Asian Paints Ltd. · NSE:ASIANPAINT

Asian Paints — H1 FY2001 Earnings Presentation

29 slides from Asian Paints's earnings presentation, November 2000

  1. Slide 1: Asian Paints (India) Limited Analyst Presentation

    1 Asian Paints (India) Limited Analyst Presentation Results for six months ended September 30, 2000 Mr. Ashwin Dani Vice Chairman & Managing Director Asian Paints (India) Ltd

  2. Slide 2: Economic Environment

    2 Economic Environment „ GDP growth at 6 per cent „ Soaring crude oil prices „ Deceleration in Industrial production „ Cement sector witnessing a slowdown „ Passenger car sales have witnessed lower growth rates „ Depreciation of the rupee „ Low business confidence

  3. Slide 3: Raw Material Scenario for Paint Market

    3 Raw Material Scenario for Paint Market „ Rutile price has increased marginally to US$ 2000/MT from US$ 1950/MT „ Prices of all solvents have increased sharply on account of the increase in crude oil prices „ Prices of vegetable oils have decreased „ Price of Castor oil has fallen by around 20 % ov

  4. Slide 4: The Paint Industry

    4 The Paint Industry „ Advancement of the Diwali season „ Good demand for paint across product segments „ Decorative segment witnesses good growth rates „ Satisfactory performance by Industrial segment

  5. Slide 5: Financial Performance 1H FY 2001

    5 Financial Performance 1H FY 2001 (In lacs) 1H FY 01 1H FY 00 Grth % Gross Sales 75425 63648 18.5 % Net Sales 59768 50137 19.2% PBDIT(w/o OI) 9438 7902 19.4% Interest 1237 1208 2.4% Depreciation 1576 1358 16.1% Other income 676 474 42.6% PBT 7301 5810 25.7% Tax 2400 1859 29.1% PAT 4901 3951 24.0%

  6. Slide 6: Asian Paints in 1H FY 2001

    6 Asian Paints in 1H FY 2001 „ Net sales increases by 19.2 % „ Volume Sales register growth of 18 .7% „ PBT increases by 25.7 % to Rs 73.01crores „ Net profit up by 24.0 % to Rs. 49.01 crores

  7. Slide 7: Asian Paints in 1H FY 2001

    7 Asian Paints in 1H FY 2001 „ PBDIT(without OI) increases by 19.4 % to Rs. 94.38 crores „ PBDIT(with OI) increases by 20.7 % to Rs. 101.14 crores „ Operating profit margins increases to 16.9% from 16.7% „ Net profit margin at 8.2% compared to 7.9% in the previous year

  8. Slide 8: Important Ratios

    8 Important Ratios 1H FY’01 1H FY’00 EBITDA-OI/Net Sales 16.0% 15.8% EBIT / Net Sales 13.2% 13.1% EBT-OI/ Net Sales 11.1% 10.6% PAT/ Net Sales 7.1% 6.9%

  9. Slide 9: Financial Performance Q2 FY 2001

    9 Financial Performance Q2’FY 2001 (In lacs) Q2 FY 01 Q2 FY 00 Grth % Gross Sales 43179 34614 24.7% Net Sales 34809 27265 27.7% PBDIT 6038 4816 25. 4% Interest 724 628 15.3% Depreciation 781 678 15.2% Other income 373 182 104.9% PBT 4533 3510 29.1% Tax 1487 1124 33.1% PAT 3046 2386 27.7 %

  10. Slide 10: Performance of Decorative India

    10 Performance of Decorative India

  11. Slide 11: Decorative India

    11 Decorative India „ Sales volume increases by 22.9%. „ All product categories show impressive performance „ Colourworlds growth rates impressive „ Tally of Colourworlds installed by Sept’ 2000 is 1433 „ 600 ‘Colour Worlds’ installed between April - Sept’00

  12. Slide 12: Decorative India

    12 Decorative India „ Economy segment grows by 62 % „ New products perform very well „ Growth rates for new products around 50 % „ Ace - Economy exterior emulsion well received „ ‘Apex’ - Acrylic Exterior Emulsion paint has posted an impressive growth of 33 % „ Sale of Asian Wall Putty exceeds expec

