FY 2007 – Annual Results of Asian paints:
Presentation structure
• Results: Q4 – FY 2007
• Results: FY 2007
• Outlook: FY 2008
Highlights: Q4 – FY2007
Consolidated Net sales and operating income. Increased by 25.4 % to Rs. 9,589 million. Good growth witnessed by all business units. Volume growth has been impressive for the Quarter.
-Net Profit has risen by 43 % to Rs. 666 mn.
– Good performance by the Decorative Business Unit
– Improved performance by International operations
• Material costs have risen during the quarter
• Operating margins have improved due toimpressive volume growth
Consolidated P&L – Q4 FY07:
Standalone P&L – Q4 FY07:
EOI (Extra Ordinary Item) – Provision for diminution in value of Investment.
Presentation structure
• Results: Q4 – FY 2007
• Results: FY 2007
• Outlook: FY 2008
7. Highlights - Consolidated results –FY2007:
• Paint volumes for the year including international increased by 18.7 % to 481,976 KL.
– All three business units registered in excess of 15% volume growth.
• Value Sales have grown by 21.5 % driven by
– Good growth registered by Paints-India business and theMiddle East region
• Material costs as a percentage to sales have gone up marginally
• HR costs have risen by 17.4 % to Rs. 2621 mn
• However operating margins have been maintained due to control on other overheads.
8 .Consolidated P&L –FY 2007
9 .50 % of Asian PPG Industries sales are included
Consolidated Sales breakup:
FY 2007 & Q4 FY 07
10 Asian Paints Consolidated Results FY2007
• Asian Paints Standalone Results
• Decorative Business – India
• Industrial Operations – India
• International Operations
11 Asian Paints - Standalone P&L :
FY2007
EOI (Extra Ordinary Item) – Provision for diminution in value of Investment.
12 • Net Sales grew by 21.7 % due to strong growth by all segments of the paints business
• Net profit has increased by 45.7% to Rs. 2720 mn
– Due to the performance of the Decorative – India business
– In FY’2006 results, Rs. 336 million was provided towards diminution in the value of investments in overseas units
– Adjusting for EOI, Net profit has risen by 23.5 %
• Chemicals business registered revenue growth of 12.9% to Rs. 961.5 mn (adjusting for inter segment revenue)
– PBIT for this business increased by 105.9 % to Rs. 246.3million
Asian Paints - Standalone P&L :
FY2007
Environment – FY2007
• India
• GDP growth at 9.0 % for FY07
– Estimated at 9.2 % for FY 08 aided by a surge in industry
and services sector
– Higher growth than FY07 predicted for services and
industrial sector
• Inflation and rising interest rates are a cause for
concern
• Manufacturing, Capital goods, consumer goods,construction, cement, automobiles – all have
registered good growth for FY2007
14 .Paint Industry – India : FY 2007
• Paints industry estimated between Rs. 112 and Rs.
115 billion for FY2007
– Value growth is estimated at around 18% in FY2007
• Decorative paints estimated to have grown by
around 19 % in value
• Industrial Paints is estimated to have grown by
around 17 % in value
• Demand conditions have been good in most
segments of the paint industry
• Input costs continued its upward trend during the year putting pressure on operating margins of paint companies.
15.Asian Paints Consolidated Results FY2007
• Asian Paints Standalone Results
• Decorative Business – India
• Industrial Operations – India
• International Operations
16. Demand for decorative paints was good nearly throughout the year and in
most parts of the country.
– While Southern region of the country continues to do very
well, the exceptions were Delhi and North East region
• All segments for Decorative India registered
double digit growth.
• Excellent growth in all wall finish products
– Impressive growth recorded by interior and exterior
emulsions
• 8500 Colour Worlds now installed in the country
– Penetration into small towns continues.
Paints : Decoratives India
17. Pricing FY 2006
– Four price increases effected during the year.
– Overall prince increase in the year was around 4.25%
– All price increases have been absorbed well by the market
• New Products
– Royale Play range expanded
– Luxury Ultra Gloss enamel launched in many markets
• Colour Next 2007 launched
– The company is beginning to be recognised as an authority in
forecasting colour trends.
18.Paints : Decoratives India
• Asian Paints Home Solutions
– Added 2 cities in FY2007 i.e. Jaipur and Baroda
– APHS is now present in 12 cities in the country
• Manufacturing facility
– Ankleshwar plant has received environmental
clearance for 100,000 kl from 80,000 kl.
19. Paints : Decoratives India
• Price of TiO2 have been fairly stable during the year
• Prices of raw materials increased sharply in 2nd and 3rd
quarter in FY 2007
– Major increases were in Xylene, Phthalic Anhydride and vegetableoil.
