ASIAN PAINTS

(all figures are in INR cr except stated otherwise)

Financial year end: 31 March

CONTENT
Asian Paints Limited is an Indian multinational paint company
1. Overview headquartered in Mumbai, Maharashtra. The company is engaged in
2. Financials the business of manufacturing, selling and distribution of paints,
coatings, products related to home decor, bath fittings and providing
3. Drivers of related services.
4. Schedules Company name ASIAN PAINTS LTD
5. DCF Ticker ASIAN PAINT.BO
6. Beta Stock Exchange NSE & BSE
7. Relative Valuation Share price as of last close ( 1,530.0)
8. Output Latest closing share price date 5/13/2020
Latest fiscal year end date 3/31/2019
No. of days in the accounting year 365
ASIAN PAINTS FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
(all figures are in INR cr except stated otherwise) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Financial year end: 31 March Actual Actual Actual Actual Actual Estimate Estimate Estimate

Key Summary

Particulars

Revenue ( 13,228.8) ( 13,581.6) ( 14,660.6) ( 14,837.1) ( 16,670.6) ( 17,513.9) ( 15,806.4) ( 18,129.4)

EBITDA - Reported ( 2,197.3) ( 2,726.4) ( 2,971.0) ( 3,198.0) ( 3,586.8) ( 3,472.0) ( 3,030.7) ( 2,903.2)
Margin% 16.6% 20.1% 20.3% 21.6% 21.5% 19.8% 19.2% 16.0%
EBIT - calculated ( 1,974.2) ( 2,491.9) ( 2,675.6) ( 2,886.9) ( 3,204.6) ( 2,994.9) ( 2,464.5) ( 2,274.8)
Margin% 14.9% 18.3% 18.3% 19.5% 19.2% 17.1% 15.6% 12.5%
EBT - reported ( 1,933.6) ( 2,403.1) ( 2,656.7) ( 2,865.8) ( 3,174.6) ( 2,967.4) ( 2,434.0) ( 2,241.4)
Margin% 14.6% 17.7% 18.1% 19.3% 19.0% 16.9% 15.4% 12.4%
FFO ( 2,076.7) ( 2,576.7) ( 2,809.2) ( 3,081.5) ( 3,446.8) ( 3,477.7) ( 3,001.9) ( 2,873.1)
Interest Expense ( 27.1) ( 23.4) ( 18.9) ( 21.1) ( 30.0) ( 27.5) ( 30.4) ( 33.4)
Capex ( 336.3) ( 686.7) ( 611.5) ( 1,358.3) ( 1,067.3) ( 904.8) ( 700.0) ( 802.9)
FCF ( 887.7) ( 1,432.4) ( 990.7) ( 904.0) ( 1,280.7) ( 1,856.7) ( 1,953.9) ( 1,162.5)

Credit Metrics

EBITDA/Interest expense 81.0x 116.5x 157.5x 151.9x 119.5x 126.3x 99.6x 87.0x
(EBITDA-Capex)/Interest expense 68.6x 87.2x 125.1x 87.4x 84.0x 93.4x 76.6x 62.9x
Gross Debt/EBITDA 0.0x 0.0x 0.0x 0.0x 0.2x 0.2x 0.2x 0.2x
Net Debt/EBITDA -0.3x -0.3x -0.4x -0.4x -0.2x -0.4x -1.0x -1.1x
Gross Debt/Equity 0.0x 0.0x 0.0x 0.0x 0.1x 0.1x 0.1x 0.1x
Net Debt/Equity 24.7x 31.4x 32.3x 127.6x 2.3x 2.8x 5.5x 5.5x
FFO/Net Debt 96% 97% 97% 99% 57% 64% 82% 82%

Equity ( 5,069.9) ( 5,925.7) ( 7,094.8) ( 7,798.2) ( 8,843.0) ( 10,002.6) ( 11,371.7) ( 12,212.2)

Total Debt ( 32.1) ( 29.3) ( 37.2) ( 9.9) ( 614.3) ( 693.3) ( 693.3) ( 693.3)
Cash & Marketable Securities ( 792.8) ( 919.8) ( 1,200.6) ( 1,259.0) ( 1,412.5) ( 1,930.5) ( 3,778.6) ( 3,820.1)
Total Net Debt ( (760.7) ( (890.6) ( (1,163.4) ( (1,249.2) ( (798.2) ( (1,237.2) ( (3,085.3) ( (3,126.8)

Reported

Debtors Turnover Ratio ( 13.27) ( 13.76)

Inventory Turnover Ratio (based on COGS) ( 3.65) ( 3.95)
Interest Coverage Ratio ( 137.00) ( 107.00)
Current Ratio ( 1.62) ( 1.63)
Debt Equity Ratio ( 0.00) ( 0.00)
Operating Margin Ratio ( 0.23) ( 0.22)
Net Profit Margin ( 0.13) ( 0.13)
Return on Net Worth (RONW) ( 0.25) ( 0.26)
Return on Capital Employed 49.90% 45.00% 40.90% 38.70% 38.30%

Calculated

Debtors Turnover Ratio 18.1x 17.9x 14.7x 13.0x 13.4x 13.4x 9.1x 12.2x
Inventory Turnover Ratio 3.6x 4.0x 3.4x 3.6x 3.7x 4.1x 2.4x 3.0x
Interest Coverage Ratio 72.8x 106.5x 141.9x 137.1x 106.8x 108.9x 81.0x 68.2x
Current Ratio 1.8x 1.8x 1.9x 1.6x 1.6x 1.7x 1.6x 1.9x
Debt Equity Ratio 0.0x 0.0x 0.0x 0.0x 0.1x 0.1x 0.1x 0.1x
EBITDA Margin Ratio 16.61% 20.07% 20.27% 21.55% 21.52% 19.82% 19.17% 16.01%
Net Profit Margin 10.03% 11.95% 12.29% 12.77% 12.81% 12.71% 11.55% 9.27%
Return on Net Worth (RONW) 26.18% 27.39% 25.40% 24.30% 24.14% 22.25% 16.05% 13.77%

Segmental Breakup

Segment Revenue from Operations Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Paints NA ( 13,213.1) ( 14,210.1) ( 14,397.9) ( 16,189.7)
% of Total NA 99.1% 99.0% 98.9% 98.8%
Home Improvement NA ( 119.0) ( 150.3) ( 161.7) ( 202.1)
% of Total NA 0.9% 1.0% 1.1% 1.2%
Total Revenue from operations ( 13,042.0) ( 13,332.2) ( 14,360.4) ( 14,559.6) ( 16,391.8)

Revenue from International Operations Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Asia 31.0% 27.9% 31.2% 49.0% 48.0%
Africa 1.6% 21.0% 20.0%
54.7% 51.8%
Middle East 48.6% 24.0% 26.0%
South Pacific 7.0% 6.4% 6.6% 6.0% 6.0%
Carribean 11.8% 11.0% 10.4% ( -  ) ( -  )
Revenue from External Customers Mar-15 Mar-16 Mar-17 Mar-18 Mar-19
India NA ( 13,283.1) ( 14,296.7) ( 14,485.2) ( 16,313.4)
Outside India NA ( 49.1) ( 63.7) ( 74.4) ( 78.4)
Total Revenue ( -  ) ( 13,332.2) ( 14,360.4) ( 14,559.6) ( 16,391.8)

Segment Assets Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Paints ( 5,107.7) ( 5,536.2) ( 6,659.7) ( 8,158.2) ( 9,807.4)
% of Total 98.2% 98.4% 98.3% 98.2% 98.2%
Home Improvement ( 93.6) ( 90.1) ( 113.0) ( 151.7) ( 174.9)
% of Total 1.8% 1.6% 1.7% 1.8% 1.8%
Total Segment Assets ( 5,201.3) ( 5,626.4) ( 6,772.7) ( 8,309.9) ( 9,982.3)

Un-allocable Assets ( 2,424.7) ( 3,098.6) ( 3,585.4) ( 3,278.0) ( 3,700.6)

Total ( 7,626.0) ( 8,725.0) ( 10,358.0) ( 11,587.9) ( 13,682.9)

Segment Liabilities Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Paints ( 2,126.7) ( 2,342.5) ( 2,752.6) ( 3,313.9) ( 4,148.6)
% of Total 98.7% 98.8% 98.0% 98.5% 98.1%
Home Improvement ( 28.2) ( 29.3) ( 55.0) ( 50.5) ( 78.3)
% of Total 1.3% 1.2% 2.0% 1.5% 1.9%
Total Segment Assets ( 2,154.9) ( 2,371.8) ( 2,807.6) ( 3,364.3) ( 4,226.9)

