23 October 2015
2QFY16 Results Update | Sector:
Consumer
Asian Paints
BSE SENSEX
27,471
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val INRm/Vol ‘000
Free float (%)
Financials & Valuation (INR b)
Y/E MAR
Sales
EBITDA
Adj. PAT
Adj. EPS(INR)
EPS Gr. (%)
BV/Sh.(INR)
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
2015 2016E 2017E
140.1
20.6
14.2
14.8
15.8
49.4
32.4
34.6
57.8
17.3
152.6
24.9
17.4
18.2
22.4
58.2
35.5
38.1
47.2
14.7
175.4
29.6
20.7
21.6
18.7
68.9
35.6
38.9
39.8
12.4
S&P CNX
8,295
APNT IN
959.2
822.0/12.7
925 / 637
-1/11/29
1232
47.2
Downgrade to Neutral
No pick-up in demand; near-term risk-reward unfavorable
CMP: INR857
TP: INR860 (+1%)
Estimate change
TP change
Rating change
Asian Paints’ 2QFY16 results
were below estimates, with consolidated sales up 4%
YoY to INR37.3b (est. INR38.7b). Consolidate EBITDA was up 16% to INR 5.7b (est.
INR 6.6b) and adjusted PAT was up 15% to and INR4b (est. INR4.7b, a 15% miss).
Domestic decorative segment posted high-single digit volume growth,
albeit with
higher growth in lower-end portfolio (Putty and Distemper)—which impacted
realization growth. We note that 2Q16 revenue growth reflects portfolio mix shift
(higher salience of distempers), calendar shift (Diwali delayed by a month) and
sentiment impact due to erratic monsoon.
Gross margin expanded 260bp YoY
to 45.5% (est. 45.6%), led by benign raw
material costs. Higher other expenses (up 90bp YoY) and lack of operating
leverage curtailed EBITDA margin expansion to 160bp YoY to 15.3% (est. 17%).
Higher tax rate (up 50bp YoY) offset by higher other income (up 16% YoY) resulted
in 14.9% YoY PAT growth to INR4b (est. INR4.7b), a miss of ~15%.
Earnings Call takeaways:
a) APNT will benefit from low base + festive season
(Diwali demand) in 3Q16. b) Input costs expected to remain benign for two more
quarters– Tio2 prices have softened marginally in dollar terms. c) There was no
material change in dealer schemes YoY in 2QFQ16. d) FY16 capex: INR7b.
Valuation and view:
APNT continues to exhibit sharp volatility in its quarterly
performance. We cut our estimates ~4% to factor in 2QFY16 miss. We expect
3QFY16 to benefit from low base and festive demand. Our long-term preference
for APNT’s leadership positioning in the oligopolistic Decorative Paints industry is
unchanged. However, after the recent outperformance (outperformed 17% since
our upgrade in June’15), at 40x FY17E EPS, the near-term risk-reward looks
unfavorable. Thus, we downgrade to
NEUTRAL—notwithstanding
our positive
medium-term outlook on the sector and APNT in particular.
(INR Million)
4Q
4.0
34,904
6.9
15,485
44.4
10,339
29.6
5,146
14.7
15.8
102
672
870
5,242
1,698
32.4
3,544
110
3,410
14.7
1Q
12.0
35,780
7.6
16,319
45.6
9,939
27.8
6,380
17.8
24.0
89
693
1,190
6,788
2,113
31.1
4,674
122
4,552
34.4
FY16
2Q
3QE
5.0
16.0
37,306 41,252
4.0
14.5
16,984 18,935
45.5
45.9
11,263 12,025
30.2
29.2
5,720
6,910
15.3
16.8
16.1
29.5
92
111
709
712
1,063
958
5,982
7,044
1,836
2,187
30.7
31.1
4,146
4,857
156
122
3,990
4,735
14.9
28.6
FY15
FY16
4QE
12.0
7.0
11.3
38,224 140,054 152,561
9.5
11.3
8.9
17,397 60,339 69,634
45.5
43.1
45.6
11,464 39,785 44,691
30.0
28.4
29.3
5,933 20,554 24,943
15.5
14.7
16.3
15.3
10.2
21.4
104
348
397
711
2,659
2,825
1,019
3,498
4,229
6,136 21,044 25,950
1,907
6,495
8,044
31.1
30.9
31.0
4,229 14,549 17,906
122
322
489
4,107 13,952 17,417
20.5
13.5
24.8
FY15
1QE
10.0
38,737
8.0
17,664
45.6
11,079
28.6
6,585
17.0
34.4
80
722
1,106
6,890
2,136
31.0
4,754
74
4,679
34.7
Var.
