ASIAN PAINTS 2023-24 Annual Report Analysis

Mon, 3 Jun

ASIAN PAINTS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ASIAN PAINTS Income Statement Analysis

• Operating income during the year fell 10.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.8% in FY24 as against 18.3% in FY23.
• Depreciation charges decreased by 14.4% and finance costs decreased by 20.1% YoY, respectively.
• Other income grew by 113.4% YoY.
• Net profit for the year grew by 26.8% YoY.
• Net profit margins during the year grew from 12.2% in FY23 to 17.2% in FY24.

ASIAN PAINTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	344,886	308,501	-10.5%
Other income	Rs m	3,865	8,246	113.4%
Total Revenues	Rs m	348,751	316,747	-9.2%
Gross profit	Rs m	63,048	70,304	11.5%
Depreciation	Rs m	8,580	7,345	-14.4%
Interest	Rs m	1,445	1,154	-20.1%
Profit before tax	Rs m	56,888	70,050	23.1%
Tax	Rs m	14,935	16,835	12.7%
Profit after tax	Rs m	41,953	53,216	26.8%
Gross profit margin	%	18.3	22.8
Effective tax rate	%	26.3	24.0
Net profit margin	%	12.2	17.2

Dear Reader: If You Invest in Midcap Stocks, this is for You

ASIAN PAINTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 62 billion as compared to Rs 79 billion in FY23, thereby witnessing an decrease of -21.2%.
• Long-term debt down at Rs 356 million as compared to Rs 762 million during FY23, a fall of 53.3%.
• Current assets fell 12% and stood at Rs 146 billion, while fixed assets rose 24% and stood at Rs 114 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 260 billion as against Rs 258 billion during FY23, thereby witnessing a growth of 1%.

ASIAN PAINTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	159,655	183,768	15.1
Current Liabilities	Rs m	78,959	62,210	-21.2
Long-term Debt	Rs m	762	356	-53.3
Total Liabilities	Rs m	257,793	259,819	0.8
Current assets	Rs m	165,352	145,532	-12.0
Fixed Assets	Rs m	92,442	114,287	23.6
Total Assets	Rs m	257,793	259,819	0.8

ASIAN PAINTS Cash Flow Statement Analysis

• ASIAN PAINTS's cash flow from operating activities (CFO) during FY24 stood at Rs 57 billion, an improvement of 36.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -23 billion, an improvement of 77.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -30 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 billion from the Rs 8 billion net cash flows seen during FY23.

ASIAN PAINTS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	41,934	57,378	36.8%
Cash Flow from Investing Activities	Rs m	-12,746	-22,632	-
Cash Flow from Financing Activities	Rs m	-21,401	-29,745	-
Net Cash Flow	Rs m	7,710	5,002	-35.1%

Current Valuations for ASIAN PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.5, an improvement from the EPS of Rs 43.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,886.1, stands at 51.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.1 times, while the price to sales ratio stands at 9.0 times.
• The company's price to cash flow (P/CF) ratio stood at 49.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	359.6	321.6
TTM Earnings per share	Rs	43.7	55.5
Diluted earnings per share	Rs	43.7	55.5
Price to Cash Flow	x	52.4	49.7
TTM P/E ratio	x	64.6	51.0
Price / Book Value ratio	x	18.5	16.4
Market Cap	Rs m	2,949,653	3,008,428
Dividends per share (Unadj.)	Rs	25.7	33.3

Ratio Analysis for ASIAN PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 2.1x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 61.7x during FY24, from 40.4x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 29.0% during FY24, from 26.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 38.7% during FY24, from 36.4% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 20.9% during FY24, from 16.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	2.1	2.3
Debtors’ Days	Days	5	4
Interest coverage	x	40.4	61.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.8	20.9
Return on equity	%	26.3	29.0
Return on capital employed	%	36.4	38.7

To see how ASIAN PAINTS has performed over the last 5 years, please visit here.

ASIAN PAINTS Share Price Performance

Over the last one year, ASIAN PAINTS share price has moved down from Rs 3,235.2 to Rs 2,886.1, registering a loss of Rs 349.1 or around 10.8%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for ASIAN PAINTS and quarterly results for ASIAN PAINTS)