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Financial Statement Analysis Of: Asian Paints Limited

Asian Paints Limited is India's largest and the world's second largest paint company by market capitalization. It manufactures a wide range of paints for decorative and industrial use. Asian Paints has a market share of 60% in decorative paints and 20% in automotive coatings in India. Over the past 5 years, the company's revenue has grown at 5.97% annually and net income has grown at 12.46% annually. Asian Paints operates 11 manufacturing facilities in India and 18 internationally through its subsidiaries serving customers in 65 countries.

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188 views

Financial Statement Analysis Of: Asian Paints Limited

Asian Paints Limited is India's largest and the world's second largest paint company by market capitalization. It manufactures a wide range of paints for decorative and industrial use. Asian Paints has a market share of 60% in decorative paints and 20% in automotive coatings in India. Over the past 5 years, the company's revenue has grown at 5.97% annually and net income has grown at 12.46% annually. Asian Paints operates 11 manufacturing facilities in India and 18 internationally through its subsidiaries serving customers in 65 countries.

Uploaded by

Preeti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Financial Statement Analysis of

Asian Paints Limited


Group Details
Group Number: 31

Roll No GR Number Name

BTECH - C - 69 11811321 Preeti

BTECH - D - 04 11810103 Rishabh Gupta

BTECH - D - 21 11811231 Shaswat Chand

BTECH - D - 68 11810949 Amisha Yelpale

BTECH - D - 74 11810540 Mayurakshi Zodage


1. About Asian Paints Limited

2. Manufacturing Locations

3. Company Overview

4. How Asian Paints became a Market


Leader

Contents 5. Income Statement

6. Balance Sheet

7. Cash Flow Statement

8. Key Metrics & Ratios

9. Conclusion
About Asian Paints Limited

● Asian Paints Limited was incorporated in the year 1942 and headquartered in Mumbai.

● India's largest, and World's 2nd largest paint company by market capitalization, INR 3.24 lakh crores (USD
45.13 billion, 2022).

● Asian Paints manufactures a wide range of paints for decorative and industrial use. The products of the company
include ancillaries, automotive, decorative paints and industrial paints.

● The company, along with their subsidiaries, has operations in 22 countries globally with 27 paint manufacturing
facilities servicing consumers in 65 countries.
Manufacturing Locations

11 manufacturing locations in India 18 international manufacturing locations under 6 subsidiaries

Kasna
Rohtak

Ankleshwar Visakhapatnam
Sarigam
Patancheru
Taloja

Khandala
Sriperumbudur

Mysuru Cuddalore
Company Overview

MARKET SHARE

Decorative Paints 60%


Automotive Coatings 20%
Company Overview

REVENUE MIX
Company Overview

REVENUE MIX
How Asian Paints became a
Market Leader
1. Strong and responsible management

2. Extensive use of latest technology

3. Well thought out and tested value creation model


Income Statement
An income statement is an important financial
statement used for reporting a company's financial
performance over a specific accounting period.

● Revenue has grown at a yearly rate of 5.97%.

● Net income has grown at a yearly rate of 12.46%.

EPS and DPS in ₹. Other numbers except Payout Ratio in ₹ cr


Balance Sheet
The term balance sheet refers to a financial statement that reports a company's assets,
liabilities, and shareholder equity at a specific point in time.
Liabilities
Shares outstanding numbers in cr. Other numbers in ₹ cr.
Assets
All numbers in ₹ cr.
Cash Flow
The term cash flow refers to the net amount of cash and cash equivalents being
transferred in and out of a company.

● Steady cash growth rate from operating profits.

● The company invests heavily in other businesses


from the cash in hand.

● Actively repaying debt.

● Over the last 5 years, free cash flow growth has


been 18.99%, vs industry average of 15.83%

All numbers in ₹ cr
Key Metrics

34.8% 35.4%
Return on Capital Employed Return on Invested Capital

58.6 days
Cash Conversion Cycle

27.3% 17.5%
Return on Equity Return on Assets
Ratios

1.19 2.90
Asset Turnover Ratio Inventory Turnover Ratio

0.11 1.87
Debt to Equity Ratio Current Ratio
Conclusion - SWOT Analysis
Conclusion - The Pandemic and Beyond

● During the pandemic, the company operated approximately 95% of sales offices, and its manufacturing facilities
operated at about 60-70% level.

● Comfortable cash flow position and strong liquidity, Asian Paints ability to service debt and other financing
arrangements remained unaffected.

● Boom in real estate and auto sectors due to low interest rates have helped the company in a major way.

● High inflation has affected the OPM of the company, but the management have taken adequate measures to tackle
the problem.

● Asian Paints continues to attract investments from all over the world making its stock an excellent consistent
compounder.

● Strong workforce makes them capable of continuing their dominance and leading the market in the eastern world.
References

https://en.wikipedia.org/wiki/Asian_Paints

https://www.asianpaints.com/about-us.html

https://www.asianpaints.com/more/investors/AnnualReportFY2021.html

https://www.screener.in/company/ASIANPAINT/consolidated/

https://www.tijorifinance.com/company/asian-paints-limited/
Thank You

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