Growth Profitability and Financial Ratios for Asian Paints Ltd

Financials
2012-03 2013-03 2014-03 2015-03 2016-03 2017-03
Revenue INR Mil 96,322 109,587 126,356 140,597 153,858 151,400
Gross Margin % 38.2 40.9 41.6 43 46.3 44
Operating Income INR Mil 14,618 15,946 17,700 19,798 25,328 26,903
Operating Margin % 15.2 14.6 14 14.1 16.5 17.8
Net Income INR Mil 10,205 11,138 12,188 13,952 17,262 19,394
Earnings Per Share INR 10.3 11.61 12.71 14.54 18.19 20.02
Dividends INR 3.3 4 4.75 6 6.5 7.95
Payout Ratio % * 30.7 34.1 38.5 42.9 37.6 40.6
Shares Mil 959 959 959 959 959 959
Book Value Per Share * INR 26.85 28.65 40.7 47.24 55.89 73.06
Operating Cash Flow INR Mil 8,264 11,867 14,000 11,876 23,332 15,273
Cap Spending INR Mil -6,732 -6,438 -2,492 -4,538 -8,244 -6,841
Free Cash Flow INR Mil 1,532 5,430 11,507 7,339 15,089 8,432
Free Cash Flow Per Share * INR 6.31 1.6 5.66 12 7.65 15.73
Working Capital INR Mil 7,894 10,750 16,513 18,379 20,442 30,808

Key Ratios -> Profitability

Margins % of Sales 2012-03 2013-03 2014-03 2015-03 2016-03 2017-03
Revenue 100 100 100 100 100 100
COGS 61.76 59.11 58.36 57 53.67 56
Gross Margin 38.24 40.89 41.64 43 46.33 44
SG&A 14.94 5.09 5.44 5.68 6.29 4.59
R&D
Other 8.12 21.25 22.19 23.24 23.58 21.64
Operating Margin 15.18 14.55 14.01 14.08 16.46 17.77
Net Int Inc & Other -0.08 0.55 0.51 0.69 0.62 1.48
EBT Margin 15.1 15.1 14.52 14.77 17.08 19.25

Profitability 2012-03 2013-03 2014-03 2015-03 2016-03 2017-03

Tax Rate % 29.81 29.95 31.16 31.27 32.31 32.53
Net Margin % 10.26 10.16 9.65 9.92 11.22 12.81
Asset Turnover (Average) 1.84 1.73 1.7 1.66 1.61 1.34
Return on Assets % 18.85 17.56 16.44 16.46 18.12 17.19
Financial Leverage (Average) 2.15 2 1.99 1.88 1.81 1.63
Return on Equity % 40.06 36.33 32.84 31.77 33.36 29.37
Return on Invested Capital % 36.79 33.62 31.16 29.91 31.3 27.5
Interest Coverage 36.49 46.92 51.23 56.34 72.87 103.74

Key Ratios -> Growth

2012-03 2013-03 2014-03 2015-03 2016-03 2017-03
Revenue %
Year over Year 24.99 13.77 15.3 11.27 9.43 -1.6
3-Year Average 20.81 17.93 17.92 13.44 11.97 6.21
5-Year Average 21.29 20 18.26 16.05 14.83 9.47
10-Year Average 19.01 18.57 17.68 15.22
Operating Income %
Year over Year 18.71 9.08 11 11.85 27.93 6.22
3-Year Average 30.83 8.28 12.86 10.64 16.68 14.98
5-Year Average 26.34 19.07 22.08 9.53 15.51 12.97
10-Year Average 21.48 20.83 21.7 19.47
Net Income %
Year over Year 21.03 9.14 9.42 14.47 23.73 12.35
3-Year Average 34.5 8.01 13.07 10.98 15.72 16.75
5-Year Average 29.24 21.08 23.78 9.56 15.41 13.7
10-Year Average 23.5 22.64 23.46 21.22
EPS %
Year over Year 17.26 12.66 9.45 14.4 23.8 12.33
3-Year Average 35.45 10.05 13.08 12.15 15.73 16.74
5-Year Average 28.61 22.18 25.1 10.79 15.41 14.43
10-Year Average 23.73 23.13 23.32 21.31

