Asian Paints Ltd. · NSE:ASIANPAINT

Asian Paints — FY2000-01 Earnings Presentation

28 slides from Asian Paints's earnings presentation, 2001

  1. Slide 1: Asian Paints (India) Limited Analyst Presentation

    1 Asian Paints (India) Limited Analyst Presentation Annual Results : Financial year 2000-01 Mr. Ashwin Dani Vice Chairman & Managing Director Asian Paints (India) Ltd

  2. Slide 2: Indian Economy: FY 2001

    2 Indian Economy: FY 2001 „ GDP growth at 6 per cent „ Expected to grow by 6-7 % in 2001-02 „ Manufacturing sector has registered growth of 5.2% „ Consumer goods sector has registered growth of 7.9 % „ Exports grew by 19.8 % (Apr - Mar’01) „ High export growth coupled with lower increase in imports

  3. Slide 3: The Paint Market

    3 The Paint Market „ Paint demand suppressed across most segments „ Earthquake in Gujarat and drought in certain districts of Rajasthan, Gujarat, Maharashtra & M.P has affected decorative paint demand „ Industrial slowdown affects industrial paint demand „ Value growth in decorative segment estimate

  4. Slide 4: Financial Performance FY 2001

    4 Financial Performance FY 2001 (In Rs. Mn) FY 01 FY 00 Growth % Gross Sales 14933 13416.4 11.3% Net Sales 11965.4 10661.7 12.2% PBDIT(w/o OI) 1911.2 1776.4 7.6% Interest 221.2 202.9 9.0 % Depreciation 315.8 278.4 13.4% Other income 184.7 135.8 36.0 % PBT 1558.9 1430.9 8.9% Tax 495.0 457.5 8.2 % PAT

  5. Slide 5: Dividend

    5 Dividend „ Interim Dividend of 30 % distributed in November’2000 on increased equity capital of Rs. 641.9 mn „ Final dividend of 40 % announced. „ Total dividend distributed in FY 01 is 70 % on increased capital of Rs. 641.9 mn

  6. Slide 6: Asian Paints in FY 2001

    6 Asian Paints in FY 2001 „ Volume growth of 11.8 % in Paints business „ Value growth of Paints business 12.4 % „ Chemical business volumes grow by 4.4 % „ Chemical business registers 10.5 % growth in value sales

  7. Slide 7: Important Ratios

    7 Important Ratios FY’01 FY’00 EBDITA/Net Sales 17.5 17.9 % PBT/ Net Sales 13.0 13.4 % PAT/ Net Sales 8.9 % 9.1 % EBIT/ Total Cap. Emp 27.9% 30.7 % Debt Equity Ratio 0.52 0.49

  8. Slide 8: Asian Paints in FY 2001

    8 Asian Paints in FY 2001 „ Operating profit margins at 17.5% compared to 17.9% in previous year „ PBT margins drop marginally to 13.0 % from 13.4 % in FY 00 „ Net profit margin at 8.9 % compared to 9.1% last year „ EBIT/CE lower at 27.9 % as compared to 30.7 % achieved in FY 00

  9. Slide 9: Asian Paints in FY 2001

    9 Asian Paints in FY 2001 „ ROCE lower than expectation due to „ Significant reduction in sales growth in later part of the year „ Increase in freight cost „ Increase in employee remuneration „ Increased write-off on account of ERP and SCM implementation

  10. Slide 10: Decorative Business Unit

    10 Asian Paints (India) Limited Decorative Business Unit

  11. Slide 11: Decorative Business Unit - FY 01

    11 Decorative Business Unit - FY 01 „ Sales volumes have increased 11.8 % „ Wall finishes segment grew by 11 % „ Wood Finish segment grew by 13 % „ Exterior segment posts 38 % growth „ “Colour Worlds” are our fastest growing dealers „ Total “Colour World” installed are 2100 „ 1250 “Colour Worlds” in

  12. Slide 12: Product launches

    12 Product launches „ ‘Tractor Emulsion’ paint launched in May „ National rollout will be completed during current financial year „ Positioned as an Economy Emulsion paint „ Upgradation alternative for the distemper user „ ‘OPAL’ - the premium polyurethane wood finish makes a good beginning „ Target

