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Asian Paints: A subdued quarter - Views on News from Equitymaster
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Asian Paints: A subdued quarter
Nov 6, 2015

Asian Paints has announced the second quarter results of financial year 2015-2016 (2QFY16). The net profit climbed 14.9% YoY while topline grew by 4% on YoY basis.

Performance summary

  • Net sales from operations grew at 4% YoY during 2QFY16 and other operating income grew at 5.6% leading to increase in total income to 4% YoY during 2QFY16.
  • Operating profits (EBITDA) in 2QFY16 increased by 15.3% in 2QFY15 on the back of fall in input costs. Operating Margin has increased by 1.6% to 16.4%.
  • Other income surged during this quarter by 26.5%.
  • Net profit increased by 14.9% despite of increase in minority interest which has increased by 74.2% YoY during 2QFY16.

Consolidated financial snapshot

(Rs mn) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Total Income from operations 36,330 37,794 4.0% 69,952 74,028 5.8%
Total Expenses 30,948 31,591 2.1% 59,053 60,990 3.3%
Operating Profit (EBITDA) 5,382 6,203 15.3% 10,899 13,038 19.6%
Operating Profit Margin(%) 14.8% 16.4%   15.6% 17.6%  
Depreciation 669 709 6.0% 1,314 1,402 6.7%
Finance Cost 70 92 31.5% 148 181 22.6%
Other Income 455 575 26.5% 976 1,310 34.2%
Profit before tax 5,097 5,977 17.3% 10,412 12,764 22.6%
Exceptional Items - -   252 -  
Tax 1,541 1,836 19.2% 3,130 3,950 26.2%
Minority Interest 90 156 74.2% 176 278 57.9%
Profit after tax 3,467 3,985 14.9% 6,854 8,536 24.5%
Net profit margin 9.5% 10.5%   9.8% 11.5%  
No. of shares (m)         959.2  
Basic diluted earnings per share (Rs) ^         8.9  
P/E ratio (x) *         49.8  

*Based on trailing 12 month earnings

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