Key Ratios -> Cash Flow

Cash Flow Ratios 2012-03 2013-03 2014-03 2015-03 2016-03 2017-03
Operating Cash Flow Growth % YOY 8.55 43.61 17.97 -15.17 96.46 -34.54
Free Cash Flow Growth % YOY -74.68 254.42 111.93 -36.23 105.59 -44.12
Cap Ex as a % of Sales 6.99 5.87 1.97 3.23 5.36 4.52
Free Cash Flow/Sales % 1.59 4.96 9.11 5.22 9.81 5.57
Free Cash Flow/Net Income 0.15 0.49 0.94 0.53 0.87 0.43

Key Ratios -> Financial Health

Balance Sheet Items (in %) 2012-03 2013-03 2014-03 2015-03 2016-03 2017-03
Cash & Short-Term Investments 10.59 13 18.17 15.78 19.51 20.73
Accounts Receivable 13.25 14.45 13.81 13.24 12.31 11.65
Inventory 27.12 26.96 25.75 25.34 20.35 21.15
Other Current Assets 9.42 4.61 5.17 5.73 5.61 2.56
Total Current Assets 60.38 59.01 62.9 60.09 57.78 56.09
Net PP&E 31.39 35.72 29.88 27.9 31.4 25.88
Intangibles 1.13 1.11 2.87 4.15 3.24 2.78
Other Long-Term Assets 7.1 4.16 4.35 7.87 7.58 15.25
Total Assets 100 100 100 100 100 100
Accounts Payable 22.52 21.89 22.62 18.06 16.32 15.96
Short-Term Debt 4.86 3.06 2.66 3.92 2.54 4.18
Taxes Payable 2.12 2.19 2.11 2.1 1.69
Accrued Liabilities
Other Short-Term Liabilities 20.73 17.16 16.22 16.57 17.79 10.42
Total Current Liabilities 48.1 44.23 43.69 40.67 38.75 32.25
Long-Term Debt 0.97 0.71 0.52 0.88 0.74 0.33
Other Long-Term Liabilities 3.21 4 3.96 3.62 3.6 4.3
Total Liabilities 52.28 48.94 48.17 45.17 43.09 36.88
Total Stockholders' Equity 47.72 51.06 51.83 54.83 56.91 63.12
Total Liabilities & Equity 100 100 100 100 100 100

Liquidity/Financial Health 2012-03 2013-03 2014-03 2015-03 2016-03 2017-03

Current Ratio 1.28 1.37 1.49 1.52 1.54 1.79
Quick Ratio 0.51 0.67 0.81 0.81 0.89 1.07
Financial Leverage 2.15 2 1.99 1.88 1.81 1.63
Debt/Equity 0.02 0.01 0.01 0.02 0.01 0.01

Key Ratios -> Efficiency Ratios

Efficiency 2012-03 2013-03 2014-03 2015-03 2016-03 2017-03
Days Sales Outstanding 25.9 29.35 30.2 29.73 28.8 32.48
Days Inventory 89.09 96.61 96.52 98.56 95.53 100.97
Payables Period 79.56 77.41 79.52 75.71 70.04 75.98
Cash Conversion Cycle 35.43 48.55 47.2 52.58 54.29 57.48
Receivables Turnover 14.09 12.44 12.08 12.28 12.67 11.24
Inventory Turnover 4.1 3.78 3.78 3.7 3.82 3.61
Fixed Assets Turnover 6.08 5.13 5.24 5.75 5.43 4.73
Asset Turnover 1.84 1.73 1.7 1.66 1.61 1.34
2018-03 2019-03 2020-03 2021-03 TTM
166,447 191,816 200,628 215,030 215,030
41.5 40.6 43 43.5 43.5
28,475 31,062 33,923 40,673 40,673
17.1 16.2 16.9 18.9 18.9
20,389 21,595 27,052 31,393 31,393
21.26 22.48 28.2 32.73 32.73
8.3 8.9 18.15 4.85 4.85
40.4 39.4 38.7 41.9 14.8
959 959 959 959 959
80.82 91.33 104.99 114.99 133.51
21,134 22,143 26,319 36,834 36,834
-14,259 -11,507 -4,136 -2,887 -2,887
6,875 10,634 22,182 33,946 33,946
8.79 7.17 20.11 23.36
24,630 26,051 31,997 61,007