Un-allocable Assets ( 401.2) ( 427.5) ( 455.7) ( 425.4) ( 613.0)

Total ( 2,556.1) ( 2,799.2) ( 3,263.3) ( 3,789.8) ( 4,839.9)

Capital Expenditure Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Paints ( 209.2) ( 807.8) ( 342.6) ( 1,388.8) ( 1,203.3)
% of Total 81.3% 99.9% 99.6% 99.8% 99.7%
Home Improvement ( 48.1) ( 0.7) ( 1.5) ( 2.4) ( 3.7)
% of Total 18.7% 0.1% 0.4% 0.2% 0.3%
Total Capital Expenditure ( 257.3) ( 808.5) ( 344.0) ( 1,391.2) ( 1,207.0)

Un-allocable Assets ( 29.1) ( 43.5) ( 55.1) ( 68.1) ( 65.8)

Total ( 286.5) ( 852.0) ( 399.1) ( 1,459.3) ( 1,272.8)

Industry Distribution - March 2019

In INR cr. Organised Unorganised Estimated Size

Paint Industry 75.0% 35.0% ( (INR Cr.)
50,000.0)
Decorative Paint ( -  ) ( -  ) ( 37,500.0)
Industrial Paint ( -  ) ( -  ) ( 12,500.0)

Kitchen Solution 8.0% 92.0% ( 15,000.0)

Harware ( -  ) ( -  ) ( 6,000.0)
Wooden Cabinets ( -  ) ( -  ) ( 6,000.0)
Appliances and accessories ( -  ) ( -  ) ( 1,000.0)

Bath Fittings 60.0% 40.0% ( -  )

ASIAN PAINTS FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
(all figures are in INR cr except stated otherwise) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Financial year end: 31 March Actual Actual Actual Actual Actual Estimate Estimate Estimate

Standalone
Income Statement
Revenue from Operations
Revenue from Sale of Products (Including excise duty) ( 12,868.9) ( 13,132.3) ( 14,154.5) ( 14,316.1) ( 16,196.9) ( 17,006.7) ( 15,316.6) ( 17,624.1)
Revenue from Sale of Services ( 9.9) ( 12.6) ( 7.6) ( 13.0) ( 12.6) ( 15.7) ( 7.9) ( 10.7)
Other Operating Revenue ( 163.2) ( 187.2) ( 198.3) ( 230.4) ( 182.3) ( 191.5) ( 181.9) ( 194.6)
Total Revenue from Operations ( 13,042.0) ( 13,332.2) ( 14,360.4) ( 14,559.6) ( 16,391.8) ( 17,213.9) ( 15,506.4) ( 17,829.4)
Other Income ( 186.8) ( 249.4) ( 300.2) ( 277.5) ( 278.8) ( 300.0) ( 300.0) ( 300.0)
Total Income ( 13,228.8) ( 13,581.6) ( 14,660.6) ( 14,837.1) ( 16,670.6) ( 17,513.9) ( 15,806.4) ( 18,129.4)

Expenses
Cost of Materials Consumed ( 6,191.7) ( 5,865.9) ( 6,737.5) ( 7,100.2) ( 8,647.8) ( 9,208.9) ( 9,612.8) ( 10,589.4) ( -  )
Purchase of Stock-in-trade ( 380.6) ( 524.4) ( 646.5) ( 742.6) ( 1,010.7) ( 1,226.0) ( 1,106.4) ( 1,269.1)
Changes in Inventories of Finished goods, Stock-in-Trade and Work-in-Progress ( (132.4) ( 194.5) ( (515.6) ( 154.1) ( (247.9) ( 30.9) ( (1,146.9) ( 252.0)
Excise Duty ( 1,393.1) ( 1,501.9) ( 1,713.3) ( 391.7) ( -  ) ( -  ) ( -  ) ( -  )
Employee Benefits Expense ( 606.9) ( 666.8) ( 742.8) ( 791.1) ( 902.8) ( 894.5) ( 673.8) ( 720.7)
Other Expenses ( 2,591.5) ( 2,101.7) ( 2,365.0) ( 2,459.4) ( 2,770.4) ( 2,681.6) ( 2,529.6) ( 2,395.1)
Total Expenses ( 11,031.4) ( 10,855.3) ( 11,689.6) ( 11,639.1) ( 13,083.8) ( 14,041.8) ( 12,775.7) ( 15,226.2)

Earning before Interest, tax, depreciation and amortization (EBITDA) ( 2,197.3) ( 2,726.4) ( 2,971.0) ( 3,198.0) ( 3,586.8) ( 3,472.0) ( 3,030.7) ( 2,903.2)

Finance Cost ( 27.1) ( 23.4) ( 18.9) ( 21.1) ( 30.0) ( 27.5) ( 30.4) ( 33.4)
Depreciation, Amortisation and Impairment Expense ( 223.1) ( 234.5) ( 295.4) ( 311.1) ( 382.2) ( 477.1) ( 566.2) ( 628.4)
Profit Before Exceptional items and Tax ( 1,947.1) ( 2,468.5) ( 2,656.7) ( 2,865.8) ( 3,174.6) ( 2,967.4) ( 2,434.0) ( 2,241.4)

Exceptional items ( 13.5) ( 65.4) ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
Profit Before Tax ( 1,933.6) ( 2,403.1) ( 2,656.7) ( 2,865.8) ( 3,174.6) ( 2,967.4) ( 2,434.0) ( 2,241.4)

Tax Expense
(1) Current Tax ( 616.4) ( 743.7) ( 817.3) ( 968.9) ( 881.6) ( 741.9) ( 608.5) ( 560.4)
(2) (Excess) Tax provision for earlier years ( (1.0) ( (3.3) ( (3.6) ( (0.4) ( (2.2) ( -  ) ( -  ) ( -  )
(3) Deferred Tax ( (9.3) ( 39.9) ( 41.3) ( 2.6) ( 160.3) ( -  ) ( -  ) ( -  )
Total Tax Expense ( 606.2) ( 780.3) ( 855.0) ( 971.0) ( 1,039.8) ( 741.9) ( 608.5) ( 560.4)

Profit After Tax ( 1,327.4) ( 1,622.8) ( 1,801.7) ( 1,894.8) ( 2,134.8) ( 2,225.6) ( 1,825.5) ( 1,681.1)

Balance Sheet
ASSETS
Non-Current Assets
Property, Plant and Equipment ( 1,886.4) ( 2,533.0) ( 2,512.0) ( 2,477.4) ( 4,430.6) ( 4,825.2) ( 4,991.7) ( 5,200.8)
Right of use assets ( -  ) ( -  ) ( -  ) ( -  ) ( 700.6) ( 761.3) [1] ( 761.3) ( 761.3)
Capital Work-in-Progress ( 139.5) ( 92.8) ( 219.8) ( 1,391.8) ( 179.3) ( 147.8) [2] ( 147.8) ( 147.8)
Goodwill ( 35.4) ( 35.4) ( 35.4) ( 35.4) ( 35.4) ( -  ) ( -  ) ( -  )
Other Intangible Assets ( 43.7) ( 60.7) ( 57.3) ( 55.7) ( 54.6) ( 85.1) ( 61.2) ( 39.9)
Investments in Subsidiaries and Associate ( -  ) ( -  ) ( -  ) ( 830.4) ( 830.4) ( 1,210.2) [3] ( 1,210.2) ( 1,210.2)
Financial Assets
Investments ( 1,118.5) ( 1,319.6) ( 1,598.2) ( 717.0) ( 987.0) ( 962.7) [4] ( 962.7) ( 962.7)
Loans ( 45.3) ( 61.1) ( 70.3) ( 79.1) ( 76.0) ( 69.1) [5] ( 69.1) ( 69.1)
Other Financial Assets ( 17.1) ( 30.5) ( 198.1) ( 144.8) ( 220.7) ( 169.0) [6] ( 169.0) ( 169.0)
Current Tax Assets (Net) ( 16.2) ( 15.2) ( 36.5) ( 49.5) ( 81.5) ( 81.4) [7] ( 81.4) ( 81.4)
Other Non-Current Assets ( 148.1) ( 35.0) ( 200.4) ( 305.8) ( 33.5) ( 45.3) [8] ( 45.3) ( 45.3)
Total Non-Current Assets ( 3,450.2) ( 4,183.2) ( 4,927.8) ( 6,086.8) ( 7,629.5) ( 8,357.1) ( 8,499.7) ( 8,687.4)