(%)
-3.7%
-3.9%
Quarterly Performance (Consolidated)
Y/E March
Volume Growth % *
Net Sales
Cha nge (%)
Gross Profit
Gros s Ma rgi n (%)
Opera ti ng Expens es
% of Sa l es
EBITDA
Ma rgi n (%)
Cha nge (%)
Interes t
Depreci a ti on
Other Income
PBT
Ta x
Effecti ve Ta x Ra te (%)
PAT before Minority
Mi nori ty Interes t
Adjusted PAT
Cha nge (%)
E: MOSL Es ti ma tes
1Q
11.0
33,254
18.0
13,945
41.9
8,799
26.5
5,146
15.5
16.4
78
646
893
5,315
1,590
29.9
3,725
87
3,387
23.1
FY15
2Q
3Q
10.0
3.0
35,868 36,028
16.3
5.6
15,399 15,511
42.9
43.1
10,473 10,174
29.2
28.2
4,925
5,337
13.7
14.8
2.6
7.2
70
98
669
673
917
818
5,103
5,384
1,541
1,667
30.2
31.0
3,563
3,717
90
35
3,473
3,682
6.3
11.8
-13.1%
-13.2%
-14.7%
Gautam Duggad
(Gautam.Duggad@MotilalOswal.com); +91 22 3982 5404
Manish Poddar
(Manish.Poddar@MotilalOswal.com); +91 22 3027 8029
Investors are advised to refer through disclosures made at the end of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

Asian Paints
Key quarterly charts
Exhibit 1: Consol. Sales up 4% YoY
Sales (INR b)
26.1
16.1
30.3
18.6
6.0
11.1
26.9
28.2
30.8
18.1
34.1
12.5
32.7
21.4
Sales Growth (%)
33.3 35.9 36.0
18.0
16.3
5.6
6.9
7.6
4.0
34.9
35.8
37.3
Source: Company, MOSL
Exhibit 2: No pricing actions initiated in 2QFY16
Price Increase/Decrease(%)
4.36
4.15
3.2
2.6 2.9
2.45
2.2 2.0
1.82.1 1.2
1.33
1.2 1.0
1.2
1.15 1.0
1.0
0.4
-0.25
-2.0
Exhibit 3: Domestic Decorative Paints volumes up ~7%
13
10
5
3
Volume Growth (%)
12
12 11
7
10
4
12
7
4
Source: Company, MOSL
Source: Company, MOSL
Exhibit 4: Gross margin expanded 260bp YoY..