  13. Slide 13: Recent Product Launches

    13 Recent Product Launches „ OPAL - the premium polyurethane wood finish makes a good beginning „ A new improved variant of ‘Apcolite Natural Wood Finish’ launched in Mumbai „ ‘Utsav enamel’ very well received „ Targeted at the rural populace „ Utsav Acrylic Distemper is performing well „ An interio

  14. Slide 14: Growth Business Unit (Industrial & Chemicals)

    14 Growth Business Unit (Industrial & Chemicals)

  15. Slide 15: Industrial Business

    15 Industrial Business „ Average performance by Industrial Business „ Performance in the CRP segment is upto expectation „ Powder coatings segment post impressive growth „ Asian PPG Industries records growth rate of 44 % for 1H FY 2001 „ OEM segment posts 47 % growth „ ‘Deltron’ - the high end refin

  16. Slide 16: Chemicals - Phthalic Anhydride & Penta

    16 Chemicals - Phthalic Anhydride & Penta „ Chemicals business post value growth of 8% „ Phthalic Anhydride „ Phthalic Anhydride price realisations at Rs. 39.05 per kg., up from Rs. 36.47 / kg. in Mar’00 „ Margins were maintained „ Prices of PAN remained depressed during first half „ Price of orthox

  17. Slide 17: International Operations

    17 International Operations

  18. Slide 18: International Business Unit

    18 International Business Unit „ All nine overseas unit are performing as per our expectations „ Delmege Forsyth & Co (Paints) Limited rechristened to Asian Paints (Lanka) Limited „ Introduction of Asian Paints brands begin in the Sri Lankan market with the launch of Automotive refinishes „ Unit per

  19. Slide 19: Major Initiatives: 1H FY 2001

    19 Major Initiatives: 1H FY 2001

  20. Slide 20: Sales & Marketing – Decorative India

    20 Sales & Marketing – Decorative India „ Asian Paints ‘Helpline’ continues to receive an enthusiastic response „ The information powerhouse to the consumer „ A step to bring the consumer closer to the company „ 90 % of the calls are converted to sales for the company „ Asian Paints ‘Painting’ Solut

  21. Slide 21: Supply Chain Management / Planning

    21 Supply Chain Management / Planning „ Completed implementation of solution from i2 Technologies for improved SCM: „ Demand Management „ Improved consensus based forecasting with monthly revisions using sophisticated genetic algorithms „ Master Planning „ Constraint based planning for distribution

  22. Slide 22: Outlook for the Balance Period

    22 Outlook for the Balance Period „ Increase in raw material prices „ Increased freight cost „ Currency Volatility „ Interest rate uncertainty

  23. Slide 23: Goals for the Balance Fiscal

    23 Goals for the Balance Fiscal „ Increase market share „ Maintain margins

  24. Slide 24: Initiatives for Balance Fiscal

    24 Initiatives for Balance Fiscal

  25. Slide 25: Sales & Marketing – Decorative India

    25 Sales & Marketing – Decorative India „ 2100 Colour World installations by year end „ Begin the rural market onslaught „ Rural initiative has moved into high gear „ ‘Utsav’ to be the flagship for increased penetration across rural India „ LUB Initiatives „ Continued aggression in launching new pro

  26. Slide 26: Cost Management

    26 Cost Management „ Achieve further economies of scale „ Better management of overheads „ Improvement of plant yields „ Improved sourcing

  27. Slide 27: IT initiatives

    27 IT initiatives „ Revamp of Existing Transaction Systems „ Implementation of ERP (SAP R/3 and Business Warehouse) for: „ Improved financial reporting and analysis „ To complement the SCM solution from i2 Technologies „ Online visibility to transaction data for improved planning and enhance ability

  28. Slide 28: International

    28 International „ Implementation of a unified brand portfolio and identity across all international units „ Implementation of Retailing and DIY initiatives with ‘Colour World’ as the leading retailing tool

  29. Slide 29: Thank You

    29 Thank You

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