Budget News

Asian Paints
July 27,2022 00:13

AsianPaints consolidated net sales increased 54.10% to Rs 8606.94 crore in Q1FY23compared to Q1FY22. Operating profitmargin has jumped from 16.36% to 18.08%, leading to 70.32% rise in operatingprofit to Rs 1,555.95 crore. Rawmaterial cost as a % of total sales (net of stock adjustments) decreased from54.92% to 51.69%. Purchase of finishedgoods cost rose from 10.67% to 11.92%. Employee cost decreased from 6.93% to 5.49%. Other expenses rose from 12.84% to13.45%.

Salesfor Bath Fittings business increases by 120.1% to Rs 117.99 crore from Rs 53.61crore in the corresponding period of previous year. PBDIT for Bath Fittingsbusiness increases to Rs 4.21 crore as against a loss of Rs 1.04 crore in thelast year. Sales for Kitchens business increases by 68.3% to Rs 109.04 crorefrom Rs 64.79 crore in the corresponding period of previous year. PBDIT lossfor Kitchen business reduced to Rs 4.00 crore as against a loss of Rs 5.38 crorein the last year.

Otherincome rose 10.45% to Rs 98.97 crore. PBIDT rose 64.97% to Rs 1654.92 crore. Provision for interest rose 33.85% to Rs 28.75 crore.

PBDTrose 65.65% to Rs 1626.17 crore. Provision for depreciation rose 3.74% to Rs 208.1 crore.

Profitbefore tax grew 81.55% to Rs 1,418.07 crore. Share of Profit/(Loss) from Associates was Rs 12.76 crore compared toloss of Rs 2.52 crore. The company reported EO expense of Rs 24.21 crorecompared to nil in the corresponding previous year period. PBT after EO was up84% to Rs 1406.62 crore. Economic crisis in Sri Lanka led to currencydevaluation resulting in recognition of an exceptional item of Rs 24.21 croretowards exchange loss arising on foreign currency obligations of CausewayPaints Lanka (Pvt.) Limited (Causeway Paints) for the quarter ended 30th June,2022.

Provisionfor tax was expense of Rs 370.59 crore compared to Rs 204.28 crore. Effective tax rate was 26.35% compared to26.24%.

Minorityinterest increased 229.31% to Rs 19.10 crore. Net profit attributable to owners of the company increased 78.88% to Rs1,016.93 crore.

Promoters'stake was 52.63% as of 30 June 2022 compared to 52.79% as of 30 June 2021. Promoters pledged stake was 10.99% asof 30 June 2022 compared to 9.03% as of 30 June 2021.

“Thedomestic decorative business experienced good consumer demand and recordedstellar revenue growth for the quarter. The volume growth registered in thequarter is one of the highest in the last six quarters. The business alsoregistered robust 4-year compounded growth in volume and value terms. The AutoOE and the General Industrial Coatings business delivered a sturdy growthtrajectory. We continued to make further inroads in our Home Décor business,proliferating its product & service offerings. The International businessalso delivered a good double digit revenue growth for the quarter despitemultiple headwinds across key geographies. While the persistent inflationaryenvironment continued to impact the gross margins, we delivered healthyoperating margins with strong push on the premium & luxury offerings anddriving further operational efficiencies across businesses.”, said Amit Syngle, Managing Director &CEO of Asian Paints Limited.

Full year resultsanalysis

Netsales of Asian Paints have increased 34.03% to Rs 29101.28 crore. Sales of Paints segment has gone up 33.69% toRs 28,349.54 crore (accounting for 97.39% of total sales). Sales of Home Improvement segment rose 49.08%to Rs 758.36 crore (accounting for 2.61% of total sales). Inter-segment sales rose Rs 1.65 crore to Rs6.62 crore.

Operatingprofit margin has declined from 22.36% to 16.51%, leading to 1.07% decline inoperating profit to Rs 4,803.61 crore. Raw material cost as a % of total sales (net of stock adjustments)increased from 47.31% to 53.42%. Purchase of finished goods cost rose from 8.59% to 11.08%. Employee cost decreased from 7.07% to5.87%. Other expenses fell from 14.76%to 13.84%.