Gross Margin (%)
Exhibit 5: ..driving 160bp YoY EBITDA margin expansion
EBITDA Margin (%)
Source: Company, MOSL
Source: Company, MOSL
Exhibit 6: Consol. employee expenses up marginally YoY
Employee expenses (%)
Exhibit 7: ..while other expenses were up 90bp YoY
Other expenses (%)
Source: Company, MOSL
23 October 2015
Source: Company, MOSL
2

Asian Paints
Exhibit 8: Consol PAT up 14.9%, 15% below estimates
PAT (INR b)
36.7
2.8
18.4
6.3
-1.8
3.3
3.0
3.6
3.5
PAT growth (%)
32.2
25.1
11.8
13.8
14.9
30.5
14.6
2.5
3.3
2.4
3.4
-3.2 -4.6
3.7
3.4
4.6
4.0
Source: Company, MOSL
Exhibit 9: Quarterly Performance (Standalone)
Y/E March
1Q
Net Sales
Change (%)
Raw Material/PM
Gross Profit
Gross Margin (%)
Operating Expenses
% of Sales
EBITDA
Margin (%)
Change (%)
Interest
Depreciation
Other Income
PBT
Tax
Effective Tax Rate (%)
Adjusted PAT
Change (%)
23,011
12.6
12,948
10,062
43.7
6,056
26.3
4,006
17.4
1.5
48
530
708
4,136
1,297
31.3
2,839
3.4
FY14
2Q
25,049
17.6
14,077
10,972
43.8
6,680
26.7
4,293
17.1
31.9
62
515
750
4,466
1,360
30.4
3,106
38.8
3Q
28,077
11.4
16,661
11,415
40.7
6,992
24.9
4,424
15.8
0.9
64
540
701
4,521
1,446
32.0
3,075
-1.5
4Q
26,866
21.3
15,713
11,153
41.5
7,288
27.1
3,865
14.4
14.1
88
538
765
4,004
1,233
30.8
2,770
15.6
1Q
27,069
17.6
15,562
11,506
42.5
6,949
25.7
4,557
16.8
13.8
43
547
828
4,795
1,455
30.3
3,340
17.6
FY15
2Q
29,535
17.9
16,539
12,996
44.0
8,607
29.1
4,389
14.9
2.2
64
564
927
4,688
1,431
30.5
3,257
4.9
3Q
29,791
6.1
16,697
13,094
44.0
8,153
27.4
4,941
16.6
11.7
78
565
831
5,128
1,598
31.2
3,531
14.8
4Q
28,462
5.9
15,600
12,862
45.2
8,262
29.0
4,600
16.2
19.0
86
555
902
4,860
1,578
32.5
3,282
18.5
FY16
1Q
28,963
7.0
15,411
13,552
46.8
7,912
27.3
5,641
19.5
25.2
28
576
1,180
6,217
1,939
31.2
4,278
28.1
2Q
30,201
2.3
16,116
14,086
46.6
9,142
30.3
4,944
16.4
12.7
45
584
1,028
5,343
1,698
31.8
3,645
11.9
Source: Company, MOSL
Exhibit 10: Standalone sales grew 2.3% led by ~7% decorative volume growth
19.9
15.6
7.1
12.6
Sales Growth (%)
21.3
17.6
11.4
6.1
5.9
7.0
2.3
Sales (INR b)
17.6
17.9
Source: Company, MOSL
23 October 2015
3

Asian Paints
Exhibit 11: S/L Gross margin expanded 260bp YoY..
Gross Margin (%)
Exhibit 12: ..while EBITDA margin expanded 150bp YoY
EBITDA Margin (%)
Source: Company, MOSL
Source: Company, MOSL
Exhibit 13: Employee expenses were flat YoY
Employee expenses (%)
5.9
4.6
3.9
4.7
4.8
4.5
3.8
5.7
5.6 5.3
5.3
5.2 5.1
Exhibit 14: Other expenses were up 120bp YoY
23.5
20.6
19.9
25.0
Other expenses (%)
23.9
23.8
23.3
22.2
21.9
21.6
20.4
20.4
20.3
Source: Company, MOSL
Source: Company, MOSL
Exhibit 15: Standalone PAT registered 11.9% YoY growth
PAT (INR b)
38.8
24.6
2.4
5.1
2.2
3.1
-2.1
3.4
2.8
3.1
3.1
-1.5
2.8
3.3
15.6
PAT Growth (%)
28.1
17.6
4.9
3.3
3.5
3.3
4.3
14.8
18.5
11.9
3.6
Source: Company, MOSL
Exhibit 16: Subsidiary Quarterly Performance [Imputed]
INR m
2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16
Sales
5,792
6,050 5,798 6,186 6,333
6,237 6,442 6,816
7,104
EBITDA
509
556
580
640
512
396
546
740
776
EBITDA margin (%)
8.8
9.2
10.0
10.3
8.1
6.3
8.5
10.9
10.9
PAT
162
219
204
299
216
151
11
274
345
Source: Company, MOSL
23 October 2015
4

Asian Paints
Exhibit 17: Segmental Performance
INR m
Segment Revenue
Paints
Home Improvement
Total
EBIT
Paints
Home Improvement
Total
Capital Employed
Paints
