
Asset Inventories
LiabilitiyTrade and other payables (current liablilities)
Assets Changes in other current assets
Cash generated from Operations
Income tax paid (net of refund)
Others
Net cash generated from operating activities
Cash Flow from Investing Activities:
Purchase of Fixed Assets / Capex
Proceeds from sale of Fixed Assets
Purchase of Investment
Sale of Investment
investments
Interest received
Dividend received
Cash outflow on additional stake in subsidiary
Cash inflow arising on disposal of subsidiary
Net cash used in investing activities
debt
debt
debt
debt

Cash Flow from Financing Activities

Proceeds from long term borrowings
Proceeds from short term borrowings
Repayment of long term borrowings
Repayment of short term borrowings
Interest Paid

2006

2007

2008

2009

3,431.4

4,271.0

6,330.1

6,191.4

606.2
76.0
(10.3)
(3.6)
10.1
(2.2)
114.3
(17.5)
(58.1)
4,146.3
-

611.4
26.5
70.8
9.7
(14.7)
189.1
(14.3)
(115.3)
5,034.2

591.7
(15.9)
(16.0)
68.4
(37.8)
211.6
(44.7)
(245.4)
(177.7)
6,664.3

743.8
12.4
(22.7)
(1.3)
(65.4)
263.2
(56.9)
(140.8)
320.6
7,244.3

(886.4)
(636.7)
(343.2)
93.6
3,259.9

(869.9)
(1,111.8)
(1,044.8)
1,286.7
4,164.3

39.9
(888.5)
(1,194.3)
2,122.7
6,704.2

(1,431.1)
(922.2)
(549.4)
40.5
5,813.2

(1,473.1)

(1,585.0)

(1,906.0)

(1,919.2)

1,786.8

2,579.3

4,798.2

3,894.0

(867.2)
39.9
(797.2)
298.5
17.6
58.1
(1,250.3)

(819.5)
133.7
(395.6)
54.0
14.0
115.3
(269.4)
72.8
(1,094.7)

(3,080.5)
262.4
(1,981.5)
1,158.3
44.7
245.4
(3.6)
6.9
(3,347.9)

(3,100.5)
217.5
2.1
52.3
140.8
(12.7)
(2,700.5)

494.7
56.7
(333.7)
(114.3)

736.8
(280.5)
(189.1)

224.3
(380.8)
(211.6)

(25.6)
(15.6)
(263.2)

Dividend and Dividend tax paid and Provisions

Net cash used in financing activities
Net Inc/(Dec) in Cash and Cash Equivalents
Cash and Cash Equivalents - bop
Net effect of changes in exchange rate
Cash and Cash Equivalents - eop

(519.2)
(415.7)

(1,374.9)
(1,107.7)

(968.2)
(1,336.3)

(1,999.3)
(2,303.7)

120.8
608.2
5.1
734.1

376.9
734.1
(57.1)
1,053.9

114.0
1,053.9
(60.8)
1,107.1

(1,110.2)
3,088.8
125.1
2,103.7

Net change in Cash = CFO

10.0

2010

2011

12,572.4
835.6
(2.2)
(627.2)
(11.5)
(78.8)
284.7
(110.6)
(226.2)
(172.9)
12,463.3

12,602.4
1,131.3
(4.5)
(27.1)
222.3
(104.8)
(354.7)
(161.0)
13,303.9

1,337.7
(508.8)
(1,913.5)
3,760.0
13,801.0

(1,767.0)
(819.4)
(3,495.5)
2,547.9

2012

2013

2014

2015

14,399.6

16,593.0

19,115.4

22,016.2

1,329.3

1,528.7

1,758.0

2,021.7

223.0

223.0

223.0

223.0

15,951.9

18,344.7

21,096.4

24,260.9

11,536.9

479.7
(214.68)
(249.8)
380.17
557.12
6.88
16,431.6

(425.7)
(910.50)
(345.6)
(1,901.12)
2,864.44
(132.93)
17,919.0

(809.9)
(1,047.07)
(397.5)
(2,186.29)
2,973.79
(152.87)
20,286.5

(931.4)
(1,204.13)
(457.1)
(2,514.23)
3,419.86
(175.80)
23,329.5

(3,169.4)

(3,924.2)

(4,319.89)

(4,977.90)

(5,734.62)

(6,604.85) cash

10,631.6

7,612.7

12,111.8

12,941.1

14,551.9

16,724.6

(3,953.1)
120.6
(543.6)
986.6
114.0
226.2
59.1
(2,990.2)

(1,561.0)
57.9
(3,109.9)
4.5
104.9
354.7

(1,772.44)

(2,038.30)

(2,344.05)

(2,695.65)

(4,148.9)

(1,772.4)

(2,038.3)

(2,344.0)

(2,695.7)

(145.5)
(529.7)
(284.7)

119.3
(63.8)
(222.3)

(223.0)

(223.0)

(223.0)

(223.0)

BS

(2,358.9)
(3,318.8)

(3,168.3)
(3,335.1)

(3,365.3)
(3,588.3)

(3,908.2)
(4,131.2)

(4,503.5)
(4,726.5)

(5,188.1)
(5,411.1)

4,322.6
2,103.7
(51.6)
6,374.7

128.7
6,374.7
11.9
6,515.3

6,751.1
1,330.4

6,771.6
8,081.5

7,481.3
14,853.0

8,617.9
22,334.4

8,081.5

14,853.0

22,334.4

30,952.3

1,330.40 ending Cash Flows -> linked finally to the BS cash

both should match
5,184.90

Net change in Cash = CFO + CFF + CFI

CB Research & Analytics

Asian Paints Model

Valuation Sheet
DCF Summary
Net Income
+ Depreciation
+ Interest*(1-T)
- Capex
+/- Changes in working capital
Free Cash Flow to Firm
Date
FCFF (explicit forecast)
Terminal value
Present value of "explicit forecast period" - till 2015E
PV of Terminal Value

