INCOME STATEMENT (in INR mn)

INCOME
Sales and operating income (Net of discs)
Less: Excise duty
TOTAL SALES
EXPENDITURE
Material Cost
Employee Cost
SG&A costs
PROFIT BEFORE INT, DEP,TAX AND EXC ITEMS
Less : Interest
Less : Depreciation/Amortisation
Add: Other Income
PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS
Add/(Less) : Exceptional Item
PROFIT BEFORE TAX AND PRIOR PERIOD ITEMS
(Less) : Prior period items (Net)
PROFIT BEFORE TAX
Less: Provision for Taxation:
Current Tax
Deferred Tax (Refer Note B - 8 in Schedule M)
Fringe Benefit Tax
Excess (Tax) Provision for earlier years
PROFIT AFTER TAX
Less: Minority Interest
NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS
Add : Balance brought forward from previous year
AMOUNT AVAILABLE FOR APPROPRIATION
APPROPRIATIONS
Dividend to shareholders of parent company:
Equity Shares - Interim dividend
Proposed Final dividend
Tax on Dividend (includes tax on proposed div)
Transfer to General Reserve
Balance carried to Balance Sheet
Per share data
EPS (Rs.) Basic and Diluted - before exc item
EPS (Rs.) Basic and Diluted - after exc item
DPS (Rs)
No of shares - eop
Key Figures

10
2000

2001

6066.59
(474.97)
5591.62

8424.77
(622.56)
7802.21

(5035.27)

(7198.58)

556.35
(349.60)
(175.72)
74.35
105.38

603.63
(413.33)
(206.42)
145.91
129.79

105.38
121.57
226.95

129.79
108.04
237.82

(0.40)
0.00
0.00
(1.82)
224.73

(5.40)
0.00
0.00
9.23
241.65

224.73

241.65

224.73

241.65

(35.33)
(6.37)
(75.00)
108.04

(44.60)
(3.83)
(100.00)
93.22

Gross Profit
EBITDA
Operating Profit (EBIT)
PBT
Net Income

556.35
556.35
380.63
226.95
224.73

603.63
603.63
397.21
237.82
241.65

Margins
Gross Profit
EBITDA
Operating Profit (EBIT)
PBT
Net Income

9.95%
9.95%
6.81%
4.06%
4.02%

7.74%
7.74%
5.09%
3.05%
3.10%

Purchases
Assumptions
Sales (Growth - YoY)
Material Cost (as a % of Sales)
Overheads
Employee Cost (as a % of sales)
SG&A costs (as a % of sales)
Other income (Growth - YoY)
Other income (as a % of sales)
Effective Tax Rate
Dividend Payout Ratio
Divident Tax Rate
Minority Interest as % of PAT

0.08
0.92

1.33%
-0.98%

96.26%
1.87%
1.61%

2002

2003

2004

2005

2006

2007

2008

2009

12,736.96
(1,034.31)
11,702.65

16,178.90
(1,189.35)
14,989.55

19,434.40
(1,337.25)
18,097.15

26,287.66
(1,398.89)
24,888.77

36,405.44
(1,225.60)
35,179.84

8,648.18

9,686.07

8,648.18

9,686.07

9,456.65
(864.64)
8,592.01

(7,797.17)

(8,497.67)

(7,009.31)

(10,013.87)

(13,013.18)

(15,156.02)

(20,536.11)

(31,308.22)

851.01
(411.05)
(255.80)
28.66
212.82

1,188.40
(402.50)
(237.52)
93.30
641.68

1,582.70
(357.64)
(326.18)
67.40
966.28

1,688.78
(220.36)
(381.40)
554.22
1,641.24

1,976.37
(172.66)
(513.35)
391.03
1,681.39

2,941.13
(194.64)
(622.86)
829.41
2,953.04

4,352.66
(336.68)
(1,039.14)
1,584.47
4,561.31

3,871.62
(1,070.42)
(1,632.42)
1,796.98
2,965.76

212.82

641.68

966.28

1,641.24

1,681.39

2,953.04

4,561.31

2,965.76

212.82

641.68

966.28

1,641.24

1,681.39

2,953.04

4,561.31

2,965.76

(50.13)
(110.45)

(89.27)
(114.53)

(317.64)
(116.08)