Current Assets
Inventories ( 1,802.2) ( 1,610.1) ( 2,194.1) ( 2,178.4) ( 2,585.1) ( 2,573.0) ( 4,405.2) ( 3,898.7)
Financial Assets
Investments ( 1,127.4) ( 1,477.0) ( 1,315.4) ( 1,030.0) ( 1,146.6) ( 659.1) [9] ( 659.1) ( 659.1)
Trade Receivables ( 729.6) ( 759.1) ( 994.6) ( 1,138.2) ( 1,245.0) ( 1,307.9) ( 1,732.2) ( 1,490.1)
Cash and Cash Equivalents ( 54.6) ( 76.8) ( 62.0) ( 106.7) ( 98.3) ( 622.6) ( 2,046.4) ( 2,330.0)
Other Balances with Banks ( 8.6) ( 84.0) ( 143.9) ( 14.1) ( 69.2) ( -  ) ( -  ) ( -  )
Loans ( 11.7) ( 9.7) ( 13.6) ( 12.2) ( 14.0) ( 14.5) [10] ( 13.1) ( 15.0)
Other Financial Assets ( 231.3) ( 306.3) ( 474.1) ( 627.2) ( 567.6) ( 891.2) [11] ( 804.3) ( 922.5)
Assets classified as Held for Sale ( 4.9) ( 1.0) ( 0.6) ( 0.9) ( -  ) ( -  ) ( -  ) ( -  )
Other Current Assets ( 205.6) ( 217.9) ( 232.0) ( 393.3) ( 327.5) ( 311.7) [12] ( 281.3) ( 322.7)
Current Assets ( 4,175.9) ( 4,541.8) ( 5,430.2) ( 5,501.1) ( 6,053.4) ( 6,380.0) ( 9,941.6) ( 9,638.1)

Total Assets ( 7,626.0) ( 8,725.0) ( 10,358.0) ( 11,587.9) ( 13,682.9) ( 14,737.1) ( 18,441.2) ( 18,325.5)

EQUITIES AND LIABILITES

Equity
Equity Share Capital ( 95.9) ( 95.9) ( 95.9) ( 95.9) ( 95.9) ( 95.9) ( 95.9) ( 95.9)
Other Equity ( 4,974.0) ( 5,829.8) ( 6,998.8) ( 7,702.2) ( 8,747.0) ( 9,906.6) ( 11,275.8) ( 12,116.3)
Total Equity ( 5,069.9) ( 5,925.7) ( 7,094.8) ( 7,798.2) ( 8,843.0) ( 10,002.6) ( 11,371.7) ( 12,212.2)

Liabilites
Non-Current Liabilities
Financial Liabilities
Borrowings ( 32.1) ( 29.3) ( 10.4) ( 9.9) ( 10.9) ( 16.3) [13] ( 16.3) ( 16.3)
Lease Liabilities ( -  ) ( -  ) ( -  ) ( -  ) ( 473.9) ( 537.8) [14] ( 537.8) ( 537.8)
Other Financial Liabilities ( -  ) ( 1.7) ( 2.3) ( 0.7) ( 1.4) ( 0.1) [15] ( 0.1) ( 0.1)
Provisions ( 85.3) ( 94.2) ( 109.8) ( 107.4) ( 118.5) ( 126.3) [16] ( 84.2) ( 84.2)
Deferred Tax Liabilities (Net) ( 176.7) ( 217.2) ( 261.2) ( 270.3) ( 392.4) ( 285.0) [17] ( 285.0) ( 285.0)
Other Non-Current Liabilities ( -  ) ( 1.8) ( 3.7) ( 2.6) ( 1.5) ( 3.2) [18] ( 3.2) ( 3.2)
Total Non-Current Liabilities ( 294.1) ( 344.2) ( 387.4) ( 390.8) ( 998.5) ( 968.7) ( 926.6) ( 926.6)

Current Liabilities
Financial Liabilities
Borrowings ( -  ) ( -  ) ( 26.8) ( -  ) ( 4.4) ( -  ) [19] ( -  ) ( -  )
Lease Liabilities ( -  ) ( -  ) ( -  ) ( -  ) ( 125.2) ( 139.2) [20] ( 139.2) ( 139.2)
Trade Payables (Including Acceptances)
Total Outstanding dues of Micro Enterprises and Small Enterprises ( 11.6) ( 18.0) ( 26.6) ( 34.8) ( 42.2) ( -  ) ( -  ) ( -  )
Total Outstanding dues of creditors other than Micro Enterprises and Small Enterprises ( 1,301.5) ( 1,315.3) ( 1,644.7) ( 1,816.7) ( 2,020.1) ( 2,228.1) ( 4,405.2) ( 3,248.9)
Other Financial Liabilties ( 661.5) ( 823.5) ( 880.0) ( 1,208.6) ( 1,429.4) ( 1,180.4) [21] ( 1,380.4) ( 1,580.4)
Other Current liabilities ( 171.9) ( 198.2) ( 206.3) ( 245.0) ( 119.2) ( 116.9) [22] ( 116.9) ( 116.9)
Provisions ( 30.2) ( 36.4) ( 36.2) ( 42.9) ( 52.3) ( 47.7) [23] ( 47.7) ( 47.7)
Current Tax Liabilities (Net) ( 85.4) ( 63.8) ( 55.3) ( 51.1) ( 48.7) ( 53.7) [24] ( 53.7) ( 53.7)
Total Current Liabilities ( 2,262.1) ( 2,455.1) ( 2,875.9) ( 3,399.0) ( 3,841.4) ( 3,765.8) ( 6,142.9) ( 5,186.6)

Total Equity And Liabilties ( 7,626.0) ( 8,725.0) ( 10,358.0) ( 11,587.9) ( 13,682.9) ( 14,737.1) ( 18,441.2) ( 18,325.5)
Check ( -  ) ( -  ) ( -  ) ( -  ) ( (0.0) ( -  ) ( -  ) ( -  )

Cash Flow Statement

Cash Flow From Operations
Profit Before tax ( 1,933.6) ( 2,403.1) ( 2,656.7) ( 2,865.8) ( 3,174.6) ( 2,967.4) ( 2,434.0) ( 2,241.4)
Adjustment for:
Depreciation and amortisation expense ( 225.5) ( 234.5) ( 295.4) ( 311.1) ( 382.2) ( 477.1) ( 566.2) ( 628.4)
Interest income ( (5.2) ( (11.5) ( (21.5) ( (25.5) ( (24.5) ( (29.7) ( (28.8) ( (30.1)
Goodwill written off ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( 35.4) ( -  ) ( -  )
Dividend income ( (71.3) ( (70.3) ( (76.9) ( (42.7) ( (45.6) ( -  ) ( -  ) ( -  )
Finance costs ( 27.1) ( 23.4) ( 18.9) ( 21.1) ( 30.0) ( 27.5) ( 30.4) ( 33.4)
Allowance for doubtful debts and advances ( 1.6) ( 3.3) ( 2.5) ( 4.8) ( 4.4) ( -  ) ( -  ) ( -  )
Bad debts written off ( 1.1) ( 2.0) ( 2.1) ( 3.9) ( 2.5) ( -  ) ( -  ) ( -  )
Income on prepayment of loan ( -  ) ( -  ) ( (3.5) ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
Deferred income arising from government grant ( -  ) ( -  ) ( (0.6) ( (1.1) ( (1.1) ( -  ) ( -  ) ( -  )
Net unrealised foreign exchange (gain) ( 8.3) ( (11.0) ( 1.8) ( (9.3) ( (9.1) ( -  ) ( -  ) ( -  )
(Gain)/Loss on sale of property, plant and equipment (net) ( (0.3) ( (10.4) ( (0.8) ( 2.9) ( (13.9) ( -  ) ( -  ) ( -  )
Net gain arising on financial assets measured at fair value through profit or loss (FVTPL) ( (29.6) ( (51.9) ( (64.9) ( (49.6) ( (52.8) ( -  ) ( -  ) ( -  )
Impairment loss on non-current investment ( (14.0) ( 65.4) ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
Operating Profit before working capital changes ( 2,076.7) ( 2,576.7) ( 2,809.2) ( 3,081.5) ( 3,446.8) ( 3,477.7) ( 3,001.9) ( 2,873.1)
Adjustments for :
(Increase) in trade receivables ( (8.7) ( (34.9) ( (240.6) ( (149.7) ( (114.4) ( (63.0) ( (424.3) ( 242.1)
(Increase) in financial assets ( (50.3) ( (99.0) ( (181.0) ( (46.9) ( (76.5) ( 163.5) ( 88.3) ( (120.1)
(Increase)/Decrease in inventories ( (130.8) ( 192.1) ( (584.0) ( 15.7) ( (406.7) ( 12.1) ( (1,832.2) ( 506.5)
Decrease/(Increase) in other assets ( -  ) ( (7.7) ( (19.3) ( (160.2) ( 66.6) ( 15.8) ( 30.4) ( (41.3)
Increase in trade and other payables ( (165.9) ( 98.3) ( 463.6) ( 365.0) ( 173.8) ( (85.6) ( 2,377.1) ( (956.3)
Increase in provisions ( 11.6) ( 15.2) ( 15.5) ( 16.4) ( 8.3) ( (4.6) ( -  ) ( -  )
Cash generated from Operating activities ( 1,732.8) ( 2,740.6) ( 2,263.5) ( 3,121.8) ( 3,098.0) ( 3,515.9) ( 3,241.3) ( 2,504.0)
Income Tax paid (net of refund) ( (589.2) ( (761.0) ( (843.4) ( (985.7) ( (913.8) ( (741.9) ( (608.5) ( (560.4)
Net Cash generated from Operating activities ( 1,143.6) ( 1,979.7) ( 1,420.0) ( 2,136.1) ( 2,184.1) ( 2,774.0) ( 2,632.7) ( 1,943.6)