2018-03 2019-03 2020-03 2021-03 TTM

100 100 100 100 100
58.51 59.41 57.04 56.54 56.54
41.49 40.59 42.96 43.46 43.46
4.36 4.45 5.05 3.8 3.8

20.02 19.95 21 20.75 20.75

17.11 16.19 16.91 18.92 18.92
1.33 1.07 1.2 1.1 1.1
18.44 17.26 18.11 20.02 20.02

2018-03 2019-03 2020-03 2021-03 TTM

33.92 33.19 23.52 25.5 25.5
12.25 11.26 13.48 14.6 14.6
1.27 1.3 1.26 1.18 1.18
15.56 14.67 17.01 17.19 17.19
1.64 1.65 1.59 1.59 1.59
25.47 24.09 27.53 27.37 27.37
23.82 22.7 25.55 25.11 25.11
90.49 65.92 36.51 47.98 47.98

2018-03 2019-03 2020-03 2021-03 Latest Qtr

9.94 15.24 4.59 7.18 43.56

 5.79 7.63 9.84 8.91
8.72 8.71 7.37 6.92
14.22 13.38 11.62 10.81

5.85 9.09 9.21 19.9 63.83

12.88 7.04 8.04 12.62
12.3 11.91 11.37 9.94
15.63 16.88 10.45 12.69

5.13 5.91 25.27 16.05

13.48 7.75 11.73 15.47
12.85 12.12 14.16 12.71
16.89 17.81 11.84 14.05

1.53 9.64 25.28 16.06 84.82

12.19 7.74 11.73 16.82
12.07 12.11 14.17 12.7
17.01 18.43 12.46 14.05

2018-03 2019-03 2020-03 2021-03 TTM

38.37 4.77 18.86 39.95
-18.47 54.7 108.58 53.04
8.57 6 2.06 1.34 1.34
4.13 5.54 11.06 15.79 15.79
0.34 0.49 0.82 1.08 1.08

2018-03 2019-03 2020-03 2021-03 Latest Qtr

11.81 11.48 9.54 23.37 23.37
12.56 12.18 11.11 12.78 12.78
19.29 20.11 20.98 18.65 18.65
6.51 4.98 5.29 4.24 4.24
50.16 48.74 46.92 59.04 59.04
32.82 34.9 36.06 27.02 27.02
4.45 3.8 3.64 2.63 2.63
12.56 12.56 13.38 11.3 11.3
100 100 100 100 100
16.61 16.16 13.8 17.03 17.03
3.75 3.97 2.13 1.67 1.67
1.89

10.83 12.75 11.88 11 11

33.08 32.87 27.81 29.71 29.71
0.21 0.12 0.12 0.07 0.07
4.21 4.78 7.76 6.02 6.02
37.5 37.77 35.69 35.8 35.8
 62.5 62.23 64.31 64.2 64.2
100 100 100 100 100

2018-03 2019-03 2020-03 2021-03 Latest Qtr

1.55 1.52 1.73 2.03 2.03
0.9 0.85 0.87 1.31 1.31
1.64 1.65 1.59 1.59 1.59
0.06 0.04 0.04

2018-03 2019-03 2020-03 2021-03 TTM

34.84 34.61 33.68 37.34 37.34
99.04 93.01 104.29 107.91 107.91
77.92 75.38 74.07 83.63 83.63
55.96 52.25 63.9 61.62 61.62
10.48 10.55 10.84 9.78 9.78
3.69 3.92 3.5 3.38 3.38
4.3 3.84 3.55 3.8 3.8
1.27 1.3 1.26 1.18 1.18