ASIAN PAINTS 2021-22 Annual Report Analysis
Wed, 8 Jun

ASIAN PAINTS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ASIAN PAINTS Income Statement Analysis

  • Operating income during the year rose 34.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 3.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.1% in FY22 as against 22.4% in FY21.
  • Depreciation charges increased by 3.2% and finance costs increased by 4.1% YoY, respectively.
  • Other income grew by 25.4% YoY.
  • Net profit for the year declined by 3.9% YoY.
  • Net profit margins during the year declined from 14.6% in FY21 to 10.5% in FY22.

ASIAN PAINTS Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 217,128 291,013 34.0%
Other income Rs m 3,031 3,800 25.4%
Total Revenues Rs m 220,158 294,813 33.9%
Gross profit Rs m 48,556 46,879 -3.5%
Depreciation Rs m 7,913 8,164 3.2%
Interest Rs m 916 954 4.1%
Profit before tax Rs m 42,758 41,562 -2.8%
Tax Rs m 10,976 11,029 0.5%
Profit after tax Rs m 31,782 30,532 -3.9%
Gross profit margin % 22.4 16.1
Effective tax rate % 25.7 26.5
Net profit margin % 14.6 10.5
* 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 FY22 stood at Rs 76 billion as compared to Rs 59 billion in FY21, thereby witnessing an increase of 27.8%.
  • Long-term debt stood at Rs 445 million as compared to Rs 145 million during FY21, a growth of 206.5%.
  • Current assets rose 26% and stood at Rs 152 billion, while fixed assets fell 6% and stood at Rs 78 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 230 billion as against Rs 204 billion during FY21, thereby witnessing a growth of 13%.

ASIAN PAINTS Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 128,063 137,982 7.7
 
Current Liabilities Rs m 59,259 75,710 27.8
Long-term Debt Rs m 145 445 206.5
Total Liabilities Rs m 203,553 229,584 12.8
 
Current assets Rs m 120,266 151,523 26.0
Fixed Assets Rs m 83,287 78,061 -6.3
Total Assets Rs m 203,553 229,584 12.8
* 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 FY22 stood at Rs 10 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -3 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -18 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs -11 billion from the Rs 25 billion net cash flows seen during FY21.

ASIAN PAINTS Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 36,834 9,865 -73.2%
Cash Flow from Investing Activities Rs m -5,478 -3,217 -
Cash Flow from Financing Activities Rs m -6,504 -18,076 -
Net Cash Flow Rs m 24,924 -11,379 -
* 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 31.8, an decline from the EPS of Rs 33.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,738.0, stands at 86.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 19.0 times, while the price to sales ratio stands at 9.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 75.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 226.4 303.4
TTM Earnings per share Rs 33.1 31.8
Diluted earnings per share Rs 33.1 31.8
Price to Cash Flow x 61.3 75.3
TTM P/E ratio x 76.6 86.0
Price / Book Value ratio x 16.3 21.1
Market Cap Rs m 2,088,294 2,912,172
Dividends per share (Unadj.) Rs 17.9 19.2
* 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 deteriorated and stood at 2.0x during FY22, from 2.0x during FY21. 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 44.6x during FY22, from 47.7x during FY21. 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 22.1% during FY22, from 24.8% during FY22. 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 30.7% during FY22, from 34.1% during FY21. 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 13.7% during FY22, from 16.1% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 2.0 2.0
Debtors’ Days Days 4 5
Interest coverage x 47.7 44.6
Debt to equity ratio x 0.0 0.0
Return on assets % 16.1 13.7
Return on equity % 24.8 22.1
Return on capital employed % 34.1 30.7
* 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 down from Rs 2,928.1 to Rs 2,738.0, registering a loss of Rs 190.1 or around 6.5%.

Overall, the S&P BSE SENSEX is up 5.6% 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 3,335.5 per share. You can check out the latest share price performance of ASIAN PAINTS here...

What was the revenue of ASIAN PAINTS in FY22? How does it compare to earlier years?

The revenues of ASIAN PAINTS stood at Rs 294,813 m in FY22, which was up 33.9% compared to Rs 220,158 m reported in FY21.

ASIAN PAINTS' revenue has grown from Rs 167,568 m in FY18 to Rs 294,813 m in FY22.

Over the past 5 years, the revenue of ASIAN PAINTS has grown at a CAGR of 15.2%.

What was the net profit of ASIAN PAINTS in FY22? How does it compare to earlier years?

The net profit of ASIAN PAINTS stood at Rs 30,532 m in FY22, which was down -3.9% compared to Rs 31,782 m reported in FY21.

This compares to a net profit of Rs 27,235 m in FY20 and a net profit of Rs 21,673 m in FY19.

Over the past 5 years, ASIAN PAINTS net profit has grown at a CAGR of 10.4%.

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 decreased in FY22 and stood at Rs 9,865 m as compared to Rs 36,834 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs -3,217 m as compared to Rs -5,478 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -18,076 m as compared to Rs -6,504 m in FY21.

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

(Rs m)FY18FY19FY20FY21FY22
From Operations21,13424,69530,38236,8349,865
From Investments-15,993-9,445-5,214-5,478-3,217
From Financial Activity-13,791-11,175-28,715-6,504-18,076
Net Cashflow-8,2184,343-3,51224,924-11,379

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 stood at 16.1% in FY22 as against 22.4% in FY21.
  • Net profit margins declined from 14.6% in FY21 to 10.5% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

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

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)19.519.420.522.416.1
Net Profit Margin (%)12.511.213.414.610.5
Debt to Equity Ratio (x)0.00.00.00.00.0