Net Cash from Investing Activities

Purchase of Property, plant and equipment, Right of use assets and capital work in progress ( (336.3) ( (686.7) ( (611.5) ( (1,358.3) ( (1,067.3) ( (904.8) ( (700.0) ( (802.9)
Sale of Property, plant and equipment ( 1.5) ( 12.2) ( 1.8) ( 9.4) ( 15.0) ( -  ) ( -  ) ( -  )
(Purchase)/ sale of other intangible assets and goodwill ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( (26.5) ( (8.8) ( (13.3)
Loan to subsidiary (net) ( (0.3) ( (0.2) ( 0.2) ( -  ) ( (1.7) ( (379.8) ( -  ) ( -  )
Repayment of loan from subsidiaries ( 0.4) ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
Purchase of front end sales business from Ess Ess Bathroom Products Private Ltd. ( (36.5) ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
Purchase of non-current investments - Subsidiaries ( (0.5) ( (143.2) ( -  ) ( (211.6) ( -  ) ( -  ) ( -  ) ( -  )
Purchase of non-current investments - others ( (242.0) ( (282.3) ( (70.0) ( (54.0) ( (325.0) ( -  ) ( -  ) ( -  )
Sale of non-current investments ( 330.5) ( 209.7) ( 220.9) ( 195.7) ( 363.4) ( 24.3) ( -  ) ( -  )
Purchase of term deposits ( (0.0) ( (70.0) ( (290.0) ( (581.0) ( (414.0) ( 57.4) ( -  ) ( -  )
Proceeds from maturity of term deposits ( 2.1) ( -  ) ( 70.0) ( 666.0) ( 414.0) ( 58.7) ( -  ) ( -  )
Sale/(Purchase) of current investments (net) ( (87.0) ( 22.9) ( 2.9) ( (99.4) ( 121.7) ( -  ) ( -  ) ( -  )
Interest received ( 4.6) ( 4.6) ( 13.9) ( 19.6) ( 33.1) ( 29.7) ( 28.8) ( 30.1)
Dividend received from subsidiaries ( 2.4) ( 3.1) ( 5.1) ( 6.1) ( 7.1) ( -  ) ( -  ) ( -  )
Dividend received from others ( 68.9) ( 67.3) ( 71.8) ( 36.6) ( 38.5) ( -  ) ( -  ) ( -  )
Net Cash (used in) Investing activities ( (292.3) ( (862.8) ( (584.8) ( (1,371.0) ( (815.1) ( (1,141.1) ( (680.1) ( (786.1)

Cash Flow from Financing Activities

Proceeds from non-current borrowings ( 0.1) ( 5.9) ( 7.9) ( -  ) ( -  ) ( (93.8) ( (42.1) ( -  )
Repayment of non-current borrowings ( (8.2) ( (7.5) ( (40.9) ( (2.0) ( (1.4) ( -  ) ( -  ) ( -  )
Payment of lease liabilities ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( 77.9) ( -  ) ( -  )
Acceptances (net) ( -  ) ( 65.8) ( 13.2) ( (32.1) ( 153.9) ( -  ) ( -  ) ( -  )
Proceeds from short term borrowings ( 19.9) ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
Repayment of short term borrowings ( (39.8) ( -  ) ( -  ) ( -  ) ( -  ) ( 0.7) ( -  ) ( -  )
Finance costs paid ( (26.7) ( (19.8) ( (22.6) ( (20.2) ( (25.8) ( (27.5) ( (30.4) ( (33.4)
Dividend and Dividend tax paid ( (673.0) ( (748.7) ( (913.6) ( (1,184.8) ( (1,022.5) ( (1,066.0) ( (456.4) ( (840.5)
Net Cash (used in) Financing activities ( (727.7) ( (704.3) ( (956.0) ( (1,239.1) ( (895.8) ( (1,108.6) ( (528.9) ( (873.9)

Net Increase/(Decrease) in cash and cash equivalents ( 123.7) ( 412.6) ( (120.7) ( (473.9) ( 473.3) ( 524.3) ( 1,423.8) ( 283.6)
Add: Cash and cash equivalents as at 1st April ( 739.0) ( 863.9) ( 1,276.5) ( 1,157.0) ( 683.1) ( 98.3) ( 622.6) ( 2,046.4)
Add: Pursuant to Amalgamation ( -  ) ( 1.3) ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
Cash and cash equivalents as at 31st March ( 862.7) ( 1,276.5) ( 1,157.0) ( 683.1) ( 1,156.4) ( 622.6) ( 2,046.4) ( 2,330.0)

Cash and Cash Equivalent Comprise of:

Cash on hand ( 0.1) ( 0.1) ( 0.0) ( 0.0) ( 0.0)
Balances with Banks:
Current Accounts ( 22.6) ( 2.1) ( 22.9) ( 12.8) ( 1.1)
Cash Credit Account ( 1.6) ( 6.4) ( 8.3) ( 2.0) ( 1.8)
Deposit with bank with maturity less than 3 months ( -  ) ( 43.5) ( -  ) ( 25.1) ( 52.0)
Cheques, draft on hand ( 29.2) ( 24.6) ( 30.8) ( 66.8) ( 43.4)
Cash and cash equivalents in Balance sheet ( 53.5) ( 76.8) ( 62.0) ( 106.7) ( 98.3) ( 12.0) ( 1,435.8) ( 1,719.4)
Add: Investment in liquid mutual funds ( 809.2) ( 1,199.7) ( 1,121.8) ( 576.4) ( 1,062.4) ( 610.6) ( 610.6) ( 610.6)
Bank Overdraft ( -  ) ( (26.8) ( -  ) ( (4.4) ( -  ) ( -  ) ( -  )
Cash and cash equivalents in Cash Flow Statement ( 862.7) ( 1,276.5) ( 1,157.0) ( 683.1) ( 1,156.4) ( 622.6) ( 2,046.4) ( 2,330.0)
Check ( -  ) ( 0.0) ( (0.0) ( (0.0) ( (0.0)
ASIAN PAINTS FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
(all figures are in INR cr except stated otherwise) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Financial year end: 31 March Actual Actual Actual Actual Actual Estimate Estimate Estimate

Income Statement Drivers

Revenue from Operations

Paints and allied products ( 12,740.2) ( 13,001.0) ( 14,013.0) ( 14,154.5) ( 15,995.8) ( 16,795.6) ( 15,116.0) ( 17,383.4)
y/y growth - 2.0% 7.8% 1.0% 13.0% 5.0% -10.0% 15.0% [25]
Bath fittings and allied products ( 128.7) ( 131.3) ( 141.5) ( 161.7) ( 201.1) ( 211.1) ( 200.6) ( 240.7)
y/y growth - 2.0% 7.8% 14.2% 24.4% 5.0% -5.0% 20.0%
Revenue from Sale of products (including excise duty) ( 12,868.9) ( 13,132.3) ( 14,154.5) ( 14,316.1) ( 16,196.9) ( 17,006.7) ( 15,316.6) ( 17,624.1)

Revenue from home solutions operations ( 7.8) ( 9.7) ( 4.7) ( 9.7) ( 12.5) ( 15.6) ( 7.8) ( 10.5)
y/y growth - 23.8% -51.5% 107.0% 28.3% 25.0% -50.0% 35.0%
Others ( 2.1) ( 2.9) ( 2.9) ( 3.3) ( 0.1) ( 0.1) ( 0.1) ( 0.1)
y/y growth - 40.7% -1.7% 14.5% -97.3% 20.0% 4.0% 20.0%
Revenue from sale of services ( 9.9) ( 12.6) ( 7.6) ( 13.0) ( 12.6) ( 15.7) ( 7.9) ( 10.7)

