Analyst Presentation of Asian paints annual report summary - FY2013 Results

7/29/2019 Analyst Presentation of Asian paints annual report summary - FY2013 Results

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INVESTOR PRESENTATION

12M : FY 2012-139thMay2013


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Disclaimer

This presentation may contain statements which reflect

Managements current views and estimates and could be construed

as forward looking statements. The future involves certain risks anduncertainties that could cause actual results to differ materially from

the current views being expressed. Potential risks and uncertainties

,

exchange fluctuations, competitive product and pricing pressures and

regulatory developments.

Responses can only be given to questions which are not price

sensitive.


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Economic Environment

Company Performance

Business Review

Risks and Outlook


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Company Performance

Business Review

Risks and Outlook


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Global Uncertainties continue in the broader economic environment

Euro zone continues its struggle with the debt crisis

While US has been showing glimmers of recovery, threat of fiscal cliff

continues Impact of the new economic experiment of aggressive monetary stimulus to

stop deflation and boost growth in Japan still unclear

India

Private sector investments down sharply

Burgeoning current account and fiscal deficit due to fiscal indiscipline

Currency remained weak during most part of the year

Reversal in commodity prices getting negated due to the weak localcurrency

Most sectors faced volatile business conditions

On a positive side, Inflation has started edging lower leading to monetary easing


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Company Performance

Business Review

Risks and Outlook


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Corporate Highlights

Asian Paints new brand identity unveiled during the year

Forays into Home Improvement by exploring an agreement with the Sleek Group

New plant at Khandala with initial capacity of 300,000 KL commissioned

International Business PAT crosses Rs 100 crores

Second 50:50 JV with PPG becomes operational during the year

Final Dividend of Rs. 36.50 per equity share (365%)

Sub-division of equity share of the face value of Rs. 10 to Re. 1


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Financials Q4 FY 2012-13

Price reduction of 0.20% effected in January 2013

Hi her de reciation in Q4 due to Khandala Plant

STANDALONE (Rs Crs) 2012-13 2011-12 Growth %

Income from Operations 2232.5 2075.8 7.5%

PBDIT 354.0 337.4 4.9%

PBDIT % 15.9% 16.3% PAT 239.6 244.6 -2.1%

CONSOLIDATED (Rs Crs) 2012-13 2011-12 Growth %


PBDIT 393.0 378.0 4.0%

PBDIT% 14.4% 14.9%

PAT after Minority Interest 251.1 259.5 -3.2%


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Standalone Income from Operations YoY Growth

28.9%

25.5%

20.3%

28.9%

25.7%

16.2%

20.0%

12.7%15.0%

20.0%

25.0%

30.0%

35.0% Standalone Income from Operations

Note:Industrial business of APL was transferred to AP Coatings in June 2011. Hence, numbers for the period after June 2011needs to be interpreted accordingly.

6.7% 7.5%

0.0%

5.0%

10.0%

Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 12M FY

2012


2013


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Standalone PBIT margins Paint Segment

18.9%

16.6%

18.5%

16.2%

17.6%

20.4%

15.5%

18.4%

15.5%

17.4%

10.0%

15.0%

20.0%

25.0%

Note:Industrial business of APL was transferred to AP Coatings in June 2011. Hence, numbers for the period after June 2011 needs tobe interpreted accordingly.

0.0%

5.0%


2012


2013


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Financials 12M FY 2012-13

STANDALONE (Rs Crs) 2012-13 2011-12 Growth %


PBDIT 1547.3 1351.8 14.5%PBDIT% 17.2% 17.0%

PAT 1050.0 958.4 9.6%

CONSOLIDATED (Rs Crs) 2012-13 2011-12 Growth %


PBDIT 1731.9 1508.8 14.8%

PBDIT% 15.8% 15.7%

PAT after Minority Interest 1113.9 988.7 12.7%


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In FY 2012-13

Total Dividend of Rs. 46.00 per share

Final dividend of Rs. 36.50 per share

Interim dividend of Rs. 9.50 per share

Payout ratio of 49.1% for the year

DIVIDEND

In FY 2011-12

Total Dividend of Rs. 40.00 per share

Final dividend of Rs. 30.50 per share

Interim dividend of Rs. 9.50 per share

Payout ratio of 46.5% for the year


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Company Performance

Business Review

Risks and Outlook


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Business Review Decoratives India

Demand Conditions were subdued

Growth lower as compared to trend seen in earlier years

Growth mainly led by Emulsions

South division fared better than other regions Cumulative Price increase during the year is 5.1%

Price increase of 1.2% affected w.e.f May 2013

Inflationary pressures in raw materials lower compared to last year

12M FY13 consumption average was at 104.57, taking 12MFY12 base as100.

Q4 12-13 Q3 12-13 Q2 12-13 Q1 12-13

Actual Consumption Average 101.76 102.56 107.71 106.67


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Business Review Decoratives India

Capital Expenditure:

Khandala Plant with an initial capacity

of 300,000 KL commissioned in Feb,

2013

Capacity addition of 50,000 KL

completed at Rohtak in Apr 12

Current total installed paints capacity at

9,44,000 KL

Sales & Marketing:

Colour Idea Stores 97 stores launched

Over 24,000 colour world machines

installed by end of FY 13

Launch of a new and vibrant website

Colour Consultancy at Home (CCH)

launched in 5 cities

Upgraded APHS service launched in

Delhi and Ben aluru

Waterproofing products (SmartCare)launched


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Business Review International

