Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — Asian Paints India — H1 FY2000 Earnings Presentation
17 slides from Asian Paints's earnings presentation, Sep 30, 1999
Slide 1: Financial Results for the period ended Sept 30, 1999
Asian Paints India Limited Financial Results for the period ended Sept 30, 1999 asian paints
Slide 2: Indian Economy: First Half FY2000
Indian Economy : First Half : FY’2000 • Apr-Sep 1999 GDP growth is encouraging • Industrial production remains buoyant ¾Cement despatches showing impressive growth rates ¾Automotive industry showing an upward trend • Inflation at historic low • Exports have started looking up asian paints
Slide 3: The Paint Market
The Paint Market • Demand conditions better compared to that in last year • Late Diwali has shifted season sales of decorative segment to second half of the year • Industrial paint segment is also showing an upward trend with better industrial growth rates asian paints
Slide 4: Financial Performance FY 2000
Financial Performance FY 2000 (In Lacs) 1H FY 99 1H FY 00 Growth % Gross Sales 59732 63648 6.56 % Net Net Sales 46391 50137 8.07 % PBDIT 6679 8376 25.41% Interest 1168 1208 3.42 % Depreciation 1200 1358 13.17 % PBT 4311 5810 34.77 % PAT 3232 3951 22.25 % asian paints
Slide 5: Asian Paints in 1H FY00
Asian Paints in 1H FY00 • Gross sales increases by 6.56 % to 636.48 crores • Net Sales register growth of 8.07 % over 1H FY98 at 501.37 crores • Gross profit increases by 34.77 % • Net profit increases by 22.25 % • Volume growth of 9.4% in Paints business • Chemical business registers 10.4 % growth
Slide 6: Decorative Business Unit
Decorative Business Unit • Sales volume up by 10.4 percent over 1H FY99 • ‘YTD - Oct’ will be a better indicator than ‘YTD- Sept’ ¾Part of seasonal sales in this year has shifted to October due to Diwali being in November • Wall Finishes and Exterior paints show good performance • Auto refinishes tr
Slide 7: Decorative Business Unit
Decorative Business Unit • “Colour Worlds” growth rates impressive ¾“Colour Worlds” installed around 600 ¾By Mar’00, total installation will be around 1000 • Apex, Utsav and Distempers show good growth rates • “Ace” - economy exterior emulsion launched all over India ¾Excellent response asian paints
Slide 8: The Raw Material Scenario
The Raw Material Scenario • Raw and packing material prices were stable during the period ¾Titanium dioxide price around US$ 1750- $1850 ¾Prices of oils have decreased sharply when compared to same period last year ÎHowever sharp increase in price of Castor oil from Aug ¾Prices of monomers are same
Slide 9: Cost management
Cost management Considerable economies were achieved through • Sourcing of materials • Improvement in plant yields • Optimisation of Supply Chain • Tight control on overheads asian paints
Slide 10: Growth Business Unit (Industrial & Chem)
Growth Business Unit (Industrial & Chem) • CRP registers good value growth • Powder coatings perform well • Low key performance by Coil coatings asian paints
Slide 11: Chemicals - Phthalic Anhydride
Chemicals - Phthalic Anhydride • Phthalic Anhydride prices at around Rs. 34 per Kg., up from Rs. 28 per Kg. in Sept ‘98 ¾Improved margins for Phthalic in the first half • Margins likely to be under pressure in the second half asian paints
Slide 12: Pentaerythritol
Pentaerythritol • Volume sales maintained at last year’s level • Value sales lower • Margins under pressure asian paints
Slide 13: Major Initiatives: April-Sep 1999
Major Initiatives : April-Sep 1999 • Implementation of Supply Chain Management tools • Units in Oman and Mauritius • Asian Paints (International) Ltd. established in Mauritius asian paints
Slide 14: Acquisition of Delmege Forsyth & Co. (Paints) Ltd
Acquired controlling stake in the second largest paint company in Sri Lanka, Delmege Forsyth & Co. (Paints) Ltd ¾Asian Paints will hold 76 % equity in this venture ¾Delmege controls 12 % of the Sri Lankan Paint market ¾Possesses strong brands and talented professionals ¾Acquisition cost around Rs 3.
Slide 15: Outlook
Outlook • Decorative segment is likely to register good growth rates • Increased RM and freight cost due to diesel price hike • Phthalic and Penta margins to be under pressure asian paints
Slide 16: Path forward
Path forward In the next six months….. • Expand Colour World • Implement SCM solution • Increased penetration of the rural market • Increased focus on Institutional sales asian paints
Slide 17: Thank You
Thank You asian paints