Other Operating Revenues ( 163.2) ( 187.2) ( 198.3) ( 230.4) ( 182.3) ( 191.5) ( 181.9) ( 194.6)
y/y growth - 14.8% 5.9% 16.2% -20.9% 5.0% -5.0% 7.0%
Total Revenue from Operations ( 13,042.0) ( 13,332.2) ( 14,360.4) ( 14,559.6) ( 16,391.8) ( 17,213.9) ( 15,506.4) ( 17,829.4)
Check ( -  ) ( -  ) ( -  ) ( -  ) ( -  )

Cost of Materials Consumed

Raw Materials Consumed:
Opening Stock ( 579.1) ( 541.5) ( 534.3) ( 597.9) ( 728.2) ( 870.3) ( 880.8) ( 1,441.1)
Add: Purchases ( 5,115.7) ( 4,808.9) ( 5,629.7) ( 6,041.2) ( 7,420.3) ( 7,791.3) ( 8,726.3) ( 8,813.6)
Growth (%) -6.0% 17.1% 7.3% 22.8% 5.0% 12.0% [26] 1.0% [27]
Less: Closing Stock ( 541.5) ( 534.3) ( 597.9) ( 728.2) ( 870.3) ( 880.8) ( 1,441.1) ( 1,230.6)
Closing as % of Opening + Purchases 9.5% 10.0% 9.7% 11.0% 10.7% 10.2% 15.0% 12.0%
Total Raw Materials Consumed ( 5,153.3) ( 4,816.1) ( 5,566.1) ( 5,911.0) ( 7,278.2) ( 7,780.8) ( 8,166.0) ( 9,024.1)

Packing Materials Consumed:

Opening Stock ( 36.0) ( 35.6) ( 40.1) ( 36.3) ( 39.6) ( 38.3) ( 47.1) ( 108.9)
Add: Purchases ( 1,038.0) ( 1,054.4) ( 1,167.5) ( 1,192.4) ( 1,368.4) ( 1,436.8) ( 1,508.6) ( 1,538.8)
Growth (%) 1.6% 10.7% 2.1% 14.8% 5.0% 5.0% 2.0% [28]
Less: Closing Stock ( 35.6) ( 40.1) ( 36.3) ( 39.6) ( 38.3) ( 47.1) ( 108.9) ( 82.4)
Closing as % of Opening + Purchases 3.3% 3.7% 3.0% 3.2% 2.7% 3.2% 7.0% 5.0%
Total Packing Materials Consumed ( 1,038.4) ( 1,049.9) ( 1,171.3) ( 1,189.2) ( 1,369.6) ( 1,428.0) ( 1,446.8) ( 1,565.3)

Total Cost of Materials Consumed ( 6,191.7) ( 5,865.9) ( 6,737.5) ( 7,100.2) ( 8,647.8) ( 9,208.9) ( 9,612.8) ( 10,589.4)
Check ( (0.00) ( 0.00) ( (0.00) ( -  ) ( -  )

Purchase of stock-in-trade
Purchase of stock-in-trade ( 380.6) ( 524.4) ( 646.5) ( 742.6) ( 1,010.7) ( 1,226.0) ( 1,106.4) ( 1,269.1)
% of revenue 2.88% 3.86% 4.41% 5.00% 6.06% 7.00% 7.00% 7.00%

Changes in Inventories of Finished goods, Stock-in-Trade and Work-in-Progress

Finished Goods (including goods-in-transit) ( 1,009.5) ( 778.4) ( 1,233.3) ( 1,019.1) ( 1,219.4) ( 1,190.2) ( 2,076.4) ( 1,896.5)
Work-in-Progress ( 91.9) ( 64.5) ( 74.8) ( 95.6) ( 105.7) ( 105.2) ( 180.2) ( 159.4)
Stock-in-Trade- acquired for trading (including goods-in-transit) ( 71.0) ( 135.0) ( 185.4) ( 224.7) ( 262.1) ( 260.9) ( 446.7) ( 395.3)
Total ( 1,172.4) ( 977.9) ( 1,493.5) ( 1,339.4) ( 1,587.2) ( 1,556.3) ( 2,703.2) ( 2,451.2)
Changes in Inventories of Finished goods, Stock-in-Trade and Work-in-Progress ( (132.4) ( 194.5) ( (515.6) ( 154.1) ( (247.9) ( 30.9) ( (1,146.9) ( 252.0)
Check ( -  ) ( 0.0) ( -  ) ( (0.0) ( (0.0)

Employee Benefit Expense

Salaries and wages ( 510.8) ( 575.0) ( 642.4) ( 679.2) ( 782.6) ( 774.3) ( 572.0) ( 618.9)
Number of permanent employees ( 5,897.0) ( 6,067.0) ( 5,952.0) ( 5,861.0) ( 6,456.0) ( 7,056.0) ( 6,981.0) ( 7,131.0)
y/y growth ( 170.0) ( (115.0) ( (91.0) ( 595.0) ( 600.0) ( (75.0) ( 150.0)
Number of temporary employees ( 9,599.0) ( 10,584.0) ( 12,475.0) ( 12,314.0) ( 13,603.0) ( 14,603.0) ( 14,353.0) ( 14,853.0)
y/y growth ( 985.0) ( 1,891.0) ( (161.0) ( 1,289.0) ( 1,000.0) ( (250.0) ( 500.0)
Average Salary per employee ( 329,620.5) ( 345,342.6) ( 348,640.6) ( 373,722.1) ( 390,149.1) ( 357,495.0) ( 268,121.2) ( 281,527.3)
Contribution to provident and other funds ( 50.8) ( 37.3) ( 39.9) ( 48.1) ( 46.6) ( 46.6) ( 46.6) ( 46.6)
Staff welfare expenses ( 45.4) ( 54.5) ( 60.5) ( 63.8) ( 73.6) ( 73.6) ( 55.2) ( 55.2)
Total ( 606.9) ( 666.8) ( 742.8) ( 791.1) ( 902.8) ( 894.5) ( 673.8) ( 720.7)
% of Revenue from Operations 4.7% 5.0% 5.2% 5.4% 5.5% 5.2% 4.3% 4.0%
Check ( (0.00) ( (0.00) ( -  ) ( -  ) ( 0.00)

Interest Income
Financial Asset ( 2,559.9) ( 3,288.2) ( 3,813.5) ( 2,624.4) ( 3,081.2) ( 2,765.6) ( 2,677.3) ( 2,797.5)
Interest Income ( 4.6) ( 4.6) ( 13.9) ( 19.6) ( 33.1) ( 29.7) ( 28.8) ( 30.1)
Interest Income (%) 0.2% 0.1% 0.4% 0.7% 1.1% 1.1% 1.1% 1.1%

Interest Expense
Finance Cost ( 27.13) ( 23.40) ( 18.86) ( 21.06) ( 30.01) ( 27.50) ( 30.43) ( 33.37)
Gross Debt ( 693.56) ( 854.42) ( 919.52) ( 1,219.08) ( 2,045.08) ( 1,873.79) ( 2,073.79) ( 2,273.79)
Interest % 3.9% 2.7% 2.1% 1.7% 1.5% 1.5% 1.5% 1.5%

Income Tax/( Benefit)

Profit Before Tax ( 1,933.6) ( 2,403.1) ( 2,656.7) ( 2,865.8) ( 3,174.6) ( 2,967.4) ( 2,434.0) ( 2,241.4)
Effective Tax Rate 31.9% 30.9% 30.8% 33.8% 27.8% 25.0% [29] 25.0% 25.0%
Income Tax/( Benefit) ( 616.4) ( 743.7) ( 817.3) ( 968.9) ( 881.6) ( 741.9) ( 608.5) ( 560.4)
Dividend Paid
Final Dividend ( 412.5) ( 412.5) ( 508.4) ( 733.8) ( 580.3) ( 600.1) ( 256.9) ( 473.2)
Final Dividend as % of Total dividend expense 61.3% 55.1% 55.6% 61.9% 56.8% 56.3% 56.3% 56.3%
DDT on final dividend ( 113.0) ( 126.2) ( 154.3) ( 147.9) ( 118.8) ( 123.9) ( 53.0) ( 97.7)
DDT on final dividend as % of Total dividend expense 16.8% 16.9% 16.9% 12.5% 11.6% 11.6% 11.6% 11.6%
Interim Dividend ( 172.7) ( 211.0) ( 254.2) ( 254.2) ( 273.4) ( 285.0) ( 122.0) ( 224.7)
Interim Dividend as % of Total dividend expense 25.7% 28.2% 27.8% 21.5% 26.7% 26.7% 26.7% 26.7%
DDT on Interim Dividend ( -  ) ( -  ) ( -  ) ( 51.6) ( 54.7) ( 57.0) ( 24.4) ( 45.0)
DDT on interim dividend as % of Total dividend expense NA NA NA 4.4% 5.3% 5.3% 5.3% 5.3%
Dividend and DDT Paid ( 673.0) ( 748.7) ( 913.6) ( 1,184.8) ( 1,022.5) ( 1,066.0) ( 456.4) ( 840.5)
Net Income ( 1,327.4) ( 1,622.8) ( 1,801.7) ( 1,894.8) ( 2,134.8) ( 2,225.6) ( 1,825.5) ( 1,681.1)
Dividend Payout Ratio 50.7% 46.1% 50.7% 62.5% 47.9% 47.9% 25.0% [30] 50.0%

