1. ASIAN PAINTS LIMITED October 29, 2014
Current Price:
VALUE PARAMETERS
Price (`) 646.25
52 W H/L(`) 680.00/461.00
Mkt. Cap.(`Cr) 61988.3
Latest Equity(Subscribed) 95.92
Latest Reserve (cons.) 3943.3
Latest EPS (cons.) -Unit Curr. 13.83
Latest P/E Ratio -cons 46.72
Latest Bookvalue (cons.) -Unit Curr. 42.11
Latest P/BV - cons 15.35
Dividend Yield -% 0.82
Face Value 1
Consolidated results In Cr.
`646.25
STOCK DATA
BSE Code 500820
NSE Symbol ASIANPAINT
Reuters ASPN.BO
Bloomberg APNT IN
SHARE HOLDING PATTERN (%)
Description as on % of Holding
30/09/2014
Foreign 19.54
Institutions 9.17
Non Promoter Corp. Hold. 5.88
Promoters 52.79
Public & Others 12.62
Consolidated Quarterly Performance
Asian Paints Income from operations increased 16.6% in Q2FY'15 to `3633 crore from `3115
crore in Q2FY'14. Profit before depreciation interest and tax (PBDIT) for the group increased by
5% to `536.2 crore from `510.8 crore. Profit before Tax (PBT) increased 5.5% to `510.3 crore
from `483.9 crore. Net Profit after Minority Interest increased 6.3% to `347.3 crore as
compared to `326.8 crore in the previous corresponding period. Reported net sales were inline
with the estimates while net profit was lower than the estimates.
The company operating margins fell 160 bps to 14.8% as employee benefit expenses as a
percentage of net sales (net of stock adjustment) rose 30 bps to 6% and other expenses
increased by 80 bps to 20.9% along with 90 bps rise in purchase of stock in trade to 3.7%. Cost
of material consumed remained flat at 55.8%. As a result operating profit growth was 5% to
`536.22 crore.
Other income of the company rose 6% to `47.97 crore. Interest cost fell 41% to `7.01 crore.
Depreciation increased 11% to `66.88. PBT as a result rose 5% to `510.3 crore. The effective
tax rate rose to 30.2% compared to 29.9% owing to which the company's PAT rose 5% to
`356.25 crore. Considering Minority interest Net profit was up 6% to `347.3 crore.
The above results for the quarter ended 30th June, 2014 include consolidated financials of Sleek
International in which the company obtained 51% stake on 8th August, 2013. In view of this,
the results for the quarter ended and six months ended 30th September, 2014 are not
comparable with the corresponding previous period.
The company had acquired the entire front end sales business including brands, network and
sales infrastructure of Ess Ess Bathroom Products effective 1st June, 2014 for a consideration of
`36.48 crore.
Effective 30th July 2014, Berger International (BIL) has become a 100% subsidiary of Asian
Paints, Mauritius (APIL) (100% subsidiary of Asian Paints). As on 30th September 2013, the
shareholding of APIL in BIL was 83.7%.
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Particulars Qtr Ending Qtr Ending
Sep 14 Sep 13 Var. (%)
Net Sales 3632.95 3114.67 17
OPM (%) 14.80 16.40
OP 536.22 510.80 5
Other Income 47.97 45.36 6
PBDIT 584.19 556.16 5
Interest 7.01 11.96 -41
PBDT 577.18 544.20 6
Depreciation 66.88 60.26 11
PBT 510.30 483.94 5
Tax 154.05 144.92 6
PAT 356.25 339.02 5
MI 8.95 12.18 -27
Net Profit 347.30 326.84 6
EPS (`) 3.62 3.41
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2. Management Comments
K.B.S. Anand, Managing Director & CEO said: "Double digit volume growth was witnessed
across regions in the decorative paint segment. The Automotive coatings JV (PPG-AP), saw
good growth in the General Industrial and Auto Refinish segment. The Industrial Coatings JV
(AP-PPG), which had seen a decline in the previous years, saw good volume growth in the
current year. The international business was led by good growth in markets like Bangladesh,
Nepal & Oman."
We continue to work on our plans for network expansion and streamlining of operations for the
Sleek Business. The ESS ESS Bathroom products business which was acquired in the last
quarter performed as per our expectations" he added.
E-mail: researchfeedback@smcindiaonline.com
SMC Global Securities Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a further public offering of its equity shares and has filed the Draft Red Herring
Prospectus with the Securities and Exchange Board of India (“SEBI”) and the Stock Exchanges. The Draft Red Herring Prospectus is available on the website of SEBI at www.sebi.gov.in and on the websites of the
Book Running Lead Manager i.e., ICICI Securities Limited at www.icicisecurities.com and the Co- Book Running Lead Manager i.e., Elara Capital (India) Private Limited at www.elaracapital.com . Investors should
note that investment in equity shares involves a high degree of risk and for details relating to the same, please see the section titled “Risk Factors” of the aforementioned offer document.
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Corporate Office:
11/6B, Shanti Chamber,
Pusa Road, New Delhi - 110005
Tel: +91-11-30111000
www.smcindiaonline.com
Mumbai Office:
Dheeraj Sagar, 1st Floor,
Opp. Goregaon sports club, link road
Malad (West), Mumbai - 400064
Tel: 91-22-67341600, Fax: 91-22-28805606
Kolkata Office:
18, Rabindra Sarani,
"Poddar Court", Gate No. 4,
4th Floor, Kolkata - 700001
Tel: 91-33-39847000, Fax: 91-33-39847004
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