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