Balance Sheet Drivers

Current Investment
Investments in Quoted Mutual Funds measured at FVTPL
Current Portion of long term investment ( 230.1) ( 204.5) ( 193.6) ( 346.9) ( 84.3) ( 48.4) ( 48.4) ( 48.4)
% of total 20.4% 13.8% 14.7% 33.7% 7.3% 7.3% 7.3% 7.3%
Investment in Liquid Fund ( 809.2) ( 1,199.7) ( 1,121.8) ( 576.4) ( 1,062.4) ( 610.6) ( 610.6) ( 610.6)
% of total 71.8% 81.2% 85.3% 56.0% 92.7% 92.7% 92.7% 92.7%
Investment with original maturity more than three months but less than twelve months ( 88.0) ( 72.8) ( -  ) ( 106.8) ( -  ) ( -  ) ( -  ) ( -  )
% of total 7.8% 4.9% 0.0% 10.4% 0.0% 0.0% 0.0% 0.0%
Total Current Investment ( 1,127.4) ( 1,477.0) ( 1,315.4) ( 1,030.0) ( 1,146.6) ( 659.1) ( 659.1) ( 659.1)
Check ( -  ) ( -  ) ( (0.00) ( -  ) ( -  )

Other Working Capital Asset

Loans ( 11.7) ( 9.7) ( 13.6) ( 12.2) ( 14.0) ( 14.5) ( 13.1) ( 15.0)
Other Financial Assets ( 231.3) ( 306.3) ( 474.1) ( 627.2) ( 567.6) ( 891.2) ( 804.3) ( 922.5)
Other Current Assets ( 205.6) ( 217.9) ( 232.0) ( 393.3) ( 327.5) ( 311.7) ( 281.3) ( 322.7)

Total Revenue ( 13,228.8) ( 13,581.6) ( 14,660.6) ( 14,837.1) ( 16,670.6) ( 17,513.9) ( 15,806.4) ( 18,129.4)

% of Sales:
Loans 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Other Financial Assets 1.7% 2.3% 3.2% 4.2% 3.4% 5.1% 5.1% 5.1%
Other Current Assets 1.6% 1.6% 1.6% 2.7% 2.0% 1.8% 1.8% 1.8%

Other Equity
Balance at the beginning of the year ( 3,505.0) ( 4,974.0) ( 5,829.8) ( 6,998.8) ( 7,702.2) ( 8,747.0) ( 9,906.6) ( 11,275.8)
Changes on account of amalgamation ( -  ) ( 145.2) ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
Add: Profit for the year ( 1,327.4) ( 1,622.8) ( 1,801.7) ( 1,894.8) ( 2,134.8) ( 2,225.6) ( 1,825.5) ( 1,681.1)
Add: Other Comprehensive Income ( -  ) ( (17.3) ( 139.0) ( (4.0) ( (18.2) ( -  ) ( -  ) ( -  )
Less: Dividends ( 585.1) ( 623.5) ( 762.6) ( 988.0) ( 853.7) ( 885.1) ( 378.9) ( 697.9)
Less: Income tax on dividends ( 113.0) ( 126.2) ( 154.3) ( 199.4) ( 173.5) ( 180.9) ( 77.4) ( 142.6)
Balance at the end of the year ( 4,134.3) ( 5,829.8) ( 6,998.8) ( 7,702.2) ( 8,791.6) ( 9,906.6) ( 11,275.8) ( 12,116.3)
ASIAN PAINTS FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
(all figures are in INR cr except stated otherwise) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Financial year end: 31 March Actual Actual Actual Actual Actual Estimate Estimate Estimate

PP&E Schedule
Gross Carrying Value at the beginning of the year ( 2,869.1) ( 1,886.4) ( 2,743.5) ( 2,991.4) ( 3,085.1) ( 5,538.5) ( 6,414.2) ( 7,114.2)
Additions during the year ( 123.4) ( 858.1) ( 249.6) ( 260.9) ( 2,458.8) ( 875.7) ( 700.0) [31] ( 802.9)
Capex as % of revenue 0.9% 6.3% 1.7% 1.8% 14.7% 5.0% 4.4% 4.4%
Deductions/Adjustments ( 63.2) ( 1.0) ( 1.6) ( 17.3) ( 5.4) ( -  ) ( -  ) ( -  )
Gross Carrying Value at the end of the year (A) ( 2,929.3) ( 2,743.5) ( 2,991.4) ( 3,235.1) ( 5,538.5) ( 6,414.2) ( 7,114.2) ( 7,917.1)

Depreciation at the beginning of the year ( 895.9) ( -  ) ( 210.5) ( 479.4) ( 757.6) ( 1,107.9) ( 1,589.0) ( 2,122.5)
Additions during the year ( 204.2) ( 210.8) ( 269.5) ( 283.2) ( 354.6) ( 481.1) ( 533.6) ( 593.8)
Deductions/Adjustments ( 57.1) ( 0.3) ( 0.6) ( 5.0) ( 4.3) ( -  ) ( -  ) ( -  )
Depreciation at the end of the year (B) ( 1,042.9) ( 210.5) ( 479.4) ( 757.6) ( 1,107.9) ( 1,589.0) ( 2,122.5) ( 2,716.3)

Net Carrying Value (A-B) ( 1,886.4) ( 2,533.0) ( 2,512.0) ( 2,477.4) ( 4,430.6) ( 4,825.2) ( 4,991.7) ( 5,200.8)
Check ( -  ) ( 0.00) ( -  ) ( (0.00) ( 0.00)

Depreciation Expense
Depreciation ( 204.2) ( 210.8) ( 269.5) ( 283.2) ( 354.6) ( 481.1) ( 533.6) ( 593.8)
Gross PP&E ( 2,929.3) ( 2,743.5) ( 2,991.4) ( 3,235.1) ( 5,538.5) ( 6,414.2) ( 7,114.2) ( 7,917.1)
Depreciation (%) 7.0% 7.7% 9.0% 8.8% 6.4% 7.5% 7.5% 7.5%

Amortization Schedule
Other Intangible Assets:
Gross Carrying Value at the beginning of the year ( 112.0) ( 79.1) ( 119.6) ( 139.7) ( 166.0) ( 192.5) ( 219.0) ( 227.8)
Additions during the year ( 61.5) ( 40.6) ( 22.6) ( 26.3) ( 26.5) ( 26.5) ( 8.8) ( 13.3)
Deductions/Adjustments ( -  ) ( 0.1) ( -  ) ( 0.1) ( 0.0) ( -  ) ( -  ) ( -  )
Gross Carrying Value at the end of the year (A) ( 173.4) ( 119.6) ( 142.2) ( 166.0) ( 192.5) ( 219.0) ( 227.8) ( 241.0)

Amortisation at the beginning of the year ( 73.0) ( -  ) ( 23.6) ( 47.0) ( 74.9) ( 102.5) ( 133.9) ( 166.6)
Additions during the year ( 21.4) ( 23.7) ( 25.9) ( 27.9) ( 27.6) ( 31.4) ( 32.7) ( 34.6)
Deductions/Adjustments ( -  ) ( 0.1) ( -  ) ( 0.0) ( -  ) ( -  ) ( -  ) ( -  )
Depreciation at the end of the year (B) ( 94.4) ( 23.6) ( 49.5) ( 74.9) ( 102.5) ( 133.9) ( 166.6) ( 201.2)

Net Carrying Value (A-B) ( 79.1) ( 96.0) ( 92.7) ( 91.1) ( 90.0) ( 85.1) ( 61.2) ( 39.9)

Amortisation Expense
Amortisation ( 21.4) ( 23.7) ( 25.9) ( 27.9) ( 27.6) ( 31.4) ( 32.7) ( 34.6)
Gross Intangible Assets ( 173.4) ( 119.6) ( 142.2) ( 166.0) ( 192.5) ( 219.0) ( 227.8) ( 241.0)
Amortisation (%) 12.3% 19.8% 18.2% 16.8% 14.3% 14.3% 14.3% 14.3%

