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ASIAN PAINTS 2018-19 Annual Report Analysis

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ASIAN PAINTS 2018-19 Annual Report Analysis
Thu, 30 May

ASIAN PAINTS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

ASIAN PAINTS Income Statement Analysis

  • Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.2% in FY19 as against 19.0% in FY18.
  • Depreciation charges increased by 19.5% and finance costs increased by 45.4% YoY, respectively.
  • Other income grew by 2.9% YoY.
  • Net profit for the year grew by 9.1% YoY.
  • Net profit margins during the year declined from 11.9% in FY18 to 11.3% in FY19.

ASIAN PAINTS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 168,246 193,415 15.0%
Other income Rs m 2,206 2,271 2.9%
Total Revenues Rs m 170,452 195,686 14.8%
Gross profit Rs m 31,976 35,245 10.2%
Depreciation Rs m 3,605 4,307 19.5%
Interest Rs m 351 510 45.4%
Profit before tax Rs m 30,227 32,699 8.2%
Tax Rs m 10,410 10,988 5.6%
Profit after tax Rs m 20,275 22,119 9.1%
Gross profit margin % 19.0 18.2
Effective tax rate % 34.4 33.6
Net profit margin % 11.9 11.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ASIAN PAINTS Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 50 billion as compared to Rs 45 billion in FY18, thereby witnessing an increase of 13.0%.
  • Long-term debt down at Rs 195 million as compared to Rs 283 million during FY18, a fall of 31.2%.
  • Current assets rose 10% and stood at Rs 76 billion, while fixed assets rose 18% and stood at Rs 61 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 157 billion as against Rs 138 billion during FY18, thereby witnessing a growth of 14%.

ASIAN PAINTS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 84,102 95,197 13.2
 
Current Liabilities Rs m 44,511 50,289 13.0
Long-term Debt Rs m 283 195 -31.2
Total Liabilities Rs m 137,833 156,613 13.6
 
Current assets Rs m 69,141 76,341 10.4
Fixed Assets Rs m 51,374 60,609 18.0
Total Assets Rs m 137,833 156,613 13.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



ASIAN PAINTS Cash Flow Statement Analysis

  • ASIAN PAINTS's cash flow from operating activities (CFO) during FY19 stood at Rs 22 billion, an improvement of 4.8% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -9 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -9 billion, an improvement of 36% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 4 billion from the Rs -8 billion net cash flows seen during FY18.

ASIAN PAINTS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 21,134 22,143 4.8%
Cash Flow from Investing Activities Rs m -15,993 -9,237 -
Cash Flow from Financing Activities Rs m -13,791 -8,830 -
Net Cash Flow Rs m -8,218 4,343 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for ASIAN PAINTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.1, an improvement from the EPS of Rs 21.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,372.3, stands at 60.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 13.2 times, while the price to sales ratio stands at 6.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 50.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 175.4 201.6
TTM Earnings per share Rs 21.1 23.1
Diluted earnings per share Rs 21.1 23.1
Price to Cash Flow x 56.2 50.6
TTM P/E ratio x 60.6 60.6
Price / Book Value ratio x 13.1 13.2
Market Cap Rs m 1,316,310 1,316,310
Dividends per share (Unadj.) Rs 8.7 10.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for ASIAN PAINTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY19, from 1.6x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 65.1x during FY19, from 87.2x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 23.2% during FY19, from 24.1% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 35.2% during FY19, from 36.8% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 14.4% during FY19, from 15.0% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.6 1.5
Debtors’ Days Days 38 36
Interest coverage x 87.2 65.1
Debt to equity ratio x 0.0 0.0
Return on assets % 15.0 14.4
Return on equity % 24.1 23.2
Return on capital employed % 36.8 35.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how ASIAN PAINTS has performed over the last 5 years, please visit here.

ASIAN PAINTS Share Price Performance

Over the last one year, ASIAN PAINTS share price has moved up from Rs 1,291.9 to Rs 1,372.3, registering a gain of Rs 80.4 or around 6.2%.

Overall, the S&P BSE SENSEX is up 14.1% over the year.

(To know more, check out historical annual results for ASIAN PAINTS and quarterly results for ASIAN PAINTS)

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ASIAN PAINTS Announces Quarterly Results (4QFY19); Net Profit Down 1.9% (Quarterly Result Update)

May 10, 2019 | Updated on May 10, 2019

For the quarter ended March 2019, ASIAN PAINTS has posted a net profit of Rs 5 bn (down 1.9% YoY). Sales on the other hand came in at Rs 50 bn (up 11.7% YoY). Read on for a complete analysis of ASIAN PAINTS's quarterly results.

ASIAN PAINTS Announces Quarterly Results (3QFY19); Net Profit Up 14.7% (Quarterly Result Update)

Jan 24, 2019 | Updated on Jan 24, 2019

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Aug 8, 2018 | Updated on Aug 8, 2018

Here's an analysis of the annual report of ASIAN PAINTS for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of ASIAN PAINTS. Also includes updates on the valuation of ASIAN PAINTS.

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