asian paints financial management

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asian paints financial management

  1. 1. “Every Color Tells A Story”
  2. 2. •FINANCIAL STATEMENT ANALYSIS OF Asian Paints AND COMPARISON WITH 5 PEERS.
  3. 3. CompanyProfile Company Name: Asian Paints Type: Public Ltd. Industry: Paint Founded: 1942 Head quarter: Mumbai, India. Key People: Mr. K B S Anand CEO & MD Website: asianpaints.com
  4. 4. Information • BSE Code: 500820 • ISIN Demat: INE021A01026 • Book Value (Rs.): 31.51 • Dividend Yield (%): .85% • Market Cap (Rs Cr.): 51873.42 • P/E: 45.45 • EPS (Rs.): 11.90 • Face Value (Rs.): 1 • Volume: 112682
  5. 5. CompanyIntroduction  Asian Paints is the producer of wide range of paints  It was the first company to enter rural market in India  Innovative approach. Example : Trial Pack to chose color  Public issue of capital in 1982, listed on BSE, Scrip code- 500820  CRISIL has assigned ‘AAA’ rating
  6. 6. Key Products Paints Decorative Paints (70%) Interior Wall Paints Exterior Paints Industrial Coatings(30%) Automotive Coatings Non Auto Industrial Coatings
  7. 7. Company’s Journey Period Phase Strategy 1942-1967 Evolution Comparison from mnc, innovations, quality 1967-1982 Extension and consolidation Across border innovation in new categories 1982-1986 Years of excellence Campaign spectrum of excellence, connectivity with sales set 1987-1997 Moving closer to consumer Celebrate with Asian paints 1997-1999 Changing rules of game Helpline, paint calculator, shade card 2000 onwards The new asian paints CRM
  8. 8. Present Scenario  Asian Paints is the largest paint company in India and 3rd in Asia  Asian Paints is more than twice the size of its nearest competitor  Present in 17 countries with 23 manufacturing locations  50% market share in the decorative segment in India
  9. 9. Vision  To build long term value in the Industrial coatings business  Identifying needs of customers  Delivering customers value for money  Contribution to society
  10. 10. ManagementTeam Name Designation Amar Vakil Director Ashwin Choksi Chairman Ashwin Dani Vice Chairman Deepak Satwalekar Director Dipankar Basu Director Jayesh Merchant CFO, President & Co. Secretary Jayesh Merchant Secretary K B S Anand CEO K B S Anand Managing Director & CEO M K Sharma Additional Director Mahendra Choksi Director Mahendra Shah Director Malav Dani Non Executive Director R A Shah Director S Ramadorai Director
  11. 11. Share holding pattern Holder’s Name No. Of shares % share holding Indian Promoters 506344590 52.79 Banks Fin. Inst. and Insurance 69779014 7.27 FII's 182704390 19.05 Private Corporate Bodies 55499495 5.79 NRI’s / foreign others 14150339 1.48 General public 120845138 12.60
  12. 12. Mergers and Acquisition 2010 -Berger International Ltd Singapore (BIL), a subsidiary of Asian Paints Ltd , which is a wholly owned subsidiary of the Company -The Company's new paint plant at Rohtak in the State of Haryana has commenced commercial production -Asian Paints Signed a MOU with Maharashtra Govt. to set up a Mega Project for manufacture of Paints & Intermediate 2011 -Asian Paints to form second Joint Venture with PPG Industries. -Asian Paints - Company's subsidiary, SCIB Chemicals SAE has temporarily restarted the operations of its two plants in Egypt 2012 -Asian Paints - Production at the Company's Plant at Rohtak, Haryana has been restarted
  13. 13. Awards • Asian Paints was included in Forbes Magazine's - Asia's Fab 50 List of companies in 2011, 2012 and 2013. • Asian Paints was ranked 13th amongst the top paint companies in the world by Coatings World - Top Companies Report 2013 (July 2013 Issue). • In March 2012, Asian Paints was presented the Asian Centre for Corporate Governance & Sustainability Award for the Best Governed Company in 2011. • Mr. P M Murty, the then MD & CEO, Asian Paints received the 'CEO of the Year' award from Business Standard, one of India's leading business dailies (March 2011). • Asian Paints receives the Best Audit Committee Award from the Asian Centre for Corporate Governance & Sustainability (Feb 2011) • Awarded the "Sword of Honour" by the British Safety Council for all the paint plants in India. This award is considered as the pinnacle of achievement in safety across the world.