Working Capital Schedule

Inventory
Raw Materials ( 541.5) ( 534.3) ( 597.9) ( 728.2) ( 870.3) ( 880.8) ( 1,441.1) ( 1,230.6)
% of Total Inventory 30.0% 33.2% 27.3% 33.4% 33.7% 34.2% 32.7% 31.6%
Packaging Material ( 35.6) ( 40.1) ( 36.3) ( 39.6) ( 38.3) ( 47.1) ( 108.9) ( 82.4)
% of Total Inventory 2.0% 2.5% 1.7% 1.8% 1.5% 1.8% 2.5% 2.1%
Work-in-progress ( 91.9) ( 64.5) ( 74.8) ( 95.6) ( 105.7) ( 105.2) ( 180.2) ( 159.4)
% of Total Inventory 5.1% 4.0% 3.4% 4.4% 4.1% 4.1% 4.1% 4.1%
Finished Goods (including goods-in-transit) ( 1,009.5) ( 778.4) ( 1,233.3) ( 1,019.1) ( 1,219.4) ( 1,190.2) ( 2,076.4) ( 1,896.5)
% of Total Inventory 56.0% 48.3% 56.2% 46.8% 47.2% 46.3% 47.1% 48.6%
Stock-in-Trade- acquired for trading (including goods-in-transit) ( 71.0) ( 135.0) ( 185.4) ( 224.7) ( 262.1) ( 260.9) ( 446.7) ( 395.3)
% of Total Inventory 3.9% 8.4% 8.4% 10.3% 10.1% 10.1% 10.1% 10.1%
Stores, Spares and Consumables (Including goods-in-transit) ( 52.6) ( 57.8) ( 66.4) ( 71.3) ( 89.3) ( 88.9) ( 152.0) ( 134.5) <<< Adjusted in other expenses
% of Total Inventory 2.9% 3.6% 3.0% 3.3% 3.5% 3.5% 3.5% 3.5% in Income Statement
Total Inventories ( 1,802.2) ( 1,610.1) ( 2,194.1) ( 2,178.4) ( 2,585.1) ( 2,573.0) ( 4,405.2) ( 3,898.7)

Inventory ( 1,802.2) ( 1,610.1) ( 2,194.1) ( 2,178.4) ( 2,585.1) ( 2,573.0) ( 4,405.2) ( 3,898.7)

COGS ( 6,572.3) ( 6,390.4) ( 7,384.0) ( 7,842.7) ( 9,658.5) ( 10,434.9) ( 10,719.2) ( 11,858.4) Min Average Max
Days of Inventory in hand ( 100.1) ( 92.0) ( 108.5) ( 101.4) ( 97.7) ( 90.0) ( 150.0) ( 120.0) ( 92.0) ( 99.9) ( 108.5)

Receivables
Trade Receivables ( 729.6) ( 759.1) ( 994.6) ( 1,138.2) ( 1,245.0) ( 1,307.9) ( 1,732.2) ( 1,490.1)
Revenue ( 13,228.8) ( 13,581.6) ( 14,660.6) ( 14,837.1) ( 16,670.6) ( 17,513.9) ( 15,806.4) ( 18,129.4) Min Average Max
Days of receivables outstanding ( 20.1) ( 20.4) ( 24.8) ( 28.0) ( 27.3) ( 27.3) ( 40.0) [32] ( 30.0) ( 20.1) ( 24.1) ( 28.0)

Trade Payables
Total Trade Payables ( 1,313.1) ( 1,333.2) ( 1,671.3) ( 1,851.5) ( 2,062.3) ( 2,228.1) ( 4,405.2) ( 3,248.9)
COGS ( 6,572.3) ( 6,390.4) ( 7,384.0) ( 7,842.7) ( 9,658.5) ( 10,434.9) ( 10,719.2) ( 11,858.4) Min Average Max
Days Payables ( 72.9) ( 76.1) ( 82.6) ( 86.2) ( 77.9) ( 77.9) ( 150.0) ( 100.0) ( 72.9) ( 79.2) ( 86.2)
ASIAN PAINTS FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
(all figures are in INR cr except stated otherwise) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Financial year end: 31 March Actual Actual Actual Actual Actual Estimate Estimate Estimate
Terminal Value
Free Cash Flow (Standalone) Year 1 Year 2 Year 3 Year 4 Exit Multiple Perpetual Growth
EBIT ( 1,974.2) ( 2,491.9) ( 2,675.6) ( 2,886.9) ( 3,204.6) ( 2,994.9) ( 2,464.5) ( 2,274.8)
Tax Rate 31.9% 30.9% 30.8% 33.8% 27.8% 25.0% 25.0% 25.0%
EBIT*(1-Tax rate) or NOPAT ( 1,344.8) ( 1,720.6) ( 1,852.5) ( 1,910.9) ( 2,314.6) ( 2,246.2) ( 1,848.3) ( 1,706.1)
Add: Depreciation & amortization ( 223.1) ( 234.5) ( 295.4) ( 311.1) ( 382.2) ( 477.1) ( 566.2) ( 628.4)
Less: Capital expenditure ( (336.3) ( (686.7) ( (611.5) ( (1,358.3) ( (1,067.3) ( (904.8) ( (700.0) ( (802.9)
Add / Less: Change in working capital ( (344.0) ( 164.0) ( (545.8) ( 40.3) ( (348.8) ( 38.2) ( 239.3) ( (369.1)
Free Cash Flow ( 887.7) ( 1,432.4) ( 990.7) ( 904.0) ( 1,280.7) ( 1,856.7) ( 1,953.9) ( 1,162.5) ( 116,974.6) ( 47,515.6)
WACC 6.5% 6.5% 6.5% 6.5% 6.5% 6.5%
PV of Free Cash Flow ( 1,202.1) ( 1,635.6) ( 1,615.5) ( 902.1) ( 90,775.8) ( 36,873.6)

Calculation of TEV Assumptions for terminal Value

Share price ( 1,530.0) Growth Rate 4.0%
Shares outstanding ( 95.9) Exit Multiple 40.3x
Market cap ( 146,757.6) EBITDA 2022E ( 2,903.2)
Add: Net debt ( (798.2)
Enterprise value ( 145,959.5)

Exit Multiple Perpetual

PV of all future Cash Flows ( 96,131.2) ( Growth
41,026.8)
Less: Net Debt ( (798.2) ( (798.2)
Equity Value ( 96,929.3) ( 41,825.0)
Fair Value of Share ( 1,010.5) ( 436.0)

Sensitivity Analysis
EXIT MULTIPLE LTGR
( 1,010.52) 39.3x 40.3x 41.3x ( 436.04) 3.0% 4.0% 5.0%
5.5% 1022.51 1046.90 1071.29 5.5% 446.98 709.31 1935.51
6.0% 1004.56 1028.50 1052.43 6.0% 375.86 539.15 1015.16
WACC 6.5% 987.03 1010.52 1034.01 WACC 6.5% 324.93 436.04 691.05
7.0% 969.91 992.96 1016.02 7.0% 286.69 366.94 525.70
7.5% 953.19 975.81 998.44 7.5% 256.97 317.46 425.50
ASIAN PAINTS
(all figures are in INR cr except stated otherwise)
Financial year end: 31 March

Assumptions Peer Data

Tax rate 25.0% Currency Beta (Levered) Beta (Unlevered) Debt Equity Debt/Equity
Market risk premium 6.5% Nerolac Paints INR 0.69 0.69 ( 184.4) ( 19,417.3) 0.95%
Risk free rate 5.0% Berger Paints INR 0.71 0.70 (1,027.5) ( 44,558.9) 2.31%
Growth 4.0% [33] Pidilite Industries INR 0.68 0.68 ( 222.0) ( 68,793.4) 0.32%
Hindustan Unilever INR 0.21 0.43 ( 79.0) ( 434,808.0) 0.02%
Estimated Cost of Debt 1.5% Mean: 0.57 0.62
Debt as % of Capital 0.72% Source: Infront Analytics
Equity as % of Capital 99.3%
Estimated Cost of Equity 98.5%

WACC Calculation
Cost of Debt:
Estimated Cost of Debt 1.5%
Tax Rate 25.0%
Adj. Cost of Debt 1.1%

Cost of Equity
Average Levered Beta 0.57
Cost of Equity 6.6%

WACC 6.5%
 ASIAN PAINTS
(all figures are in INR cr except stated otherwise)
Financial year end: 31 March

