Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — H1 FY2006 Earnings Presentation
16 slides from Asian Paints's earnings presentation, Oct 26, 2005
Slide 1: Investor Presentation H1 - FY 2006
1 Investor Presentation H1 - FY 2006 October 26, 2005 2 Presentation structure • Results : Q2 – FY 2006 • Results : H1 - FY 2006 • Outlook and Risks : FY 2006 1
Slide 2: Highlights : Q2 – FY2006
3 Highlights : Q2 – FY2006 • Consolidated sales have grown by 15.8 % – Sales growth for Asian Paints standalone is 16.3 % • Sales in Q2 impacted on account of prolonged rains in several seasonal markets – No long term impact; unlikely to impact annual sales • September sales were poor in some region
Slide 3: Consolidated P&L – Q2 FY06
5 Consolidated P&L – Q2 FY06 6 Consolidated Sales breakup : Q2 FY 2006 * 50 % of Asian PPG Industries sales are included 3
Slide 4: Standalone P&L – Q2 FY06
7 Standalone P&L – Q2 FY06 8 Presentation structure • Results : Q2 – FY 2006 • Results : H1 - FY 2006 • Outlook and Risks : FY 2006 4
Slide 5: Dividend and Highlights - Consolidated results H1 FY2006
9 Dividend • Interim dividend of 45% for the FY 2006 • Interim dividend of 40% distributed for the FY 2005 • Total dividend of 95 % distributed for FY 2005 – Dividend payout ratio was 60 % in FY2005 10 Highlights - Consolidated results –H1FY2006 • Sales growth of 19.6 % driven by – Strong growth in
Slide 6: Consolidated P&L – H1 FY 2006
11 Consolidated P&L – H1 FY 2006 12 Consolidated Sales breakup : H1 FY 2006 * 50 % of Asian PPG Industries sales are included 6
Slide 7: Standalone P&L : H1 FY2006
13 Asian Paints Consolidated Results • Standalone • Industrial Operations • International Operations 14 Standalone P&L : H1 FY2006 7
Slide 8: Paints : Decoratives India
15 Paints : Decoratives India • Demand for decorative paints has been good – South and East region registered very good growth • Excellent growth in all wall finish products – Impressive growth recorded by interior and exterior emulsions • Over 800 Colour Worlds installed in the first half • Impleme
Slide 9: Paints : Decoratives India
17 Paints : Decoratives India • Price of TiO2 has been stable in last four months • Prices of solvents have increased significantly • Prices of monomers, additives and vegetable oils have decreased in the last three months 18 Asian Paints Consolidated Results • Standalone • Industrial Operations • I
Slide 10: Industrial Operations
19 Industrial Operations • Sales for automotive JV has increased by 27.9% to Rs. 1174 million • Sales for powder coatings has increased by 36.2 % to Rs. 172 million – Industry has grown by 25% due to exports of automotive parts, increased demand for white goods and new applications in architectural
Slide 11: International Operations : H1 FY2006
21 International Operations : H1 FY2006 • Value sales increased by 11.0% to Rs. 2.5 billion – Value sales growth is 12.2 % after excluding divestments • Berger International’s revenue has increased by 5.9 % to Rs. 1.6 billion – BIL has reported a loss of Rs 18 million before tax and minority interes
Slide 12: Standalone Cash Flow
23 International Operations : Going ahead • Investments in International subsidiaries reviewed periodically and the Company will not hesitate to restructure its portfolio where required • Middle East offers great opportunities as huge investments are likely to be made in oil, gas and construction in
Slide 13: Key Ratios
25 Key Ratios Standalone Consolidated 26 Presentation structure • Results : Q2 – FY 2006 • Results : H1 - FY 2006 • Outlook and Risks : FY 2006 13
Slide 14: Environment – FY’2006
27 Environment – FY’2006 • India • GDP growth estimated at 7.5 % for FY06 • Cement dispatches and construction industry continue to perform well • Slowdown in the automotive industry – We are optimistic of this industry’s performance in the long run • Inflation still a cause for concern • Agricultur
Slide 15: Outlook and Risks – FY’2006
29 Outlook and Risks – FY’2006 • India • Paint Industry expected to grow by over 15% by value • In Decorative paints emphasis would continue to be to drive top - line growth • Pressure on margins may continue • Demand for industrial coatings will continue to be buoyant • International • Manage the p
Slide 16: Thank you...
Thank you... asianpaints 16