Home Improvement
Total
EBIT Margin (%)
Paints
Home Improvement
Total
1QFY15
27,524
31
27,555
4,727
(13)
4,714
24,439
717
25,156
17.2%
-42.5%
17.1%
2QFY15
29,858
259
30,118
4,964
(1)
4,964
23,510
651
24,162
16.6%
-0.2%
16.5%
3QFY15
30,150
241
30,390
5,584
(52)
5,532
28,229
672
28,901
18.5%
-21.7%
18.2%
4QFY15
28,765
290
29,055
5,327
(32)
5,295
29,823
655
30,477
18.5%
-11.2%
18.2%
1QFY16
29,366
237
29,603
6,305
(53)
6,252
28,654
576
29,230
2QFY16
30,688
224
30,912
5,760
(102)
5,657
30,986
566
31,552
21.5%
18.8%
-22.5%
-45.7%
21.1%
18.3%
Source: Company, MOSL
Earnings Call Takeaways
Decorative paint volume growth is in high single digits for 2Q16.
Delayed festive season (shift in Diwali to November in CY15) and monsoon
failure – could be some of the reasons for lower revenue growth. Typically
2Q+3Q should be looked in combination due to changes in festive season
timelines.
There was no material change in dealer schemes YoY in 2Q.
September was better vs. August in terms of Retail demand.
3Q16: Will benefit from low base + Festive season (Diwali demand).
Product mix: Putti continuing to do well – small stakeholder, so potential is high.
For the quarter, Putty has shown higher growth vs. rest of the portfolio.
Not witnessing significant downtrading in Paints.
Lower end distempers have done well – had done a refocusing strategy in late
CY14 in Distempers.
RM expected to remain benign – Tio2 prices have softened marginally in dollar
terms.
Delayed monsoon may continue to hurt demand however festive season should
provide uptick.
Painting cycle: cycle is shorter for rented homes.
Subsidiary EBITDA growth superior due to contribution from Ethiopia subsidiary.
Nepal: Pick-up in sales post-earthquake.
FY16 capex: INR 7 bn.
23 October 2015
5

Asian Paints
Valuation and view
APNT continues to exhibit sharp volatility in its quarterly performance. We cut
our estimates 5% to factor in 2Q16 miss. While volume growth in domestic
decorative paints at 7-8% was healthy, combination of down-trading (higher
growth in putty and lower end distempers) and higher discounts impacted the
revenue growth. We note that APNT has passed on only 2% price cuts so far
despite the sharp correction in crude and other commodity prices. Sensitivity of
demand/volumes to price cuts in Paints industry is limited in our view as cost of
paints is typically ~50% of total painting costs and repainting cycle of 5-6 years
ensures that customer is not swayed by minimal changes in Paint cost.
We expect 3Q16 to benefit from low base and festive demand. Due to
mismatch in festival timings YoY, ideally 2Q and 3Q performance should be
looked in summation, in our view.
Our long term preference for APNT’s leadership positioning in oligopolistic
Decorative Paints industry is unchanged. APNT offers a compelling long term
play in discretionary consumption space backed by favorable income and
demographic factors.
However, after recent outperformance (outperformed 17% since our upgrade in
June’15), and at 40x FY17 EPS, the near term risk-reward is unfavorable, in our
view. Thus, we downgrade to NEUTRAL, notwithstanding our positive medium
term outlook on the sector and APNT in particular.
Weak rural demand due to deficient monsoon is a potential downside risk.
Further correction in Ti02 prices presents upside risk.