Performance

Good value growth seen across regions

Growth higher due to currency

impact as well

Material cost inflation moderate

during the year, having a positive

impact on margins

Regions 12M 12-13 12M 11-12 Gr%

Caribbean 197.2 171.8 14.8%

Middle East 726.7 578.4 25.6%

Asia 380.0 314.7 20.7%

South Pacific 113.4 90.6 25.2%

Total 1,417.3 1,155.6 22.7%

Paint Sales (Rs Crores)

Improved demand conditions in Middle

East even though political events and

macro economic uncertainty in some

countries continues

Global slowdown impacting others

regions

Royalty to AP from International

operations at Rs. 20.9 crores

Regions 12M 12-13 12M 11-12 Gr%Caribbean 11.2 7.6 45.8%

Middle East 73.9 61.5 20.1%

Asia 35.6 24.6 44.5%

South Pacific 15.4 12.2 26.1%

Total 136.0 106.0 28.3%

PBIT (Rs Crores)


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Business Review Industrial India

Auto and Non-Auto Industrial Demand for Industrial coatings remained weak due to the Industrial

slowdown

Demand for Automotive coatings was impacted due to the slowdown in the

Automotive sector as fuel prices and interest rates remained high

PPGAP experienced high material cost inflation on account of both prices as

well as weak currency

acqu re ruppa a n s n e mon o ovem er


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Company Performance

Business Review

Risks and Outlook


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Outlook

Decoratives Demand conditions seem challenging considering the subdued economic

environment

Normal rainfall prediction; would give comfort on rural demand

Correction in commodity prices and crude have eased outlook on margins

International

Business environment continues to remain uncertain in Middle East and Egypt

Caribbean region might continue to face slowdown

Demand conditions to remain moderate in South Asia

Auto and Non-Auto Industrial

Automotive sector witnessing sharp drop in demand; automotive coatings

segment expected to face tough business conditions

Non Auto demand conditions are not very optimistic. However, expected easing ofmonetary policy and Govts policy momentum might improve the demand outlook


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Thank You


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Annexures


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Consolidated Q4 FY 2012-13

Rs Crores

Particulars Q4 12-13 Q4 11-12 Gr %

Income from Operations 2,733.1 2,542.9 7.5%

Material Cost 1,552.3 1,526.1 1.7%

Employee Remuneration 160.1 135.4 18.2%

Other Expenses 627.7 503.4 24.7%

PBDIT 393.0 378.0 4.0%

Depreciation 48.9 31.4 55.7%

Profit from Operations 344.2 346.6 -0.7%

Ot er Income 38.2 42.8 -10. %

PBIT 382.4 389.4 -1.8%Interest 5.8 15.0 -61.5%

PBT 376.6 374.4 0.6%

Curr. & Def Tax 117.8 109.7 7.4%

PAT before Minority interest 258.9 264.7 -2.2%

Minority Share 7.7 5.2 47.9%PAT 251.1 259.5 -3.2%

EPS 26.2 27.1 -3.2%


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Standalone Q4 FY 2012-13

Rs Crores

Particulars Q4 12-13 Q4 11-12 Gr %


Material Cost 1,258.0 1,238.8 1.5%

Employee Remuneration 104.9 85.3 22.9%

Other Expenses 515.7 414.3 24.5%

PBDIT 354.0 337.4 4.9%


Profit from operations 313.9 311.9 0.7%

Other Income 43.7 48.6 -10.1%

PBIT 357.6 360.5 -0.8%

Interest 6.9 13.7 -49.9%

PBT 350.8 346.8 1.1%

Curr. & Def Tax 111.2 102.2 8.8%

PAT 239.6 244.6 -2.1%

EPS 25.0 25.5 -2.1%


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Consolidated 12M FY 2012-13

Rs Crores

Particulars FY 12-13 FY 11-12 Gr %


Material Cost 6,438.4 5,795.3 11.1%

Employee Remuneration 623.6 526.0 18.6%Other Expenses 2,176.8 1,802.2 20.8%

PBDIT 1,731.9 1,508.8 14.8%


Profit from O erations 1,577.3 1,387.6 13.7%

Other Income 114.5 107.4 6.6%

PBIT 1,691.9 1,495.1 13.2%

Interest 36.6 41.0 -10.6%

PBT 1,655.2 1,454.1 13.8%

Curr. & Def Tax 495.7 433.5 14.3%

PAT before Minority interest 1,159.5 1,020.6 13.6%

Minority Share 45.6 31.9 43.3%

PAT 1,113.9 988.7 12.7%

EPS 116.1 103.1 12.7%


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Standalone 12M FY 2012-13

Rs Crores

Particulars FY 12-13 FY 11-12 Gr %


Material Cost 5,188.9 4,746.3 9.3%

Employee Remuneration 404.6 341.6 18.4%Other Expenses 1,831.0 1,524.4 20.1%

PBDIT 1,547.3 1,351.8 14.5%


, . , . .

Other Income 126.2 141.5 -10.8%PBIT 1,546.4 1,393.8 11.0%

Interest 30.6 30.8 -0.8%

PBT 1,515.9 1,362.9 11.2%

Curr. & Def Tax 465.9 404.5 15.2%

PAT 1,050.0 958.4 9.6%EPS 109.5 99.9 9.6%


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Key Ratios

12M 12-13 12M 11-12 12M 12-13 12M 11-12

57.8% 59.6% 58.7% 60.2%

17.2% 17.0% 15.8% 15.7%

16.9% 17.1% 15.1% 15.1%

11.7% 12.0% 10.2% 10.3%

For Consolidated results PAT is af ter Minority Interest

Consolidated

% to Income from Operations

Material Cost

PBDIT

PBT

PAT

Standalone

Analyst Presentation of Asian paints annual report summary - FY2013 Results

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