  14. 14. Leaders in thepaint industry • Asian Paints • Berger paints • Kansai Paints • Akzo Nobel • Shalimar paints • Jenson & Nicholson
  15. 15. Competitors Berger Paints India Limited Type Public company (BSE: 509480,NSE: BERGEPAINT) Industry Paint Founded17 December 1923 Head quarters Kolkata, India Key people Abhijit roy (MD) Revenue30 billion (US$490 million) Profit 1.77 billion (US$29 million) Employees 2,464 (2013) Websitebergerpaints.com
  16. 16. Kansai Nerolac Paints Type Public company Traded as BSE: 500165 NSE: KANSAINER Industry Paint Founded 1920 Headquarters Mumbai, India Key people H.M.Bharuka (MD) Revenue23774.3 million (US$390 million) Profit 2059.8 million (US$34 million) Total assets 9986.4 million Employees2000 approx. Parent Kansai Paints Ltd. Japan Website Official Website
  17. 17. Akzo Nobel N.V. Type Naamloze vennootschap Traded as Euronext: AKZA OTCQX: AKZOY Industry Chemicals Founded 1994 Headquarters Amsterdam, Netherlands Area served Worldwide Key people Ton Büchner (CEO) Karel Vuursteen (Chairman of thesupervisory board) Products Basic and industrial chemicals, decorative paints, industrial(re)finishing products, coatings Revenue€14.59 billion (2013) Profit€724 million (2013) Employees49,560 (end 2013) Websitewww.akzonobel.com
  18. 18. Shalimar Paints Type Public BSE: 509874 Industry Paint Founded 1902 Founder(s) AN Turner, AC Wright Headquarters Mumbai, India India Key people Mr. Ratan Jindal Mr. Girish Jhunjhnuwala Mr. Sameer Nagpal Products Paint Revenue 3673 million (US$60 million) WebsiteOfficial Website
  19. 19. • Jenson & Nicholson: • Incorporated in 1922, Jenson & Nicholson (I) Ltd., or J&N as it is popularly known, is India’s second oldest paint company. Roots trace back to a business established in 1821 in London, which eventually became a partnership between John Jenson and Wilfred Nicholson. • In 1973, Jenson & Nicholson (I) Ltd. emerged as an independent company and is a major player in the Indian market. • The company continually strives to foresee market requirements and using global technology delivers unsurpassed quality in every can. • Its emphasis on quality and innovation has earned the trust of consumers, dealers, painters and architects. • Company continually benchmark our offerings with the best in the market and ensure that we exceed expectations.
