ASIAN PAINTS
Corporate Bridge
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
2001
2002
2003
1,470 1,233 13 661 53.61 370 29.99 212 22 34 156 12.64 9
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
64.2 346 61 111 390 63 130 0.27:1
64.2 412 58 104 366 148 124 0.22:1
1,580
2,106
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
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
2006 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
95.9 476 31 88 320 258 113 0.15: 1
95.9 526 29 91 325 275 143 0.15:1
95.9 648 22 126 347 334 211 0.17: 1
95.9 833 32 95 539 423 93 0.09: 1
95.9 999 48 75 712 235 270 0.07: 1
2,914
3,751
6,178
7,336
11,510
7,539
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
95.9 1,461 48 69 1,088 704 (118) 0.04: 1
132.00
ASIAN PAINTS INCOME STATEMENT (in INR mn)
Corporate Bridge 2006
2007
2008
INCOME Sales and operating income (Net of discs) Less: Excise duty TOTAL SALES
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% 3 8 . 5% 5 7 . 3% 1 4% 1.1%
16.32% 1.0% 34.1% 44.4% 14% 0 . 7%
60.00% 1 . 4% 32.2% 3 9 . 8% 1 7% 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
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
11.5 12,570.2
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
3 8 .3 1 % 1 2 .2 6 % 1 0 .9 0 % 1 1 .3 5 % 7.28% 34,255.8
11,438.4 12,558.7 8,356.4
4 3 .7 5 % 1 8 .3 7 % 1 7 .1 2 % 1 8 .8 0 % 1 2 .5 1 % 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
2 3 .9 8 % 6 1 .6 9 %
2 2 .2 7 % 5 6 .2 5 %
15.35% 58.06%
15.00% 5 8.0 0 %
15.00% 58.00%
15.00% 58.00%
15.00% 58.00%
6.80% 1 9 .2 5 %
6 .5 3 % 1 8 .8 5 %
5.89% 19.01%
6 .0 0 % 1 9.0 0 %
6.00% 19.00%
6.00% 19.00%
6.00% 19.00%
-14.41% 0 . 9% 3 2 . 0% 4 2 . 2% 17 % 5 . 2%
1 7 5 .4 4 % 2.1% 29.7% 31.0% 17 % 5.5%
-41.19% 1.1% 30.1% 36.4% 1 6% 4 .3 %
1 .0 0 % 3 0 .0 0 % 3 5.0 0 % 1 6.0 0 % 4 .5 0 %
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 Brid
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
Curr Curren entt Asse Assett
Total
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
Investments Total Long Term Assets
1,640.6 6,607.8
1,927.2 7,327.4
Current Assets, Loans and Advances Cash and Bank Balances Interest accrued on investments Inventories
734.1 4,888.7
1,053.9 0.3 5,980.1
Sund Sundry ry debt debtors ors (rec (receiv eivab able les) s)
3,475.2
4,206.1
Other Current Assets
611.2
693.6
Loan Loanss and and Adva Advanc nces es
745.2
979.3
Total Current Assets Current Liabilities and Provisions Current Liabilities
10,454.4
12,913.3
5,787.4
7,870.4
Provisions Total Current Liabilities Net Current Assets Total
1,258.5 7,045.9 3,408.5 10,016.3
662.0 8,532.4 4,380.9 11,708.3
APPLICATION OF FUNDS Goodwill on consolidation Fixed Assets Gross Block Less: Depreciation/Amortisation Net Block Add : Capital Work in Progress Net Fixed Assets
Curre Current nt Asset Asset
2006
check (moment of truth!) ( A = L + E)
Schedule G
-
-
1 2
3 4
Current Liabilities Acce Accept ptan ance cess Sundry Creditors Trade (payables) Others Investor Investor Educat Education ion etc Other Other Liabil Liabiliti ities es
5787.37 1 , 22 7.48 3296.3 2 , 26 6.92 1 , 0 2 9.3 8 2 4.1 5 1 , 23 9.44
7870.4 1729.3 4485.3 3692.8 792.5 6 2.9 1592.9
2.9% 2.0%
2.2% 1.7%
Assumptions: Fixed Assets B A A S E
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 1 8 9 .1 6.7%
Cash and Bank Balances Interest earned Interest rate %
Ratio Analysis Solvency Ratios Current ratio Quick ratio Cash ratio
1 .5 0 .8 0 .1
1.5 0.8 0.1
Turnover Ratios Receivables turnover Inventory turnover Payables turnover
9 .6 4 .0 7 .7
Sales Material costs Purchases
Average receivables collection period Average inventory processing period Average payment period Cash Conversion Cycle
3 8 .2 9 0 .2 4 7 .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
3 .4 7 .8 5 .2
Operating Profitability Gross Profit Margin Operating Profit Margin Net Profit Margin
40.7% 11.0% 6.9%
Return on total capital Return on total equity
40.1% 1 1 .3 % 7.7% 4 4 . 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 3 4 .3
0 .4 0 .3 25.3
e 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
2,103.7 5.5 7,689.5
1,058.3 2.1 9,558.8
1,330.4 2.0 13,054.3
8,081.5 2.0 12,674.1
14,853.0 2.0 14,575.2
22,334.4 2.0 16,761.5
4,603.3
5,719.2
5,425.2
5,855.3
6,070.0
6,980.5
8,027.6
559.6
491.2
646.3
893.1
886.2
1,019.2
1,172.0
1,525.2
1,978.0
