X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Asian Paints: Volumes Weighed by Notebandi - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Asian Paints: Volumes Weighed by Notebandi
Feb 17, 2017

Asian Paints has announced the third quarter results of financial year 2016-2017 (3QFY17). The company has reported a 2.6% YoY rise in the topline and a 0.6% YoY decline in the bottomline during the quarter.

Performance summary:
  • Sales from operations grew by 2.7% YoY during 3QFY17 and the other operating income decreased by 5.7% YoY, leading to an increasing total income to 2.6% YoY during 3QFY17. The decorative business segment in India registered low single digit growth during the quarter. This was seen on the back of government's notebandi move which impacted demand for this segment during the quarter. The automotive coatings JV (PPG-AP) witnessed improved performance on the back of good demand conditions in the auto OEM segment. The industrial coatings JV (AP-PPG) also saw good growth in industrial liquid paints and powder coating segments.
  • The international business of the company also witnessed good performance during the quarter. The growth here was aided by contribution from good pick-up in demand in Nepal, Fiji and certain units in the Middle East. Performance in the key market of Egypt was impacted by the devaluation of the local currency.
  • The kitchen business (Sleek) and bath business (ESS ESS) in the home improvement category felt the impact of delayed sales on account of notebandi.
  • Operating profit (EBITDA) in 3QFY17 decreased by 1.2% YoY on the back of rising input cost and employee cost which has increased by 9.3% YoY. Operating margins stood at 17.8% in 3QFY17 as against 18.5% reported in 3QFY16.
  • Net profit fell marginally by 0.6% YoY on the back rising depreciation costs and tax outgo.
  • The company has declared an interim dividend of Rs 2.65 per share.

    Consolidated financial snapshot
    (Rs m) 3QFY16 3QFY17 Change 9MFY16 9MFY17 Change
    Total Income from operations 42,452 43,540 2.6% 117,879 126,685 7.5%
    Total Expenses 34,597 35,777 3.4% 97,158 103,590 6.6%
    Operating Profit (EBITDA) 7,855 7,763 -1.2% 20,721 23,096 11.5%
    Operating Profit Margin (%) 18.5% 17.8% 17.6% 18.2%
    Depreciation 694 855 23.2% 2,034 2,554 25.5%
    Finance Cost 76 92 20.5% 258 216 -16.3%
    Other Income 420 415 -1.3% 1,658 1,925 16.1%
    Profit before tax 7,504 7,231 -3.6% 20,087 22,251 10.8%
    Exceptional Items 525 525
    Tax 2,274 2,465 8.4% 6,165 7,275 18.0%
    Minority Interest 130 231 78.1% 409 594 45.5%
    Share of Associates 114 127 275 390 42.0%
    Profit after tax 4,690 4,662 -0.6% 13,265 14,772 11.4%
    PAT Margin 11.0% 10.7%
    No. of shares (m) 959.2
    Basic diluted earnings per share (Rs) ^ 19.7
    P/E ratio (x) * 48.9

    *Based on trailing 12 month earnings

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

ASIAN PAINTS SHARE PRICE


Oct 19, 2017 07:33 PM

TRACK ASIAN PAINTS

  • Track your investment in ASIAN PAINTS with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

ASIAN PAINTS 5-YR ANALYSIS

Detailed Financial Information With Charts

COMPARE ASIAN PAINTS WITH

MARKET STATS