  20. 20. Market share in India 20% 9% 7%64% Asian Paints Kansai Nerolac Berger Akzo Nobel Shalimar Paints Jenson & Nicholson
  21. 21. PRESENCE OF ASAIN PAINTS GLOBALLY:-
  22. 22. Region–wise contribution 14% 51% 27% 8% Sales Caribbean Middle East Asia South Pacific
  23. 23. Sales Break up – Product Wise Product Name Quantity Sales Value (in Crores) Paints, Enamels , Varnishes 433318 tonnes 3906.22 Phthalic Anhydride 12783 tonnes 86.59 Others 32.19 Penta Erthritol 2642 tonnes 27.3 Processing Charges 12.38 Other Services 9.79 Sodium Formate 3166 tonnes 6.42 Formaldehyde 368 tonnes 1.21 Lease Rentals 0.59 Total 4082.69
  24. 24. LIQUIDITY RATIOS  Current Ratio • A current ratio of 2 would mean that current assets are sufficient to cover for twice the amount of a company's short term liabilities.  Quick ratio Quick Ratio, also known as Acid Test Ratio, shows the ratio of cash and other liquid resources of an organization in comparison to its current liabilities. – • Quick ratio of 0.5 would suggest that a company is able to settle half of its current liabilities instantaneously. • Quick Ratio= CA – stock CL
  25. 25. LiquidRatio of Asian Paints 1.13 0.89 0.93 1.07 1.18 0 0.2 0.4 0.6 0.8 1 1.2 1.4 2009 2010 2011 2012 2013 Current Ratio 0.59 0.38 0.34 0.57 0.61 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2009 2010 2011 2012 2013 Quick Ratio
  26. 26. Profitability ratios • EBITDA This ratio helps in determining the percentage of revenue left over after the company pays its operating expenses. • ROCE-It measures the profitability of a company by expressing its operating profit as a percentage of its capital employed ROCE = Net Operating Profit Capital Employed
  27. 27. EPS • The portion of a company's profit allocated to each outstanding share of common stock. • Earnings per share serves as an indicator of a company's profitability. PE RATIO A valuation ratio of a company's current share price compared to its per-share earnings. Current Share Price Earnings per Share
  28. 28. Debt Equity Ratio 0.06 0.04 0.03 0.07 0.02 0 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 2009 2010 2011 2012 2013 Debt equity Ratio
  29. 29. Profitability Ratio of Asian Paint 2009 2010 2011 2012 2013 ROE(%) 33.10 49.73 39.24 38.52 34.74 ROCE (%) 49.35 62.94 55.73 52.24 50.38 NET PROFIT MARGIN (%) 7.97 14.29 11.61 11.38 11.54 EBITDA 11.80 17.94 15.97 15.45 15.61 GROSS PROFIT MARGIN 11.90 18.11 16.14 15.61 15.83
  30. 30. 37.78 80.74 80.81 99.92 109.47 0 20 40 60 80 100 120 2009 2010 2011 2012 2013 EPS
  31. 31. P & L of Asian Paints
  32. 32. Balance Sheet Of Asian Paints
  33. 33. Price Comparison With Sensex
  34. 34. FUNDAMENTAL ANALYSIS OF ASIAN PAINTS AND PEER GROUPS
  35. 35. Competition (2013) Name Last Price Market Cap. (Rs. cr.) Sales Turnover Net Profit Total Assets Asian Paints 539.85 51,782.29 8,971.70 1,050.00 3,069.02 Berger Paints 225.55 7,814.77 3,024.21 209.80 1,287.45 Kansai Nerolac 1,179.95 6,358.98 2,856.60 292.20 1,346.46 Akzo Nobel 887.90 4,142.97 2,231.98 218.83 1,105.30 Shalimar Paints 72.15 136.57 530.18 11.02 163.12 Jenson Nicholso 2.05 7.67 59.25 -5.84 -230.94
  36. 36. Net sales (2013) 8971.7 3006.56 2856.62 2232 541.64 59.25 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 Asian Paints Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson and Nicholoson Rs. Cr.
