Asian Paints Ltd. · NSE:ASIANPAINT
Asian Paints — H1 FY2007 Earnings Presentation
25 slides from Asian Paints's earnings presentation, Oct 30, 2006
Slide 1: Investor Presentation Q2 & H1 - FY 2007
1 Investor Presentation Q2 & H1 - FY 2007 October 30, 2006
Slide 2: Presentation structure
2 Presentation structure • Results : Q2 & H1– FY 2007 • Review of Business Units • Outlook and Risks : FY 2007
Slide 3: Highlights: Q2 & H1 FY2007
3 Highlights : Q2 & H1– FY2007 • Consolidated sales have grown by 26.2% for Q2 and 22.2% for H1. – Sales are driven by good volume growth in paints. – All business units except Chemicals record value growth in Q2 in excess of 20%. – Good growth in Decorative BU and Middle East. • Early Diwali this y
Slide 4: Highlights: Q2 & H1 FY2007
4 Highlights : Q2 & H1– FY2007 • Group profit (PBDIT) has increased by 24.9% for Q2 and 25.4% for H1. – Paint margins under pressure due to rising RM prices, partially offset by price increases taken in the later part of Q2. – Chemicals division records good profits due to higher price realization.
Slide 5: Consolidated P&L – Q2 FY07
Consolidated P&L — Q2 FY0O7 CRs. in millions) Q2 06-07 Q2 05-06 Sales & Op Income Other Income Total Income PBDIT Interest Depreciation PBT after goodwill Curr.,Def. & FB. Tax PAT PAT after Minority interest EPS 9,981 98 10,079 1,438 50 149 1,239 388 852 827 8.62 7,907 68 7,975 1,152 29 145 963 369
Slide 6: Consolidated P&L – H1 FY 2007
6 Consolidated P&L – H1 FY 2007
Slide 7: Consolidated Sales breakup: Q2 & H1 FY 2007
7 Consolidated Sales breakup : Q2 & H1 FY 2007 * Includes APICL & 50 % of Asian PPG Industries sales
Slide 8: Standalone P&L – Q2 FY07
Standalone P&L — Q2 FY07 (Rs. in millions) Q2 06-07! Q2 05-06) Gr % Sales & Op Income 7,849 6,192 26.8% Other Income 101 71 40.7% Total Income 7,950 6,264| 26.9% PBDIT 1,304 1,077} 21.0% Interest 18 9 99,996 Depreciation 115 113 1.596 PBT 1,171 956| 22.6% PAT Vif 629| 23.6% Prior period (2) (17) PAT
Slide 9: Standalone P&L: H1 FY2007
Standalone P&L : Hil FY2007 (Rs. in millions) H1 06-07 H1 05-06| Gr % Sales & Op Income 13,883 11,292 22.9%6 Other Income 164 132 24.6% Total Income 14,047 11,424} 23.0% PBDIT 2,307 1,866| 23.6% Interest 31 14} 114.396 Depreciation 224 224 0.396 PBT 2,052 1,628| 26.0% PAT 1,357 1,071] 26.7% Prior pe
Slide 10: Standalone Cash Flow
10 Standalone Cash Flow • YoY Operating profit is higher by 23.5% and operating cash flow is higher by 111% due to cash generation from working capital. • Purchase of assets in the current year mainly includes capex on Taloja project and Sriperumbudur 2nd phase. • Estimated capex for the year is Rs
Slide 11: Dividend
11 Dividend • Interim dividend of 55% for the FY 2007 • Interim dividend of 45% distributed for the FY 2006 • Total dividend of 125 % distributed for FY 2006 including one-time special dividend of 25% – Dividend payout ratio was 73.2% in FY2006
Slide 12: Presentation structure
12 Presentation structure • Results : Q2 & H1– FY 2007 • Review of Business Units • Outlook and Risks : FY 2007
Slide 13: Review of Business Units
13 Review of Business Units • Decorative Business - India • Industrial Operations - India • International Operations
Slide 14: Asian Paints – Decorative Business Unit
14 Asian Paints – Decorative Business Unit • Demand was buoyant in almost all segments of the decorative coatings business in India – Growth in all categories of emulsion paints is impressive – Early Diwali and price increase of 1st October has advanced sales – All regions saw good growth. However,
Slide 15: Asian Paints – Decorative Business Unit
15 Asian Paints – Decorative Business Unit • Sales Price increases effected in H1: – 0.7% in June ‘06 (mainly in solvent based products) – 1.7% on 1st Sep (mainly in solvents based products) – 0.5% on 1st Oct (mainly in emulsion paints) – So far, price increases have been absorbed by the market. • T
Slide 16: Decorative Business Unit – New Products
16 Asian Paints – Decorative Business Unit • New Products – “Apex Ultima”, the premium exterior emulsion launched last year continues to do well – Luxury Ultra Gloss Enamel & Premium Semi Gloss Enamel (Water Based) launched in a few markets. – “Utsav” range of products is now a full offering at the
Slide 17: Asian Paints Consolidated Results H1 – FY 2007
17 Asian Paints Consolidated Results H1 – FY 2007 • Decorative Business - India • Industrial Operations - India • International Operations
Slide 18: Industrial Operations
18 Industrial Operations • Industrial business grew by over 20% in H1 FY’07. – Good growth seen in automotive, powder and road marking segment. – Powder coatings grew in excess of 30% – Sales for automotive JV (APPG) increased by 19% – Margins under pressure due to high material cost • APPG acquired
Slide 19: Asian Paints Consolidated Results H1 – FY 2007
19 Asian Paints Consolidated Results H1 – FY 2007 • Decorative Business - India • Industrial Operations - India • International Operations
Slide 20: International Operations: H1 FY2007
20 International Operations : H1 FY2007 • International operations recorded good growth in H1, FY 2007. – Value sales increased by 18.1% to Rs 2,957 mn. – The Middle East region registered sales growth in excess of 30%. SCIB, Egypt has been growing in excess of 50%. • Berger International reported 1
Slide 21: Region wise Sales Breakup
21 Region wise Sales Breakup H1 - FY'07 H1 - FY'06 Middle Middle East Caribbe East Caribbe 37.8% an 34.1% an 19.9% 21.9% South South South Pacific South Asia Pacific 20.5% S.E. Asia S.E. 8.0% 21.3% Asia 8.6% Asia 13.1% 14.7%
Slide 22: Presentation structure
22 Presentation structure • Results : Q2 & H1– FY 2007 • Review of Business Units • Outlook and Risks : FY 2007
Slide 23: Indian operations
23 Indian operations • GDP growth estimated at 8% for FY07. Paint industry expected to grow by about 14% by volume. • In decorative paints, emphasis would continue to be to drive top-line growth. Demand expected to be good in Q3 & Q4. However, growth likely to be lower than first half since there wa
Slide 24: International Operations
24 International Operations • International operations is expected to grow by 15% in value terms – Focus is on increasing market share through initiatives viz. new product introductions & dealer tinting systems. – Steps have been taken to reduce losses in South East Asia and South Asia regions.
Slide 25: Thank you...
Thank you... asianpaints