Valuation Assumptions
Terminal growth rate
Cost of debt
Beta
Risk free rate (rf )
Market Premium

5.0%
10.0%
1.1
8.0%
5.0%

Cost of Equity

WACC Calculation
Total Debt
Shareholders' equity
Capitalization:
Debt: Equity
Debt: Total Capital
Equity: Total Capital
Cost of Equity
WACC

CB Research & Analytics

EV Computation

Asian Paints Model

Present value of "explicit forecast period" - till 2015E

PV of Terminal Value
Total Valuation
Less: Debt
Less: Minority Interest
Add: Cash and bank deposits
Other adjustments:
Add: Investments
Add: Other non-operating assets
Intrinsic Value (in mn)
No of Shares (in mn)
Share Price (INR)

SENSITIVITY ANALYSIS
12.1%
12.6%
13.1%
13.6%
14.1%

4.0%

Historical
FY2009
09

Forecast
FY2010
10

FY2011
11E

FY2012
12E

FY2013
13E

FY2014
14E

FY2015
15E

2012

2011

2012

2013

2014

2015

5.0%

5.5%

6.00%

2016
21,889
7,141
29,029

2017
24,402
24,402

2018
27,217
27,217

2019
30,370
30,370

2020
33,901
33,901

FYE
Date

31-Mar-11
27-Mar-12

Days

-362

Relative Valuation
Asian Paints
Corporate Bridge Academy (www.corporatebridge.net / www.cbacademy.in / cbjobs.in)
(In Crores)
Peer Companies
Asian Paints
Nerolac
Berger Paints
Akzo Nobel
Debt
Cash
Market Price
Shares Outstanding
Equity Value
Enterprise Value
Capital Invested
(In Crores)
Sales
Excise
Net Sales
COGS
Total Expenses
Operating Expenses
EBITDA
GP Margins
EBITDA Margins
Net Profit
Net Profit Margins

Total Assets

Multiple Analysis
P/E
EV/Sales
EV/EBITDA
P/Sales

anies
Shalimar Paints

Asian Paints
FIXED ASSETS SCHEDULE
(Rs. in Crores)

Source: AR 2010 ,pg no 45

Gross Block

SCHEDULE D : FIXED ASSETS

Tangible Assets :
Freehold Land
Leasehold Land
Buildings
Plant and Machinery
Assets given on Operating Lease :
Tinting systems
Scientific Research:
Equipment
Buildings
Furniture and Off. Equipment
Vehicles
Leasehold improvements
Intangible Assets :
Trademark
Software
Total
Previous year

Depreciation/Amortisation
Assets
acquired
on
merger*

Impairment

As at
01.04.09

Assets
acquired
on merger

Additions
during
the year

Deductions
and / or
adjustments

As at
31.03.10

90.38
28.33
206.26
575.71

12.35
-

0.50
66.75
11.02
40.01

0.16
14.49

90.88
95.08
229.47
601.23

1.25
46.93
302.68

1.53
-

0.58
6.37
39.54

0.04
13.20

72.83

0.21

53.38

19.66

52.60

2.21

35.22
37.02
28.43
2.62
3.45

1.89
0.36
5.60
0.05
-

0.98
1.13
1.16
-

36.13
37.38
32.90
1.51
3.45

11.31
0.90
16.99
1.76
0.84

3.66
1.24
2.75
0.26
1.12

12.35

10.02
136.41

71.30

11.92
34.78
1,194.39

11.92
19.64
466.82

1.53

252.75

73.71

1,116.93

469.41

11.92
24.76
1,116.93
937.89

As at
01.04.09

Additions Deductions
during
and / or
the year adjustments

Net Block

As at
01.04.09

Additions

Deductions
and / or
adjustments

As at
31.03.10

1.83
54.79
329.02

7.92

0.15

0.99

7.08

40.11

14.70

17.49

13.01

4.48

0.48

2.74

0.04
1.02
0.87
-

14.93
2.14
18.72
1.15
1.96

0.48
1.31
-

0.01
-

0.08
-

0.48
1.24
-

20.72
35.24
12.94
0.36
1.49

23.43
36.12
10.13
0.86
2.61

2.85
60.58

55.28

11.92
22.49
473.65

27.20

0.16

14.08

13.28

12.29
707.46

5.12
622.91

57.05

59.64

466.82

39.65

0.10

12.55

27.20

622.91

As at
31.03.10

As at
31.03.10

90.88
93.25
174.68
265.13

As at
31.03.09

90.38
27.08
159.33
265.11

ASIAN PAINTS
Production Details:
Items

Unit

Location

a) Paints, enamels
and varnishes

MT/KL

b) Synthetic Resins
and Polymers
(Mainly for captive
consumption)
c) Phthalic Anhydride
d) Maleic Acid
e) Pentaerythritol
f) Sodium Formate
g) Formaldehyde
(100%)(8)

MT

In-house
Contract
Manufacture/
Purchase
In-house

MT
MT
MT
MT
MT

Installed Capacity

Production

Utilization

2010
444,150

2009
404,150

2010
411,369

2009
354,370

2010
93%

2009
88%

138,880

119,380

182,059
98,676

141,616
71,979

71%

60%

Ankleshwar
Ankleshwar
Cuddalore
Cuddalore

29,796
4,860
5,400
3,300

25,200
5,400
5,400
3,240

23,721
4,267
4,700
2,406

19,941
3,073
4,500
2,080

80%
88%
87%
73%

79%
57%
83%
64%

Cuddalore
Purchase

8,100
-

8,100
-

4,944
1,023

5,363
-

61%

66%