  37. 37. Latest SharePrice(ason 30th march2014) Company Name Open High Low Last Price Prv Price Change % Chg •Akzo Nobel 870.00 894.70 870.00 886.95 876.55 10.40 1.19 •Asian Paints 539.00 542.90 533.65 537.85 537.25 0.60 0.11 •Berger Paints 223.95 228.45 223.95 225.50 223.55 1.95 0.87 •Jenson Nicholso 2.04 2.22 2.01 2.22 2.00 0.22 11.00 •Kansai Nerolac 1166.00 1180.00 1142.10 1175.50 1150.65 24.85 2.16 •Shalimar Paints 72.90 73.00 71.55 72.75 71.95 0.80 1.11
  38. 38. Debt Equity Ratio Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso 2011 0.03 0.11 0.09 0 1.17 0 2012 0.07 0.2 0.06 0 1.13 0 2013 0.02 0.31 0.05 0 1.17 0 0 0.2 0.4 0.6 0.8 1 1.2 1.4 AxisTitle
  39. 39. Interest Coverage Ratio Years Asian Paint Berger Kansai Nerolac Akzo Noble Shalimar Paints Jenson Nicholso 2011 74.05 17.99 310.54 103 2.99 -1.28 2012 50.66 15.14 3407.78 54.63 3.07 -0.20 2013 50.60 11.59 19081.75 32.36 2.07 -0.89
  40. 40. Liquidity Ratio 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 ASIAN PAINTS BERGER NEROLAC SHAALIMAR DULUX 0.93 1.43 1.52 0.85 0.1 1.07 1.44 1.66 0.87 0.15 1.18 1.25 1.54 0.92 0.5 Current Ratio 2010-11 2011-12 2012-13
  41. 41. Liquidity Ratio Quick Ratio 0.61 1.23 0.8 0.12 0.95 0.57 1.1 0.84 0.13 0.96 0.34 0.99 0.74 0.41 0.96 0 0.2 0.4 0.6 0.8 1 1.2 1.4 ASIAN PAINTS BERGER NEROLAC DULUX SHALIMAR 2010-11 2011-12 2012-13
  42. 42. Profitability Ratio GROSS PROFIT RATIO Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso 2011 16.14 8.77 10.7 9.21 5.73 -14.62 2012 15.61 9.19 10.24 7.29 6.91 -7.56 2013 15.83 9.64 10.11 6.71 6.31 -8.35 -20 -15 -10 -5 0 5 10 15 20 AxisTitle
  43. 43. Profitability Ratio NET PROFITMARGIN Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso 2011 11.61 6.99 9.03 14.8 2.87 -8.33 2012 11.38 6.61 7.86 10.1 2.97 1.22 2013 11.54 6.9 10.71 9.43 2.03 -9.51 -15 -10 -5 0 5 10 15 20 AxisTitle %
  44. 44. Profitability Ratio EBITDA Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso 2011 15.97 8.62 10.6 8.89 5.7 -13.5 2012 15.45 9.09 10.19 7.22 6.91 -7.09 2013 15.61 9.52 10.05 6.32 6.31 -8.05 -15 -10 -5 0 5 10 15 20 AxisTitle
  45. 45. Return onCapital Employed Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso 2011 55.73 27.36 26.2 14.17 22.61 81.86 2012 52.24 27.02 25.88 11.38 26 0.22 2013 50.38 24.99 22.67 26.05 21.06 1.18 0 10 20 30 40 50 60 70 80 90 AxisTitle %
  46. 46. Return onEquity Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso 2011 39.24 20.56 22.98 16.2 22.97 0.99 2012 38.52 21 20.3 14.12 23.76 -1.17 2013 34.74 21.31 22.72 19.79 14.68 1.43 -5 0 5 10 15 20 25 30 35 40 45 AxisTitle %
  47. 47. Growth Values EBITDA GROWTH Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso 2011 6.39 26.3 10.27 4.27 14.15 -38.92 2012 21.13 21.63 15.42 23.77 35.86 330.16 2013 12.05 19.14 -2.53 13.84 -5.62 -133.82 -200 -100 0 100 200 300 400 AxisTitle %
  48. 48. Growth Values PAT GROWTH 23.63 15.11 25.48 16.85 11.38 22.29 31.55 26.34 21.45 81.24 19.47 19.17 12.84 13.6 9.85 12.28 8.99 11.28 Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso % 2011 2012 2013
  49. 49. Growth Values Sales Growth Asian Paint Berger Paints Kansai Nerolac Akzo Nobel Shalimar Paints Jenson Nicholso 2011 0.08 25.11 24.46 10.86 16.68 -23.32 2012 23.64 26.34 4.81 14.27 23.95 117.27 2013 9.56 13.6 35.34 8.42 -23.82 -943.03 -1000 -800 -600 -400 -200 0 200 AxisTitle %
  50. 50. Conclusion As per the data analyse Asian paints is the biggest player in the paint sector. Berger paints is the second largest player and growing very fast in paint sector. DULUX paints is in loss in India and focuses only on international market therefore is in loss in India. Shalimar paints focuses only on India market. Nerolac paints growth is slow

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