Exhibit 18: Revise
estimates
downwards by 5%
INR m
Sales
EBITDA
PAT
New
FY16E
152,561
24,943
17,417
Old
FY17E
175,439
29,609
20,673
FY16E
156,263
26,014
18,306
FY17E
179,779
30,921
21,712
Change
FY16E
FY17E
-2.4%
-2.4%
-4.1%
-4.2%
-4.9%
-4.8%
Source: Company, MOSL
Exhibit 19: APNT historical P/E (x)
55.0
45.0
35.0
25.0
15.0
5.0
9.0
26.9
PE (x)
Peak(x)
Avg(x)
46.7
Min(x)
40.6
Exhibit 20: APNT P/E premium vs. Sensex
240
160
80
0
-80
64.8
Asian Paints PE Relative to Sensex PE (%)
LPA (%)
155.4
Source: Company, MOSL
Source: Company, MOSL
23 October 2015
6

Asian Paints
Story in charts
Exhibit 21: Revenues to post 18.5% CAGR over FY15-17E
Sales (INR b)
24.0
22.3
15.6
24.3
13.3
15.7
11.3
8.9
15.0
5.0
Sales growth (%)
10.0
9.6
6.1
Exhibit 22: Weighted average price increase of 0.4% FY15
Price growth (%)
11.9
0.4
FY09
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E
FY10
FY11
FY12
FY13
FY14
FY15
Source: Company, MOSL
Source: Company, MOSL
Exhibit 23: Gross margin to expand 240bp over FY15-17E
Gross Margin (%)
43.8
42.1
39.8
38.3
41.0
41.7
43.1
45.6
45.5
Exhibit 24: EBITDA margin expand 220bp over FY15-17E
EBITDA Margin (%)
18.4
17.2
15.4
12.3
15.3
14.8
14.7
16.3
16.9
FY09
FY10
FY11
FY12
FY13
FY14
FY15 FY16E FY17E
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E
Source: Company, MOSL
Source: Company, MOSL
Exhibit 25: PAT to post 20.5% CAGR over FY15-FY17E
PAT (INR b)
107.9
PAT growth (%)
Exhibit 26: Return Ratios (x)
57.3
RoE (%)
43.3
36.7
12.7
FY13
22.4
18.7
40.1
36.3
33.1
32.4
34.0
34.7
-3.9
FY09
FY10
1.0
FY11
17.3
FY12
10.3
FY14
15.8
FY15 FY16E FY17E
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16E FY17E
Source: Company, MOSL
Source: Company, MOSL
23 October 2015
7

Asian Paints
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
Raw Materials
Gross Profit
Margin (%)
Operating Expenses
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income
Profit before Taxes
Change (%)
Margin (%)
Tax
Deferred Tax
Tax Rate (%)
PBT Before Minority
Minority Interest
Adjusted PAT
Change (%)
Margin (%)
Exceptional/Prior Period inc
Reported PAT
FY10
66,809
22.3
37,580
29,230
43.8
16,956
12,274
83.2
18.4
836
285
1,405
12,559
102.4
18.8
3,676
55
29.7
8,828
483
8,345
107.9
12.5
12
8,356
FY11
77,223
15.6
44,746
32,477
42.1
19,196
13,281
8.2
17.2
1,131
232
680
12,597
0.3
16.3
3,502
282
30.0
8,813
381
8,432
1.0
10.9
0
8,432
FY12
95,983
24.3
57,770
38,213
39.8
23,465
14,749
11.1
15.4
1,211
410
1,413
14,541
15.4
15.1
4,274
61
29.8
10,206
319
9,887
17.3
10.3
0
9,887
FY13
108,744
13.3
64,130
44,614
41.0
27,936
16,677
13.1
15.3
1,546
367
1,788
16,552
13.8
15.2
4,364
593
29.9
11,595
456
11,139
12.7
10.2
0
11,139
FY14
125,816
15.7
73,407
52,409
41.7
33,762
18,647
11.8
14.8
2,457
422
2,674
18,442
11.4
14.7
5,378
338
31.0
12,727
440
12,288
10.3
9.8
-100
12,188
FY15
140,053
11.3
79,715
60,339
43.1
39,759
20,579
10.4
14.7
2,659
348
3,472
21,045
14.1
15.0
6,576
-81
30.9
14,549
322
14,227
15.8
10.2
-276
13,952
FY16E
152,561
8.9
82,927
69,634
45.6
44,691
24,943
21.2
16.3
2,825
397
4,229
25,950
23.3
17.0
7,655
389
31.0
17,906
489
17,417
22.4
11.4
0
17,417
(INR Million)
FY17E
175,439
15.0
95,689
79,750
45.5
50,141
29,609
18.7
16.9
3,227
439
4,933
30,876
19.0
17.6
9,108
463
31.0
21,305
632
20,673
18.7
11.8
0
20,673
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Other Liability
Minority Interest
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Investments
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Godwill on Cons.