24.80
787.28
(4.91)
782.37
461.09
1,243.46

2.13
1,209.65
(17.72)
1,191.93
1,048.35
2,240.28

1,288.95
7.80
1,296.75
1,702.69
2,999.44

2,240.55
39.45
2,280.00
2,390.69
4,670.69

3,988.47
16.47
4,004.94
3,960.05
7,964.99

(84.32)
(10.79)
(100.00)
1,048.35

(161.96)
(22.79)
(352.84)
1,702.69

(183.07)
(25.68)
(400.00)
2,390.69

(180.07)
(30.57)
(500.00)
3,960.05

(219.29)
(37.27)
(1,000.00)
6,708.43

(2.21)
14.60
7.00
232.21

481.10

232.21
101.54
333.75

481.10
104.73
585.83

(59.02)

(74.44)

(170.00)
104.73

(50.00)
461.39

(231.20)
(138.89)
(22.35)

(369.84)
(318.61)
(24.04)

(702.47)
11.97
117.66

(668.37)
126.85
274.33
2,698.57
133.19
2,831.76
6,697.99
9,529.75

(223.34)
(37.95)
9,268.46

851.01
851.01
595.21
212.82
232.21

9.84%
9.84%
6.88%
2.46%
2.69%

0.41
0.90

-80.36%
0.33%
9.11%

1,188.40
1,188.40
950.88
641.68
481.10

12.27%
12.27%
9.82%
6.62%
4.97%

0.40
0.88

225.54%
0.96%
-25.02%

1,582.70
1,582.70
1,256.52
966.28
787.28

18.42%
18.42%
14.62%
11.25%
9.16%

0.33
0.82

-27.76%
0.78%
-18.52%

1,688.78
1,688.78
1,307.38
1,641.24
1,209.65

14.43%
14.43%
11.17%
14.02%
10.34%

0.07
0.86

722.28%
4.74%
-26.30%

1,976.37
1,976.37
1,463.02
1,681.39
1,288.95

13.18%
13.18%
9.76%
11.22%
8.60%

0.17
0.87

-29.44%
2.61%
-23.34%

2,941.13
2,941.13
2,318.27
2,953.04
2,240.55

16.25%
16.25%
12.81%
16.32%
12.38%

0.49
0.84

112.11%
4.58%
-24.13%

4,352.66
4,352.66
3,313.52
4,561.31
3,988.47

17.49%
17.49%
13.31%
18.33%
16.03%

0.48
0.83

91.04%
6.37%
-12.56%

3,871.62
3,871.62
2,239.20
2,965.76
2,698.57

11.01%
11.01%
6.37%
8.43%
7.67%

(0.11)
0.89

13.41%
5.11%
-9.01%

2010

2011

38,754.75
(843.43)
37,911.32

35,102.12
(768.08)
34,334.04

(30,449.17)

(29,682.45)

7,462.15
(1,505.20)
(1,246.84)
468.86
5,178.97

2012

2013

2014

2015

2016

2017

2018

4,651.59
(1,050.57)
(1,801.02)
605.91
2,405.91

5,178.97

2,405.91

5,178.97

2,405.91

(1,025.48)
66.04

(876.21)
742.56

4,219.53
(4.92)
4,214.61
7,768.46
11,983.07

2,272.26
24.93
2,297.19
8,440.71
10,737.90

(317.56)
(52.74)
(2,120.50)
9,492.27

(318.56)
(51.68)
(1,100.00)
9,267.66

7,462.15
7,462.15
6,215.31
5,178.97
4,219.53

19.68%
19.68%
16.39%
13.66%
11.13%

0.93
0.80

-73.91%
1.24%
-18.53%

4,651.59
4,651.59
2,850.57
2,405.91
2,272.26

13.55%
13.55%
8.30%
7.01%
6.62%

(0.38)
0.86

29.23%
1.76%
-5.56%

2019

2020

BALANCE SHEET (in INR m)

FUNDS EMPLOYED
Shareholders' Funds
Share Capital
Reserves and Surplus
Shareholders' equity
Loan Funds
Secured Loans
Unsecured Loans
Loans
Deferred Tax Liability (Net)
Minority Interest
Total
APPLICATION OF FUNDS
Goodwill on consolidation
Fixed Assets
Gross Block
Less: Depreciation/Amortisation
Net Block
Add : Capital Work in Progress
Net Fixed Assets
Investments
Total Long Term Assets
Current Assets, Loans and Advances
Cash and Bank Balances
Interest accrued on investments
Inventories
Sundry debtors (receivables)
Other Current Assets
Loans and Advances
Total Current Assets
Current Liabilities and Provisions
Current Liabilities
Provisions
Total Current Liabilities
Net Current Assets
Total
check

