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: A Quarter of Recovery - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

StockSelect
  • MyStocks

MEMBER'S LOGINX

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

Asian Paints: A Quarter of Recovery

Nov 9, 2017

Asian Paints has announced the second quarter results of financial year 2017-2018 (2QFY18). The company has reported a 13.7% YoY rise in the topline and a 21% YoY rise in the bottomline during the quarter.

Performance summary:
  • Total income from operations grew by 13.7% YoY during 2QFY18. The decorative business segment in India registered a high single-digit volume growth during the quarter. The segment witnessed a recovery from Q1 which was affected by the impact of destocking in the trade channel (B2B dealers) due to Goods and Services Tax (GST). However, the impact of GST continued through July and a recovery of sorts was seen only in September.
  • The Automotive coatings JV (PPG-AP), witnessed subdued demand in the Auto OEM and General Industrial business segment. Auto Refinish segment also continued to witness challenging conditions in the market. The performance of Industrial Coatings JV (AP-PPG) came in satisfactory.
  • On the international front, units in Nepal, Bangladesh, and Oman witnessed good topline growth. However, the overall performance of international operations was affected by currency devaluation in Egypt and unavailability of forex in Ethiopia.
  • The kitchen business (Sleek) and bath business (ESS ESS) in the home improvement category witnessed growth during the quarter after the slowdown seen during the first quarter.
  • Operating profit (EBITDA) in 2QFY18 increased by 13.6% YoY on the back of increased sales. Operating margins stood at 18.7% in 2QFY18 as against 18.8% reported in 2QFY17.
  • Net profit increased 21% YoY. The rise here was mainly attributed to profits realized through discontinued operations during the quarter. Net profit margins stood at 13.5% in 2QFY18 as compared to 12.7% in 2QFY17.

    Consolidated financial snapshot
    (Rs m) 2QFY17 2QFY18 Change 1HFY17 1HFY18 Change
    Total Income from operations 37,577 42,742 13.7% 73,849 80,840 9.5%
    Total Expenses 30,522 34,731 13.8% 58,634 66,175 12.9%
    Operating Profit (EBITDA) 7,054 8,011 13.6% 15,216 14,665 -3.6%
    Operating Profit Margin(%) 18.8% 18.7%   20.6% 18.1%  
    Depreciation 833 889 6.8% 1,677 1,794 7.0%
    Finance Cost 59 88 48.9% 121 167 37.8%
    Other Income 793 534 -32.6% 1,511 1,317 -12.8%
    Profit before tax 6,955 7,568 8.8% 14,928 14,021 -6.1%
    Exceptional Items 0 0   0 0  
    Tax 2,200 2,459 11.8% 4,793 4,619 -3.6%
    Minority Interest 188 178 -5.6% 363 311 -14.4%
    Share of Associates 138 152   263 242 -7.9%
    Profit after tax from continuing operations 4,704 5,084 8.1% 10,036 9,333 -7.0%
    Profit from discontinued operations 55 675 1126.7% 74 700 843.4%
    Total profit for the period 4,759 5,759 21.0% 10,110 10,033 -0.8%
    PAT Margin 12.7% 13.5%   13.7% 12.4%
    No. of shares (m)         959.2  
    Basic diluted earnings per share (Rs) ^         20.1  
    P/E ratio (x) *         59.3  
    *Based on trailing 12 month earnings
To Read the Full Story, Subscribe or Sign In
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.

Small Investments
BIG Returns

Zero To Millions Guide 2019
Get our special report, Zero To Millions
(2019 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

ASIAN PAINTS SHARE PRICE


Dec 10, 2018 03:35 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 - AKZO NOBEL COMPARISON

COMPARE ASIAN PAINTS WITH

MARKET STATS