1,746.2
2,054.4
2,304.2
2,649.8
3,047.3
14,936.2
17,987.1
18,436.9
23,189.5
30,018.0
40,079.7
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 3 1 .7 1924.8
10146.8 1795.4 5541.5 4416.4 1125.1 2 9.1 2780.8
13796.5 2 98 7.7 7 1 8 3 .2 5 99 3 .8 1 1 8 9.4 3 4.5 3 59 1 .1
16403.7 3152.7 8913.8 7686.1 1227.7 4 1 .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%
2.0 0 % 1 .50 %
2.0 0 % 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%
4 3 . 8% 1 7 . 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
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
Changes in working capital Asse Assett Trad Trade e Receiv Receivab able less (sund (sundry ry debt debtor ors) s) Asset Asset Other Other Receiv Receivabl ables es (loans (loans & adva advance nces) s) Asset Invent entories ries Liabiliti Liabiliti Trade and other payables (current (current liablilities) liablilities) Assets Assets Change Changess in other other curre current nt assets assets Cash generated from Operations
(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
Income tax paid (net of refund) Others Net cash generated from operating activities
(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)
Adjustment for:
Cash Flow from Investing Activities: Purchase of Fixed Assets / Capex Proceeds from sale of Fixed Assets Purchase of Investment Sale of Investment investmInterest received Dividend received Cash outflow on additional stake in subsidiary Cash inflow arising on disposal of subsidiary Net cash used in investing activities Cash Flow from Financing Activities debt debt Proc Procee eeds ds fro from m long long ter term m borr borrow owin ings gs debt debt Proc Proceed eedss from from shor shortt term term borro borrowi wing ngss debt debt Repa Repaym ymen entt of lon long g term term bor borro rowi wing ngss debt debt Repa Repaym ymen entt of sho short rt ter term m borr borrow owin ings gs Interest Paid
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
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
in Cash = CFO + CFF + CFI
CB Research & Analytics
Asian Paints Model
Valuation Sheet
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 201 5E PV of Terminal Value
Valuation Assumptions Terminal growth rate Cost of debt Beta
5.0% 10.0% 1.1
Risk free rate (rf )
8.0%
Market Premium
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 FY 09
Forecast FY 10
2012
FY 11E
2011
FY 12E
2012
FY 13E
2013
FY 14E
2014
FY 15E
2015
5.0%
5.5%
6 .0 0 %
21,889 7,141 29,029
24,402 24,402
27,217 27,217
30,370 30,370
33,901 33,901
Date
27-Mar-12
Days
-3 6 2
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
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
As at 01.04.09
Assets acquired on merger
90.38 28.33 206.26 575.71
12.35 -
0.50 66.75 11.02 40.01
0.16 14.49
72.83
-
0.21
53.38
19.66
52.60
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
11.92 24.76
-
10.02
-
11.92 34.78
11.92 19.64
1,116.93 937.89
Additions during the year
Depreciation/Amortisation
Deductions and / or adjustments
As at 31.03.10
90.88 95.08 229.47 601.23
1.25 46.93 302.68
As at 01.04.09
Assets acquired on merger*
1.53 -
Impairment
Additions Deductions during and / or the year adjustments
0.58 6.37 39.54
0.04 13.20
-
2.21
-
3.66 1.24 2.75 0.26 1.12
-
2.85
As at 31.03.10
As at 01.0 01.04. 4.0 09
1.83 54.79 329.02
7.92
40.11
14.70
17.49
0.04 1.02 0.87 -
14.93 2.14 18.72 1.15 1.96
0.48 1.31 -
-
11.92 22.49
Net Block
Additio itions ns
Deductions and / or adjustments
As at 31.03.10
0.15
0.99
7.08
13.01
4.48
0.48
2.74
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
12.29
5.12
622.91
0.01 -
-
-
-
-
As at 31.03.10
90.88 93.25 174.68 265.13
12.35
136.41
71.30
1,194.39
466.82
1.53
60.58
55.28
473.65
27.20
0.16
14.08
13.28
707.46
-
252.75
73.71
1,116.93
469.41
-
57.05
59.64
466.82
39.65
0.10
12.55
27.20
622.91
As at 31.03.09
90.38 27.08 159.33 265.11
ASIAN PAINTS Production Details: Items
Unit
Location
Installed Capacity 2009
2010
2009
2010
2009
a) Paints, enamels and varnishes
MT/KL
444,150
404,150
411,369
354,370
9 3%
8 8%
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
138,880
119,380
182,059 98,676
141,616 71,979
71%
60%
MT MT MT MT
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% 8 8% 8 7% 7 3%
7 9% 5 7% 8 3% 6 4%
MT
Cuddalore Purchase
8,100 -
8,100 -
4,944 1,023
5,363 -
61%
6 6%
2010
Production
Utilization