Application of Funds
E: MOSL Estimates
FY10
959
16,141
17,100
2,292
562
945
20,899
15,004
6,276
8,728
4,072
6,241
18,437
9,559
5,425
1,058
2,395
16,947
7,183
6,613
3,150
1,490
367
20,899
FY11
959
20,915
21,874
2,334
979
1,099
26,287
19,878
7,151
12,727
433
4,290
28,284
13,054
5,731
6,262
3,237
19,819
10,874
5,277
3,668
8,465
372
26,287
FY12
959
26,526
27,485
3,411
1,063
1,367
33,326
21,043
8,453
12,590
6,171
3,547
34,398
15,989
7,813
6,243
4,354
23,796
12,625
6,722
4,449
10,602
415
33,326
FY13
959
32,884
33,843
2,510
1,638
1,608
39,598
33,851
9,884
23,967
592
2,957
39,887
18,303
9,809
7,367
4,408
28,247
14,416
8,438
5,394
11,639
442
39,598
FY14
959
39,433
40,392
2,492
1,970
2,460
47,314
36,621
12,419
24,202
716
14,236
40,187
20,699
11,103
2,290
6,095
33,441
17,457
9,298
6,686
6,746
1,414
47,313
FY15
959
46,465
47,424
4,182
1,911
2,637
56,153
38,664
14,522
24,142
1,960
15,878
44,685
22,585
11,799
2,044
8,257
32,970
15,488
9,892
7,591
11,714
2,458
56,153
FY16E
959
53,963
54,922
4,182
2,317
3,125
64,545
45,664
17,347
28,317
1,960
17,231
53,220
23,825
12,957
7,085
9,353
38,297
18,176
10,892
9,229
14,923
2,458
64,890
(INR Million)
FY17E
959
63,186
64,145
4,182
2,799
3,757
74,883
50,664
20,574
30,090
1,960
26,723
59,351
27,878
15,381
5,492
10,599
44,506
20,973
11,994
11,539
14,845
2,458
76,076
23 October 2015
8

Asian Paints
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Debtor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
FY10
8.7
9.6
17.8
3.2
31.0
FY11
8.8
10.0
22.8
3.7
36.4
FY12
10.3
11.6
28.7
4.6
38.8
FY13
11.6
13.2
35.3
5.4
39.6
FY14
12.8
15.4
42.1
6.2
41.4
FY15
14.8
17.6
49.4
7.3
41.1
FY16E
18.2
21.1
57.3
9.7
45.4
FY17E
21.6
24.9
66.9
11.9
47.3
98.5
89.5
12.2
66.6
48.1
0.4
97.5
86.0
10.5
61.3
37.6
0.4
83.1
74.1
8.5
55.3
29.9
0.5
73.8
64.8
7.5
48.8
24.3
0.6
66.9
55.8
6.4
43.3
20.4
0.7
57.8
48.7
5.8
39.3
17.3
0.8
47.2
40.6
5.3
32.1
15.0
1.1
39.8
34.4
4.5
26.8
12.8
1.4
57.3
61.3
43.3
51.5
40.1
45.4
36.3
41.5
33.1
37.3
32.4
34.6
34.0
36.6
34.7
37.8
30
6.5
27
3.6
30
4.1
33
3.1
32
4.1
31
3.9
31
3.5
32
3.9
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Depreciation
Net interest
Direct Taxes Paid
(Incr)/Decr in WC
CF from Operations
Incr in FA
Pur of Investments
CF from Invest.