Otherincome rose 25.40% to Rs 380.01 crore. PBIDT rose 0.48% to Rs 5183.62 crore. Provision for interest rose 4.13% to Rs 95.41 crore. Loan funds rose to Rs 1,586.88 crore as of 31March 2022 from Rs 1,093.12 crore as of 31 March 2021. Inventories rose to Rs 6,152.98 crore as of31 March 2022 from Rs 3,798.60 crore as of 31 March 2021. Sundry debtors were higher at Rs 3,871.44crore as of 31 March 2022 compared to Rs 2,602.17 crore as of 31 March 2021. Cash and bank balance rose to Rs 864.33 croreas of 31 March 2022 from Rs 610.75 crore as of 31 March 2021. Investments declined from Rs 4,736.80 croreas of 31 March 2021 to Rs 3,247.53 crore as of 31 March 2022.

PBDTrose 0.42% to Rs 5088.21 crore. Provision for depreciation rose 3.17% to Rs 816.36 crore. Fixed assets increased to Rs 5,516.64 croreas of 31 March 2022 from Rs 5,504.88 crore as of 31 March 2021. Intangible assets declined from Rs 536.62crore to Rs 428.85 crore.

Profitbefore interest, tax and other unallocable items (PBIT) has slumped 2.40% to Rs4,370.42 crore. PBIT of Paints segmentfell 2.85% to Rs 4,377.36 crore (accounting for 100.16% of total PBIT). PBIT of Home Improvement segment rose 74.88%to Rs -6.94 crore (accounting for -0.16% of total PBIT).

PBITmargin of Paints segment fell from 21.25% to 15.44%. PBIT margin of Home Improvement segment rosefrom negative 5.43% to negative 0.92%. Overall PBIT margin fell from 20.62% to 15.01%.

Profitbefore tax down 0.09% to Rs 4,271.85 crore. Share of profit/loss was 10.38% higher at Rs 31.57 crore. PBT before EOwas flat at Rs 4303.42 crore. The company reported EO expense of Rs 115.7 crorecompared to nil in the corresponding previous year period. PBT after EO wasdown 3% to Rs 4187.72 crore.

Provision for tax was expense of Rs 1102.91crore, compared to Rs 1097.6 crore. Effective tax rate was 26.34% compared to 25.50%. Minority interestdecreased 19.60% to Rs 54.24 crore. Netprofit attributable to owners of the company decreased 3.46% to Rs 3,030.57crore.

Equitycapital stood at Rs 95.92 crore as of 31 March 2022 to Rs 95.92 crore as of 31March 2021. Per share face Valueremained same at Rs 1.00.

Promoters'stake was 52.63% as of 31 March 2022 compared to 52.79% as of 31 March2021. Promoters pledged stake was 11.08%as of 31 March 2022 compared to 9.44% as of 31 March 2021.

Cashflow from operating activities decreased to Rs 986.49 crore for year endedMarch 2022 from Rs 3,683.35 crore for year ended March 2021. Cash flow used in acquiring fixed assetsduring the year ended March 2022 stood at Rs 550.70 crore, compared to Rs288.71 crore during the year ended March 2021.

TheBoard of Directors have recommended a final dividend of Rs 15.50 per equityshare (1550%). The company distributed first interim dividend of Rs 3.65 perequity share (365%) in October 2021 for FY 2021-22. Total dividend of Rs 19.15per equity share (1915%) was distributed for FY 2021-22. The dividend payoutratio was 58.6% for FY 2021-22

Thescrip is currently trading at Rs 3107

Asian Paints : Consolidated Results
Particulars	2206 (03)	2106 (03)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Net Sales	8,606.94	5,585.36	54	29,101.28	21,712.79	34
OPM (%)	18.1	16.4		16.5	22.4
OP	1,555.95	913.56	70	4,803.61	4,855.60	-1
Other Inc.	98.97	89.61	10	380.01	303.05	25
PBIDT	1,654.92	1,003.17	65	5,183.62	5,158.65	0
Interest	28.75	21.48	34	95.41	91.63	4
PBDT	1,626.17	981.69	66	5,088.21	5,067.02	0
Depreciation	208.1	200.59	4	816.36	791.27	3
PBT	1,418.07	781.1	82	4271.85	4275.75	0
Share of Profit/(Loss) from Associates	12.76	-2.52	LP	31.57	28.6	10
PBT before EO	1430.83	778.58	84	4303.42	4304.35	0
EO Income	-24.21	0	-	-115.7	0	-
PBT after EO	1406.62	778.58	81	4187.72	4304.35	-3
Taxation	370.59	204.28	81	1102.91	1097.6	0
PAT	1036.03	574.3	80	3084.81	3206.75	-4
Minority Interest (MI)	19.1	5.8	229	54.24	67.46	-20
Net profit	1016.93	568.5	79	3030.57	3139.29	-3
EPS (Rs)*	#	#		32.5	32.7
Notes
* EPS is on current equity of Rs 95.92 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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