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ASIAN PAINTS 2019-20 Annual Report Analysis
Tue, 31 Mar

ASIAN PAINTS has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

ASIAN PAINTS Income Statement Analysis

  • Operating income during the year rose 4.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.5% in FY20 as against 19.4% in FY19.
  • Depreciation charges increased by 25.5% and finance costs decreased by 7.4% YoY, respectively.
  • Other income grew by 30.6% YoY.
  • Net profit for the year grew by 25.7% YoY.
  • Net profit margins during the year grew from 11.2% in FY19 to 13.4% in FY20.

ASIAN PAINTS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 193,498 202,635 4.7%
Other income Rs m 2,330 3,043 30.6%
Total Revenues Rs m 195,829 205,678 5.0%
Gross profit Rs m 37,635 41,583 10.5%
Depreciation Rs m 6,221 7,805 25.5%
Interest Rs m 1,105 1,023 -7.4%
Profit before tax Rs m 32,639 35,798 9.7%
Tax Rs m 10,966 8,563 -21.9%
Profit after tax Rs m 21,673 27,235 25.7%
Gross profit margin % 19.4 20.5
Effective tax rate % 33.6 23.9
Net profit margin % 11.2 13.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ASIAN PAINTS Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 44 billion as compared to Rs 52 billion in FY19, thereby witnessing an decrease of -15.4%.
  • Long-term debt down at Rs 186 million as compared to Rs 191 million during FY19, a fall of 2.3%.
  • Current assets fell 1% and stood at Rs 76 billion, while fixed assets fell 1% and stood at Rs 86 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 161 billion as against Rs 162 billion during FY19, thereby witnessing a fall of 1%.

ASIAN PAINTS Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 94,706 101,302 7.0
 
Current Liabilities Rs m 51,801 43,804 -15.4
Long-term Debt Rs m 191 186 -2.3
Total Liabilities Rs m 162,488 161,380 -0.7
 
Current assets Rs m 76,270 75,801 -0.6
Fixed Assets Rs m 86,219 85,579 -0.7
Total Assets Rs m 162,488 161,380 -0.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ASIAN PAINTS Cash Flow Statement Analysis

  • ASIAN PAINTS's cash flow from operating activities (CFO) during FY20 stood at Rs 30 billion, an improvement of 23.0% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -5 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs -29 billion on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs -4 billion from the Rs 4 billion net cash flows seen during FY19.

ASIAN PAINTS Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 24,695 30,382 23.0%
Cash Flow from Investing Activities Rs m -9,445 -5,214 -
Cash Flow from Financing Activities Rs m -11,175 -28,715 -
Net Cash Flow Rs m 4,343 -3,512 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ASIAN PAINTS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.4, an improvement from the EPS of Rs 22.6 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,666.7, stands at 58.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 15.8 times, while the price to sales ratio stands at 7.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 43.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 201.7 211.3
TTM Earnings per share Rs 22.6 28.4
Diluted earnings per share Rs 22.6 28.4
Price to Cash Flow x 51.3 43.9
TTM P/E ratio x 72.2 58.6
Price / Book Value ratio x 13.3 15.2
Market Cap Rs m 1,256,837 1,538,266
Dividends per share (Unadj.) Rs 10.5 12.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ASIAN PAINTS

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY20, from 1.5x during FY19. 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 improved and stood at 36.0x during FY20, from 30.5x during FY19. 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 improved and stood at 26.9% during FY20, from 22.9% during FY20. 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 improved and stood at 36.3% during FY20, from 35.6% during FY19. 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 improved and stood at 17.5% during FY20, from 14.0% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 1.5 1.7
Debtors’ Days Days 4 3
Interest coverage x 30.5 36.0
Debt to equity ratio x 0.0 0.0
Return on assets % 14.0 17.5
Return on equity % 22.9 26.9
Return on capital employed % 35.6 36.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, 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 1,491.9 to Rs 1,666.7, registering a gain of Rs 174.8 or around 11.7%.

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Annual Report FAQs

What is the current share price of ASIAN PAINTS?

ASIAN PAINTS currently trades at Rs 2,846.0 per share. You can check out the latest share price performance of ASIAN PAINTS here...

What was the revenue of ASIAN PAINTS in FY20? How does it compare to earlier years?

The revenues of ASIAN PAINTS stood at Rs 205,678 m in FY20, which was up 5.0% compared to Rs 195,829 m reported in FY19.

ASIAN PAINTS' revenue has grown from Rs 129,147 m in FY16 to Rs 205,678 m in FY20.

Over the past 5 years, the revenue of ASIAN PAINTS has grown at a CAGR of 12.3%.

What was the net profit of ASIAN PAINTS in FY20? How does it compare to earlier years?

The net profit of ASIAN PAINTS stood at Rs 27,235 m in FY20, which was up 25.7% compared to Rs 21,673 m reported in FY19.

This compares to a net profit of Rs 20,517 m in FY18 and a net profit of Rs 19,666 m in FY17.

Over the past 5 years, ASIAN PAINTS net profit has grown at a CAGR of 11.4%.

What does the cash flow statement of ASIAN PAINTS reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ASIAN PAINTS reveals:

  • Cash flow from operations increased in FY20 and stood at Rs 30,382 m as compared to Rs 24,695 m in FY19.
  • Cash flow from investments increased in FY20 and stood at Rs -5,214 m as compared to Rs -9,445 m in FY19.
  • Cash flow from financial activity decreased in FY20 and stood at Rs -28,715 m as compared to Rs -11,175 m in FY19.

Here's the cash flow statement of ASIAN PAINTS for the past 5 years.

(Rs m)FY16FY17FY18FY19FY20
From Operations22,43015,27321,13424,69530,382
From Investments-8,663-6,561-15,993-9,445-5,214
From Financial Activity-8,490-7,564-13,791-11,175-28,715
Net Cashflow5,278898-8,2184,343-3,512

What does the Key Ratio analysis of ASIAN PAINTS reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ASIAN PAINTS reveals:

  • Operating profit margins witnessed a fall and down at 20.5% in FY20 as against 19.4% in FY19.
  • Net profit margins grew from 11.2% in FY19 to 13.4% in FY20.
  • Debt to Equity ratio for FY20 stood at 0.0 as compared to 0.0 in FY19.

Here's the ratio/financial analysis of ASIAN PAINTS for the past 5 years.

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)21.522.119.519.420.5
Net Profit Margin (%)13.914.312.511.213.4
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of ASIAN PAINTS

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