Schedule G

2000

2001

2002

Current Liabilities
1 Acceptances
2 Sundry Creditors
Trade (payables)
Others
3 Investor Education etc
4 Other Liabilities

Assumptions:

B
A
A
S
E

Fixed Assets
Net Fixed Assets - Opening
Add: Capex
Add: Acquisitions / (Disposals)/WIP addns
Less: Depreciation
Net Fixed Assets - Ending
Capex (as a % of sales)
Depreciation (as a % of sales)
Debt
Average Debt
Interest paid
Interest cost %
Cash and Bank Balances
Interest earned
Interest rate %

Ratio Analysis
Solvency Ratios
Current ratio
Quick ratio
Cash ratio

Turnover Ratios
Receivables turnover
Inventory turnover
Payables turnover

Average receivables collection period

Average inventory processing period
Average payment period
Cash Conversion Cycle
Other Receivables
Other Current Assets as % of Sales
Loans and Advances as % of Sales
Other Payables
Acceptances as % of COGS
Others Creditors as % of COGS
Investor Education etc as % of COGS
Other Liabilities as % of COGS

Operating Efficiency
Total asset turnover
Net fixed asset turnover
Equity turnover

Operating Profitability
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on total capital
Return on total equity

ROE DuPont Analysis

Profit Margin
Asset Turnover
Financial Leverage
ROE

Financial Risk Ratios

Debt to equity ratio
Debt ratio
Interest coverage ratio

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

CASH FLOW STATEMENT (in INR mn)

Cash Flow from Operating Activities:
Profit before tax and prior period items
Adjustment for:
Depreciation/Impairment
Impairment of Goodwill
Prior period item (Net)
Profit on sale of investments
Profit on disposal of subsidiaries
Gain on disposal of assets
Interest Expense
Interest Income
Dividend Income
Effect of exchange rates on op cashflows
Operating Profit before Working Capital changes
Adjustment for:
Changes in working capital
Trade Receivables (sundry debtors)
Other Receivables (loans & advances)
Inventories
Trade and other payables
Changes in other current assets
Cash generated from Operations
Income tax paid (net of refund)
Others
Net cash generated from operating activities
Cash Flow from Investing Activities:
Purchase of Fixed Assets
Proceeds from sale of Fixed Assets
Purchase of Investment
Sale of Investment
Interest received
Dividend received
Cash outflow on additional stake in subsidiary
Cash inflow arising on disposal of subsidiary
Net cash used in investing activities
Cash Flow from Financing Activities
Proceeds from long term borrowings
Proceeds from short term borrowings
Repayment of long term borrowings
Repayment of short term borrowings
Interest Paid

2000

2001

Dividend and Dividend tax paid and Provisions

Net cash used in financing activities
Net Inc/(Dec) in Cash and Cash Equivalents
Cash and Cash Equivalents - bop
Net effect of changes in exchange rate
Cash and Cash Equivalents - eop

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Historical

Valuation Sheet

FY 09

DCF Summary
Net Income
Depreciation
Interest*(1-T)
Capex
Changes in working capital
Free Cash Flow to Firm

2000

Date
FCFF (explicit forecast)
Terminal value
Present value of "explicit forecast period" - till 2015E
PV of Terminal Value

Valuation Assumptions
Terminal growth rate
Cost of debt
Beta
Risk free rate (rf )
Market Premium
Cost of Equity

WACC Calculation
Total Debt
Shareholders' equity
Capitalization:
Debt: Equity
Debt: Total Capital
Equity: Total Capital
Cost of Equity
WACC

5.0%
10.0%
1.1
8.0%
5.0%

CB Research & Analytics

EV Computation
Present value of "explicit forecast period" - till 2015E
PV of Terminal Value
Total Valuation
Less: Debt
Less: Minority Interest
Add: Cash and bank deposits
Other adjustments:
Add: Investments
Add: Other non-operating assets
Intrinsic Value (in mn)
No of Shares (in mn)
Share Price (INR)

Asian Paints Model

Historical

Forecast

FY 10

FY 11E

FY 12E

FY 13E

FY 14E

FY 15E

2001

2002

2003

2004

2005

2006

2012

2011

1905

1905

1905

1905

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Peer Companies
Debt
Cash
Market Price
Shares Outstanding
Equity Value
Enterprise Value
Capital Invested
(In Crores)
Sales
Excise
Net Sales
COGS
Total Expenses
Operating Expenses
EBITDA
GP Margins
EBITDA Margins
Net Profit
Net Profit Margins

Total Assets

Multiple Analysis
P/E
EV/Sales
EV/EBITDA
P/Sales