Issue of Shares
Incr in Debt
Dividend Paid
Int./Div. Received
Interest Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
FY10
12,559
836
-1,120
-3,676
3,530
12,129
-3,541
-5,457
-8,998
0
-794
-3,023
1,405
-285
-1,479
-4,176
-1,045
2,104
1,059
FY11
12,597
1,131
-448
-3,502
-1,771
8,007
-1,235
1,951
717
0
42
-3,571
680
-232
-440
-3,521
5,204
1,058
6,262
FY12
14,541
1,211
-1,004
-4,274
-2,156
8,318
-6,903
742
-6,161
0
1,077
-4,459
1,413
-410
202
-2,177
-19
6,262
6,243
FY13
16,552
1,546
-1,421
-4,364
87
12,400
-7,230
591
-6,639
0
-902
-5,155
1,788
-367
-2
-4,638
1,123
6,243
7,367
FY14
18,442
2,457
-2,252
-5,378
-184
13,086
-2,894
-11,279
-14,173
0
-18
-5,904
2,674
-422
-320
-3,990
-5,077
7,367
2,290
FY15
21,045
2,659
-3,124
-6,576
-5,215
8,789
-3,287
-1,642
-4,930
0
1,690
-6,981
3,472
-348
-1,940
-4,106
-247
2,290
2,043
FY16E
25,950
2,825
-3,832
-7,655
1,832
19,121
-7,000
-1,353
-8,353
0
0
-9,259
4,229
-397
-300
-5,727
5,041
2,044
7,084
(INR Million)
FY17E
30,876
3,227
-4,494
-9,108
-1,514
18,988
-5,000
-9,492
-14,492
0
0
-11,447
4,933
-439
865
-6,088
-1,592
7,085
5,492
23 October 2015
9

Asian Paints
Corporate profile: Asian Paints
Company description
Asian Paints is India's largest paint manufacturer
and marketer, with a dominant share in the
decorative segment. For the industrials and
automotive segment, it has a JV with PPG of the
US. Asian Paints acquired Berger International of
Singapore to expand its operations in other
markets in Asia, the Middle East and the Caribbean.
Exhibit 18: Sensex rebased
Exhibit 28: Shareholding pattern (%)
Jun-15
Promoter
DII
FII
Others
52.8
9.9
17.0
20.4
Mar-15
52.8
8.8
18.1
20.3
Jun-14
52.8
9.2
18.3
19.7
Exhibit 29: Top holders
Holder Name
Life Insurance Corpn.Of India
Ojasvi Trading Private Limited
% Holding
5.4
4.9
Note: FII Includes depository receipts
Exhibit 30: Top management
Name
Ashwin Choksi
Ashwin Dani
K B S Anand
Jayesh Merchant
Designation
Chairman
Vice Chairman
Managing Director & CEO
Company Secretary
Exhibit 31: Directors
Name
Ashwin Choksi
Ashwin Dani
K B S Anand
Jayesh Merchant
Amar Vakil
Mahendra Choksi
S Sivaram*
S Ramadorai*
*Independent
Name
Dipankar Basu*
Mahendra Shah*
Deepak Satwaleka*r
Malav Dani
M K Sharma*
Vibha Paul Rishi*
Amrita Vakil
Exhibit 32: Auditors
Name
BSR & Co LLP
Shah & Co
RA & Co
Type
Statutory
Statutory
Cost Auditor
Exhibit 33: MOSL forecast v/s consensus
EPS
(INR)
FY16
FY17
MOSL
forecast
18.2
21.6
Consensus
forecast
19.4
22.3
Variation
(%)
-6.0
-2.9
23 October 2015
10

Asian Paints
NOTES
23 October 2015
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