• Prices of solvents have eased in Q4’FY07 due to lower crude oil prices
Presentation structure
• Results: Q4 – FY 2007
• Results: FY 2007
• Outlook: FY 2008
Highlights: Q4 – FY2007
Consolidated Net sales and operating income. Increased by 25.4 % to Rs. 9,589 million. Good growth witnessed by all business units. Volume growth has been impressive for the Quarter.
-Net Profit has risen by 43 % to Rs. 666 mn.
– Good performance by the Decorative Business Unit
– Improved performance by International operations
• Material costs have risen during the quarter
• Operating margins have improved due toimpressive volume growth
Consolidated P&L – Q4 FY07:
Standalone P&L – Q4 FY07:
EOI (Extra Ordinary Item) – Provision for diminution in value of Investment.
Presentation structure
• Results: Q4 – FY 2007
• Results: FY 2007
• Outlook: FY 2008
7. Highlights - Consolidated results –FY2007:
• Paint volumes for the year including international increased by 18.7 % to 481,976 KL.
– All three business units registered in excess of 15% volume growth.
• Value Sales have grown by 21.5 % driven by
– Good growth registered by Paints-India business and theMiddle East region
• Material costs as a percentage to sales have gone up marginally
• HR costs have risen by 17.4 % to Rs. 2621 mn
• However operating margins have been maintained due to control on other overheads.
8 .Consolidated P&L –FY 2007
9 .50 % of Asian PPG Industries sales are included
Consolidated Sales breakup:
FY 2007 & Q4 FY 07
10 Asian Paints Consolidated Results FY2007
• Asian Paints Standalone Results
• Decorative Business – India
• Industrial Operations – India
• International Operations
11 Asian Paints - Standalone P&L :
FY2007
EOI (Extra Ordinary Item) – Provision for diminution in value of Investment.
12 • Net Sales grew by 21.7 % due to strong growth by all segments of the paints business
• Net profit has increased by 45.7% to Rs. 2720 mn
– Due to the performance of the Decorative – India business
– In FY’2006 results, Rs. 336 million was provided towards diminution in the value of investments in overseas units
– Adjusting for EOI, Net profit has risen by 23.5 %
• Chemicals business registered revenue growth of 12.9% to Rs. 961.5 mn (adjusting for inter segment revenue)
– PBIT for this business increased by 105.9 % to Rs. 246.3million
Asian Paints - Standalone P&L :
FY2007
Environment – FY2007
• India
• GDP growth at 9.0 % for FY07
– Estimated at 9.2 % for FY 08 aided by a surge in industry
and services sector
– Higher growth than FY07 predicted for services and
industrial sector
• Inflation and rising interest rates are a cause for
concern
• Manufacturing, Capital goods, consumer goods,construction, cement, automobiles – all have
registered good growth for FY2007
14 .Paint Industry – India : FY 2007
• Paints industry estimated between Rs. 112 and Rs.
115 billion for FY2007
– Value growth is estimated at around 18% in FY2007
• Decorative paints estimated to have grown by
around 19 % in value
• Industrial Paints is estimated to have grown by
around 17 % in value
• Demand conditions have been good in most
segments of the paint industry
• Input costs continued its upward trend during the year putting pressure on operating margins of paint companies.
15.Asian Paints Consolidated Results FY2007
• Asian Paints Standalone Results
• Decorative Business – India
• Industrial Operations – India
• International Operations
16. Demand for decorative paints was good nearly throughout the year and in
most parts of the country.
– While Southern region of the country continues to do very
well, the exceptions were Delhi and North East region
• All segments for Decorative India registered
double digit growth.
• Excellent growth in all wall finish products
– Impressive growth recorded by interior and exterior
emulsions
• 8500 Colour Worlds now installed in the country
– Penetration into small towns continues.
Paints : Decoratives India
17. Pricing FY 2006
– Four price increases effected during the year.
– Overall prince increase in the year was around 4.25%
– All price increases have been absorbed well by the market
• New Products
– Royale Play range expanded
– Luxury Ultra Gloss enamel launched in many markets
• Colour Next 2007 launched
– The company is beginning to be recognised as an authority in
forecasting colour trends.
18.Paints : Decoratives India
• Asian Paints Home Solutions
– Added 2 cities in FY2007 i.e. Jaipur and Baroda
– APHS is now present in 12 cities in the country
• Manufacturing facility
– Ankleshwar plant has received environmental
clearance for 100,000 kl from 80,000 kl.
19. Paints : Decoratives India
• Price of TiO2 have been fairly stable during the year
• Prices of raw materials increased sharply in 2nd and 3rd
quarter in FY 2007
– Major increases were in Xylene, Phthalic Anhydride and vegetableoil.
• Prices of solvents have eased in Q4’FY07 due to lower crude oil prices