ASIAN PAINTS 2019-20 Annual Report Analysis

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ASIAN PAINTS 2019-20 Annual Report Analysis
Wed, 5 Aug

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 4.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 10.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.6% in FY20 as against 19.5% in FY19.
  • Depreciation charges increased by 25.5% and finance costs decreased by 2.8% YoY, respectively.
  • Other income grew by 34.0% YoY.
  • Net profit for the year grew by 25.5% YoY.
  • Net profit margins during the year grew from 11.3% in FY19 to 13.5% in FY20.

ASIAN PAINTS Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 193,415 202,113 4.5%
Other income Rs m 2,271 3,043 34.0%
Total Revenues Rs m 195,686 205,156 4.8%
Gross profit Rs m 37,722 41,618 10.3%
Depreciation Rs m 6,221 7,805 25.5%
Interest Rs m 1,053 1,023 -2.8%
Profit before tax Rs m 32,718 35,833 9.5%
Tax Rs m 10,988 8,549 -22.2%
Profit after tax Rs m 22,138 27,791 25.5%
Gross profit margin % 19.5 20.6
Effective tax rate % 33.6 23.9
Net profit margin % 11.3 13.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Know More: Is India's Economic Recovery Sustainable?

ASIAN PAINTS Balance Sheet Analysis

  • The company's current liabilities during FY20 down at Rs 44 billion as compared to Rs 50 billion in FY19, thereby witnessing an decrease of -12.9%.
  • Long-term debt down at Rs 186 million as compared to Rs 195 million during FY19, a fall of 4.4%.
  • Current assets fell 1% and stood at Rs 76 billion, while fixed assets rose 6% and stood at Rs 64 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 162 billion as against Rs 163 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 95,197 101,302 6.4
 
Current Liabilities Rs m 50,289 43,803 -12.9
Long-term Debt Rs m 195 186 -4.4
Total Liabilities Rs m 162,781 161,548 -0.8
 
Current assets Rs m 76,341 75,801 -0.7
Fixed Assets Rs m 60,609 64,126 5.8
Total Assets Rs m 162,781 161,548 -0.8
* 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 FY20 stood at Rs 26 billion, an improvement of 6.6% 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 -25 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 26,319 6.6%
Cash Flow from Investing Activities Rs m -9,450 -5,214 -
Cash Flow from Financing Activities Rs m -11,175 -24,652 -
Net Cash Flow Rs m 4,338 -3,512 -
* 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 29.0, an improvement from the EPS of Rs 23.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,720.4, stands at 71.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 15.2 times, while the price to sales ratio stands at 7.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 47.0 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 201.6 210.7
TTM Earnings per share Rs 23.1 29.0
Diluted earnings per share Rs 23.1 29.0
Price to Cash Flow x 59.0 47.0
TTM P/E ratio x 71.7 71.7
Price / Book Value ratio x 13.2 15.2
Market Cap Rs m 1,650,208 1,650,208
Dividends per share (Unadj.) Rs 10.5 12.0
* 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 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 32.1x 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 27.4% during FY20, from 23.3% 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 36.8% during FY20, from 35.8% 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 17.8% during FY20, from 14.2% 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 36 32
Interest coverage x 32.1 36.0
Debt to equity ratio x 0.0 0.0
Return on assets % 14.2 17.8
Return on equity % 23.3 27.4
Return on capital employed % 35.8 36.8
* 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 1,524.6 to Rs 1,720.4, registering a gain of Rs 195.8 or around 12.8%.

Overall, the S&P BSE SENSEX is up 2.7% over the year.

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

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Related Views on News

ASIAN PAINTS Announces Quarterly Results (2QFY21); Net Profit Up 1.3% (Quarterly Result Update)

Oct 23, 2020 | Updated on Oct 23, 2020

For the quarter ended September 2020, ASIAN PAINTS has posted a net profit of Rs 8 bn (up 1.3% YoY). Sales on the other hand came in at Rs 54 bn (up 5.9% YoY). Read on for a complete analysis of ASIAN PAINTS's quarterly results.

ASIAN PAINTS Announces Quarterly Results (1QFY21); Net Profit Down 64.6% (Quarterly Result Update)

Jul 30, 2020 | Updated on Jul 30, 2020

For the quarter ended June 2020, ASIAN PAINTS has posted a net profit of Rs 2 bn (down 64.6% YoY). Sales on the other hand came in at Rs 29 bn (down 43.0% YoY). Read on for a complete analysis of ASIAN PAINTS's quarterly results.

ASIAN PAINTS 2018-19 Annual Report Analysis (Annual Result Update)

May 30, 2019 | Updated on May 30, 2019

Here's an analysis of the annual report of ASIAN PAINTS for 2018-19. 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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