  13. Slide 13: Product launches

    13 Product launches „ ‘Utsav Enamel’ very well received „ Targeted at the rural populace „ ‘Utsav Acrylic Distemper’ performed well „ An interior paint providing value for money to contractors and available only in bulk packs

  14. Slide 14: Dealer Tinting Systems

    14 Dealer Tinting Systems 5% 7% „ Asian Paints has offered its existing brands on “Colour World” 19% „ This allows Asian Paints to 50% offer over 1000 shades on its existing brands „ Competition has created new brands for DTS 19% „ Significant inventory reduction APIL GNP Berger for the dealer ICI J

  15. Slide 15: Asian Paints Help Line

    15 Asian Paints Help Line …../- „ Asian Paints ‘Helpline’ operational in 14 cities „ Receives an enthusiastic response „ The information powerhouse to the consumer „ A step to bring the consumer closer to the company „ 90 % of the calls are converted to sales for the company „ Adds further value to

  16. Slide 16: Asian Paints Home Solutions

    16 Asian Paints Home Solutions …../- „ Asian Paints Home Solutions launched in Hyderabad & Kolkatta „ ‘Painting your home’ for you „ Pilot launches „ Asian Paints new website provides „ Greater interactivity with the user „ Painting solutions provided to the user „ Online officer to answer all queri

  17. Slide 17: Raw Material Scenario in FY 01

    17 Raw Material Scenario in FY 01 „ Raw material prices largely stable during the year

  18. Slide 18: Industrial & Chemicals Business Unit

    18 Asian Paints (India) Limited Industrial & Chemicals Business Unit

  19. Slide 19: Industrial & Chemicals Business Unit

    19 Industrial & Chemicals Business Unit „ Good performance by Industrial business „ CRP segment posts 18 % value growth „ Asian PPG Industries performs well inspite of the downturn in the automotive sector

  20. Slide 20: Chemicals Business

    20 Chemicals Business Chemicals business contribution to Net Sales is around 7 %. Share in total revenues coming down over the years „ Volume sales for the business in line with FY 00 level „ Margins under pressure due to higher material costs

  21. Slide 21: International Business Unit

    21 International Business Unit „ All overseas unit performed well „ New Branding strategy implemented across international ventures „ Sri Lankan unit is performing well „ Rationalisation of products and new products introduced to upgrade the Sri Lankan market „ Mauritius unit has commenced exports t

  22. Slide 22: Major Initiatives: FY 2001

    22 Major Initiatives: FY 2001 „ Supply Chain Planning Engine fully operational „ Completed implementation of ERP solution „ Major expansion of “Colour World” network during the year „ Significant cost economies achieved through, „ Effective Sourcing „ Improvement of plant yields

  23. Slide 23: Outlook - Negatives

    23 Outlook „ Current Macroeconomic expectations - Negatives „ Divestment pace too slow „ Weak trends continue in automobile, cement and some other core sectors „ Continuing infrastructure bottle necks „ Investment languishing due to adverse demand scenario

  24. Slide 24: Outlook - Positives

    24 Outlook „ Current Macroeconomic expectations - Positives „ Reduction in interest rates „ Deficit numbers close to Budget levels „ Forecast of ‘Normal’ monsoons Good monsoon critical for the paint industry

  25. Slide 25: Emerging Trends In The Paint Industry

    25 Emerging Trends In The Paint Industry „ Polarisation towards large companies „ Huge opportunity in terms of upgradation in rural/economy segment „ New emerging segment for High performance coatings „ Improved media reach enabling better marketing to rural masses „ Increased consumer involvement i

  26. Slide 26: Path Ahead

    7 Path Ahead ..../-

  27. Slide 27: Path Ahead

    27 Path Ahead „ Increased market share by Decorative India „ Focus on new market segments „ Large User Business „ Mainly in metros and mini-metros „ Specific products „ Dedicated sales force „ Focus on rural market „ Launch of new products „ Cost management initiatives „ Explore acquisitions in inte

  28. Slide 28: End

    28 End …/-

Asian Paints (India) — FY2000-01 Earnings Presentation on 6ix