Asian Paints Ltd. · NSE:ASIANPAINT

Asian Paints — FY2000 Earnings Presentation

24 slides from Asian Paints's earnings presentation, 2000

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

    1 Asian Paints (India) Limited Analyst Presentation Annual Results : Financial year 1999-2000 Mr. Ashwin Dani Vice Chairman & Managing Director Asian Paints (India) Ltd

  2. Slide 2: Indian Economy: FY 2000

    2 Indian Economy: FY 2000 „ GDP growth at 6 per cent „ Industrial production turned buoyant „ Cement dispatches show good growth rates „ Passenger car sales were impressive „ High fiscal deficit „ Low inflation „ Low current account deficit „ High business confidence

  3. Slide 3: The Paint Market

    3 The Paint Market „ Paint demand buoyant across product segments „ Healthy growth rates for Decorative segment „ Improved performance by Industrial segment due to better industrial growth rates „ Phthalic and Penta segment subdued

  4. Slide 4: Announcement of Bonus Shares

    4 Announcement of Bonus Shares „ The Board has announced the issue of bonus shares in the ratio of 3:5 „ For 5 shares held by the shareholder, 3 bonus shares will be given on the Record Date „ The Record Date for determining the entitlement to bonus shares shall be announced in due course

  5. Slide 5: Financial Performance FY 2000

    5 Financial Performance FY 2000 (In Rs. Mn) FY 00 FY 99 Growth % Gross Sales 13416.4 11280.1 18.9 % Net Sales 10661.7 8947.4 19.2 % PBDIT(w/o OI) 1776.4 1239.3 43.3 % Interest 202.9 223.3 - 9.1% Depreciation 278.4 226.9 22.7 % Other income 135.8 219.7 - 38.2 % PBT 1430.9 1008.8 41.8% Tax 457.5 240.0

  6. Slide 6: Asian Paints in FY 2000

    6 Asian Paints in FY 2000 „ Volume growth of 23 % in Paints business „ Chemical business volumes grow by 12.3 % due to increased capacities in Phthalic „ Value growth of Paints business 18.1 % „ Chemical business registers 24.6 % growth in value sales

  7. Slide 7: Asian Paints in FY 2000

    7 Asian Paints in FY 2000 „ PBDIT(with OI) increases by 38 % to Rs. 1912.2 million „ PBDIT(without OI) increases by 43.3 % to Rs. 1776.4 million „ Operating profit margins increases to 16.7 % from 13.8 % „ PBT increases by 41.8 % to Rs 1430.9 million „ Net profit up by 26.6% to Rs. 973.4 million „ N

  8. Slide 8: Analysis

    8 Analysis „ Value growth is less than the volume growth on account of: „ Lower Excise Duty; reduction passed on „ Reduction in Selling Prices in March 1999 „ Absorption of a part of increase in raw material cost „ Impressive PBDIT growth due to better management of overheads „ High taxation rate du

  9. Slide 9: Important Ratios

    9 Important Ratios FY’00 FY’99 Change Net Sales /Total Cap. Emp. 2.00 1.72 0.29 PBDIT-OI/Net Sales 16.7% 13.8% 2.8% PBT-OI/ Net Sales 12.1% 8.8% 3.3% PAT/ Net Sales 9.1% 8.6% 0.5% PAT/ Total Cap. Emp 18.3% 14.7% 3.6% Debt Equity Ratio 0.49 0.71 -0.22 ROIC 19.9% 17.8% 2.1% (NOPAT/ Avg. Invested capit

  10. Slide 10: Important Ratios

    10 Important Ratios „ Impressive increase in operating profit margins „ Significant improvement in ROCE due to: „ Higher capital turnover ratio „ High PAT growth

  11. Slide 11: Decorative Business Unit

    11 Decorative Business Unit „ Sales volume are up by 24.5%. „ All product categories show good performance „ Colourworlds growth rates impressive „ 848 Colourworlds installed by March 2000 „ Focus areas: Rural, Exteriors show excellent performance

  12. Slide 12: Decorative Business Unit

    12 Decorative Business Unit „ Ace - Economy exterior emulsion launched all over India „ Excellent response „ Asian Woods PU launched „ Will be launched throughout the country in the current financial year

  13. Slide 13: Industrial Paints

    13 Industrial Paints „ Industrial business registers good growth rates „ CRP registers good volume growth „ Both in Project & Maintenance sectors „ JV Asian PPG Industries does well „ Excellent growth in OE sector „ High-end Refinishes introduced

  14. Slide 14: The Raw Material Scenario

    14 The Raw Material Scenario „ Raw material prices, especially petrochemicals, increased during the year. „ Prices of monomers have increased significantly „ All solvent prices have increased sharply „ Rutile price US$ 1900/MT from US$1800/MT „ Prices of linseed and soyabean oils have decreased over

  15. Slide 15: Major Initiatives: FY 2000

    15 Major Initiatives: FY 2000 „ Significant cost economies achieved through, „ Effective Sourcing „ Improvement of plant yields „ Better management of overheads „ Increased Colourworld installations „ Implementation of Supply Chain Planning Engine

  16. Slide 16: International Business Unit

    16 International Business Unit „ All overseas unit performed well „ Established Oman & Mauritius unit in FY 2000 „ Acquired controlling stake in the second largest paint company in Sri Lanka „ Asian Paints (International) Ltd. established in Mauritius

  17. Slide 17: Chemicals - Phthalic Anhydride

    17 Chemicals - Phthalic Anhydride „ Phthalic Anhydride price realisations at around Rs. 36 per Kg., up from Rs. 29 per Kg. in FY 99 „ Higher volumes on account of increased capacity from „ 18,000 tons in FY 1999 „ 22,000 tons in FY 2000 „ 24,000 tons in FY 2001

  18. Slide 18: Pentaerythritol

    18 Pentaerythritol „ Volume sales maintained at last year’s level „ Pressure on margins due to decline in prices

  19. Slide 19: Outlook

    19 Outlook „ Current Macroeconomic expectations - Negatives „ Increase in fiscal deficit „ Increase in inflation and interest rates „ Recent currency volatility

  20. Slide 20: Outlook

    20 Outlook „ Current Macroeconomic expectations - Positives „ Government disinvestment likely to increase „ Emphasis on reducing fiscal deficit by targeting subsidies etc. „ Limited impact of drought on the paint industry „ Prediction of a good monsoon augurs well for the paint industry

  21. Slide 21: Path Ahead

    21 Path Ahead „ Increased market share by Decorative India „ Colour World installations „ Better customer service with SCM solution, Helpline & New website „ Focus on Large User Business „ Focus on New market segments „ New product launches „ Rural initiatives „ Products at all price points

  22. Slide 22: Path Ahead

    22 Path Ahead „ IT initiatives „ Cost management initiatives „ Exploring opportunities in emerging economies „ Africa, „ Middle East Asia and „ Asia Pacific

  23. Slide 23: Capital Expenditure

    23 Capital Expenditure (Rs. Mn) FY 2000 FY 2001 Colourworld 270 300 Plant upgradation 210 250 IT initiatives* 120 280 Others 90 40 Total 690 870 * IT initiatives include Rs. 20.6 million of Y2K expenditure

  24. Slide 24: Thank You

    24 Thank You

Asian Paints (India) — FY2000 Earnings Presentation on 6ix