1 Company Code A B C D E
2 Company Asian Paints Nerolac Paints Berger Paints Pidilite Industries Hindustan Unilever
3
4 Current Date 12-May-20 12-May-20 12-May-20 12-May-20 12-May-20
5 B/S Date 30-Sep-19 30-Sep-19 30-Sep-19 30-Sep-19 30-Sep-19
6 Year End Date 31-Mar-19 31-Mar-19 31-Mar-19 31-Mar-19 31-Mar-19
7 Currency INR INR INR INR INR
8
9 Share Price ( 1,530.0) ( 360.3) ( 458.9) ( 1,354.2) ( 2,013.0)
10 Shares Outstanding ( 95.9) ( 53.9) ( 97.1) ( 50.8) ( 216.0)
11
12 Equity Value ( 146,757.6) ( 19,417.3) ( 44,558.9) ( 68,793.4) ( 434,808.0)
13 Cash & cash equivalents ( 282.3) ( 80.6) ( 137.9) ( 174.4) ( 2,320.0)
14 Total debt ( 1,062.8) ( 184.4) ( 1,027.5) ( 222.0) ( 79.0)
15 Pref. equity ( -  ) ( -  ) ( -  ) ( -  ) ( -  )
16 Non Controlling Interest ( 379.8) ( 17.9) ( 2.8) ( 210.8) ( 25.0)
17 Enterprise Value ( 147,917.9) ( 19,538.9) ( 45,451.3) ( 69,051.9) ( 432,592.0)
18
19 Revenue
20 Latest Financial Year (LFY) ( 19,349.8) ( 5,424.3) ( 6,061.9) ( 7,078.7) ( 39,310.0)
21 Add: 9M 2019 ( 10,155.4) ( 2,868.0) ( 3,315.1) ( 3,823.2) ( 20,469.0)
22 Less: 9M 2018 ( 8,993.9) ( 2,775.0) ( 2,973.1) ( 3,590.9) ( 19,268.0)
23 LTM ( 20,511.3) ( 5,517.3) ( 6,403.9) ( 7,311.1) ( 40,511.0)
24
25 EV/ LFY Revenue 7.6x 3.6x 7.5x 9.8x 11.0x
26 EV/ LTM Revenue 7.2x 3.5x 7.1x 9.4x 10.7x
27
28 EBIT
29 Latest Financial Year (LFY) ( 3,093.9) ( 706.8) ( 803.8) ( 1,382.1) ( 8,865.0)
30 Add: 9M 2019 ( 1,902.5) ( 416.8) ( 500.5) ( 829.7) ( 5,012.0)
31 Less: 9M 2018 ( 1,622.6) ( 397.3) ( 398.9) ( 746.3) ( 4,479.0)
32 LTM ( 3,373.8) ( 726.3) ( 905.4) ( 1,465.5) ( 9,398.0)
33
34 EV/ LFY EBIT 47.8x 27.6x 56.5x 50.0x 48.8x
35 EV/ LTM EBIT 43.8x 26.9x 50.2x 47.1x 46.0x
36
37 EBITDA
38 Latest Financial Year (LFY) ( 3,524.5) ( 813.0) ( 941.6) ( 1,514.9) ( 9,430.0)
39 Add: 9M 2019 ( 2,291.4) ( 483.7) ( 593.9) ( 907.6) ( 5,495.0)
40 Less: 9M 2018 ( 1,901.2) ( 447.0) ( 488.2) ( 808.0) ( 4,757.0)
41 LTM ( 3,914.7) ( 849.7) ( 1,047.4) ( 1,614.5) ( 10,168.0)
42
43 EV/ LFY EBITDA 42.0x 24.0x 48.3x 45.6x 45.9x
44 EV/ LTM EBITDA 37.8x 23.0x 43.4x 42.8x 42.5x
45
46 Net Income
47 Latest Financial Year (LFY) ( 2,211.9) ( 447.7) ( 497.5) ( 928.4) ( 6,060.0)
48 Add: 9M 2019 ( 1,514.2) ( 334.6) ( 371.1) ( 619.4) ( 3,613.0)
49 Less: 9M 2018 ( 1,074.8) ( 256.0) ( 250.3) ( 472.0) ( 3,042.0)
50 LTM ( 2,651.4) ( 526.3) ( 618.2) ( 1,075.9) ( 6,631.0)
51
52 EV/ LFY Net Income 66.9x 43.6x 91.4x 74.4x 71.4x
53 EV/ LTM Net Income 55.8x 37.1x 73.5x 64.2x 65.2x
54
55 EPS
56 Latest Financial Year (LFY) ( 23.06) ( 8.31) ( 5.12) ( 18.28) ( 28.06)
57 LTM ( 27.64) ( 9.77) ( 6.37) ( 21.18) ( 30.70)
58
59 Price/ LFY EPS 66.3x 43.4x 89.6x 74.1x 71.8x
60 Price/ LTM EPS 55.4x 36.9x 72.1x 63.9x 65.6x
 ASIAN PAINTS
(all figures are in INR cr except stated otherwise)
Financial year end: 31 March

Comparable Company Analysis

Enterprise TEV/Revenue TEV/EBITDA Price/EPS
Company Share Price Equity Value
Value LFY LTM LFY LTM LFY LTM
B Nerolac Paints ( 360.3) ( 19,417.3) ( 19,538.9) 3.6x 3.5x 24.0x 23.0x 43.4x 36.9x
C Berger Paints ( 458.9) ( 44,558.9) ( 45,451.3) 7.5x 7.1x 48.3x 43.4x 89.6x 72.1x
D Pidilite Industries ( 1,354.2) ( 68,793.4) ( 69,051.9) 9.8x 9.4x 45.6x 42.8x 74.1x 63.9x
E Hindustan Unilever ( 2,013.0) ( 434,808.0) ( 432,592.0) 11.0x 10.7x 45.9x 42.5x 71.8x 65.6x

Mean 8.0x 7.7x 40.9x 37.9x 69.7x 59.6x

Median 8.6x 8.3x 45.7x 42.7x 72.9x 64.8x

A Asian Paints ( 1,530.0) ( 146,757.6) ( 147,917.9) 7.6x 7.2x 42.0x 37.8x 66.3x 55.4x

Low High Asian Paints

Industry Multiple ( 37.9) ( 42.7)
LTM EBITDA ( 3,914.7) ( 3,914.7) ( 3,914.7)
Implied TEV ( 148,473.3) ( 166,992.6)
Less: Debt ( 1,062.8) ( 1,062.8) ( 1,062.8)
Less: Non controlling interest ( 379.8) ( 379.8) ( 379.8)
Add: Cash & cash equivalents ( 282.3) ( 282.3) ( 282.3)
Implied Market cap ( 147,313.0) ( 165,832.4)
Divided by: Shares o/s ( 95.9) ( 95.9) ( 95.9) The stock in UNDERVALUED
Implied Share price ( 1,535.8) ( 1,728.9) BUY
[1] Author:
Number as per September 2019

[2] Author:
Number as per September 2019

[3] Author:
Number as per September 2019

[4] Author:
Number as per September 2019

[5] Author:
Number as per September 2019

[6] Author:
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[7] Author:
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[8] Author:
Number as per September 2019

[9] Author:
Number as per September 2019

[10] Author:
Number as per September 2019

[11] Author:
Number as per September 2019

[12] Author:
Number as per September 2019

[13] Author:
Number as per September 2019

[14] Author:
Number as per September 2019

[15] Author:
Number as per September 2019

[16] Author:
Number as per September 2019

[17] Author:
Number as per September 2019

[18] Author:
Number as per September 2019

[19] Author:
Number as per September 2019
[20] Author:
Number as per September 2019

[21] Author:
Number as per September 2019

[22] Author:
Number as per September 2019

[23] Author:
Number as per September 2019

[24] Author:
Number as per September 2019

[25] Author:
Assuming government comes up with a budget boosting up the infrastructure sector.

[26] Author:
Assuming high raw material purchases considering a massive fall in oil prices which indirectly benefits the
paint company

[27] Author:
With huge inventory carried over from the previous year, it can be considered that the company is not
purchasing more raw material

[28] Author:
With huge inventory carried over from the previous year, it can be considered that the company is not
purchasing more raw material

[29] Author:
Mentioned by the company in the transcript

[30] Author:
RBI debarred companies from paying dividends till further notice in FY 20.

[31] Author:
"As mentioned in the previous quarter, the CAPEX plan for the company for the current year is about Rs.
700 crores". However, due to the pandemic scenario. Since a major part of company expense is in
dividends and since RBI has stalled dividend payments for the company, it is assumed that the company
can use the spare cash for capex in sanitizers

[32] Author:
Liquidity crunch faced by all the companies leading to high receivable days

[33] Author:
Company guidance