Annual Report Analysis on Paint Industries(Pritish Hatwar 12072)

8/2/2019 Annual Report Analysis on Paint Industries(Pritish Hatwar 12072)

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International School of Business & Media, Pune 1

Annual Report analysis of

In partial fulfillment of the requirements for the award of the Masters

Of Business Administration in

Marketing and Finance

Submitted by

PRITISH HATWAR (12072)

Under the guidance of

Prof. Subramanium

Academic Year 2011-13

INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA

Nande Campus, Pune.


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Executive Summary

Asian Paint, Kansai Nerolac Paint and Berger Paint are the top 3 player in Paint

industries in India. Various technologies exist for making paints that change color. Thermo chromic

paints and coatings contain materials that change conformation when heat is applied, and so they

change color. Liquid crystals have been used in such paints, such as in the thermometer strips and tapes

used in fish tanks. Photo chromic paints and coatings contain dyes that change conformation when the

film is exposed to UV light, and so they change color. These materials are used to make eyeglasses.

The report is divided into three parts. The first parts will analysis the annual report of

Asian Paint. In that analysis, we will see the Balance Sheet, Profit and loss, and Cash Flow of the

company. Then we will see what Directors report said? And analysis with the project.

The Second parts will analysis the annual report of Kansai Nerolac Paint. In that

analysis, we will see the Balance Sheet, Profit and loss, and Cash Flow of the company. Then we

will see what Directors report said? And analysis with the project.

The Third parts will analysis the annual report of Berger Paint. In that analysis, we will

see the Balance Sheet, Profit and loss, and Cash Flow of the company. Then we will see what

Directors report said? And analysis with the project.

At the last part i.e. we will analyze the how they compare with the average in the

industry.
http://en.wikipedia.org/wiki/Liquid_crystalhttp://en.wikipedia.org/wiki/Liquid_crystal


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Table of Contents

Asian Paint ...................................................................................................................................... 4

Analysis ........................................................................................................................................ 4

Net sales & Operating, PBDIT & PBDIT Margin (%) ................................................................. 5

Profit Before & After Tax .............................................................................................................. 5

Cash generated from operation .................................................................................................. 6

Average capital employed & Return on average capital employed ...................................... 6

Dividend per Share & Earning per Share ........................................................................... 7

Net Fixed asset & Asset turnover ratio .............................................................................. 7

Kansai Nerolac Paint ........................................................................................................................ 8

Analysis ........................................................................................................................................ 8

Distribution of Income.................................................................................................................. 9

Sales, Profit, Profitability ........................................................................................................... 10

Shareholder Fund, Return on Networth ................................................................................. 10

Return on capital employed, Earning per Share ................................................................... 11

Market capitalization, Book value per share, Dividends ................................................. 11

Berger Paint ................................................................................................................................... 12

Analysis ...................................................................................................................................... 12

Overall Analysis ............................................................................................................................. 13


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Asian Paint

Balance Sheet and Profit & Loss

These two majorly focus on following analyzed item:

Net Sales & Operating Income increased by 23.4% to Rs. 6,322.2 crores. PBDIT increased by 6.8% to Rs. 1232.7 crores.

Annual report says

State of the art paint manufacturing facility commissioned at Rohtak Haryanawith an initial capacity of 120,000 KL per annum scalable to 400,000 KL per

annum.

The Board of Directors have recommended a final Dividend of Rs. 23.5 (TotalDividend for the year is Rs. 32)

Analysis

Net sales and operating income for the standalone entity increased to 6,322.24 croresfrom 5,125.08 crores in the previous year a growth of 23.4%.

The operating profit (PBDIT) increased by 6.8%, from 1,153.71 crores to 1,232.66 crores.

The profit after tax for the current year is 775.15 crores as against 774.50 crores in theprevious year.

The consolidated sales and operating income net of discounts and excise duty increasedto 7,706.24 crores from 6,680.94 crores growth of 15.3%.

Net profit after minority interest for the group for the current year is 843.24 as against835.64 crores in the previous year.


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Kansai Nerolac Paint

Analysis: Gross sales for the year aggregated to Rs. 2493 crores reflecting a growth of 26.4% over

the previous year.

Sales net of excise duty grew by 25.3%. Profit for the year was driven by robust growth in decorative and industrial sales. Overall raw material inflation was very high. Increase in raw material prices was driven by increase in crude oil prices. Depreciation is higher due to full impact of the water based plant at Hour commissioned

in the last quarter of 09-10.

Current year's depreciation is at Rs. 49.35 crores as compared to Rs. 44.26 crores of theprevious years.

Interest was lower at Rs. 0.84 crores as compared to Rs. 1.20 crores of the previous yeardue to effective cash management.

Other income was higher at Rs. 48.83 crores (09-10 Rs. 20.38 crores) due to profit onsale of investments.

During the year companys investment in Nipa Chemicals Ltd. was sold to NihonParkerizing Co. Ltd., Japan at a profit of Rs. 25.37 crores.

Profit Before Tax (PBT) is higher at Rs. 289.13 crores as compared to Rs. 238.61 crores ofthe previous year reflecting a growth of 21.1%.


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Berger Paint

Analysis

During the financial year ended 31st March, 2011, the Company achieved net consolidated salesof 23,281 million as against 18,913 million in the previous year registering a growth of 23%.

The profit before depreciation, interest and exceptional items was 2,800 million as against 2,250million in the previous year, recording an improvement of 24%.

The profit before tax was 2,161 million (2009 - 10: 1,720 million) and the profit after tax was1,501 million (2009 - 10: 1,204 million), representing increases of 26% and 25% respectively.

The Company paid an interim dividend of 0.50 per share i.e. at 25% for the year under review on31st March, 2011.

A final dividend of 0.80 per share i.e. at 40% for the year under review. Together with the interim dividend, this would mean a total dividend of 1.30 per share i.e. 65%

for the financial year 2010 -11. This, if approved, will absorb an amount of 450 million

(compared to 381 million paid in the previous year) net of Dividend Distribution Tax, and will be

paid to those members whose names appear in the Register of Members as on the conclusion of

book closure date on 2nd August, 2011.

In terms of the provisions of Section 205C of the Companies Act, 1956, your Companytransferred an amount of 125,000 to the Investor Education and Protection Fund, in respect of

dividend amounts lying unclaimed / unpaid for more than seven years from the date they

became due i.e., for the year ended 31st March, 2004.


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Overall Analysis

Company Net Sales (FY

2011) in Cr.

Net Sale

Growth rate (5

Year CAGR)

Net Profit (FY

2011) in Cr

Net Profit

Growth rate (5

Year CAGR)

Net Profi

Margin (6 Yea

Avg)

Asian Paint 6607.2 22% 773.55 32.53% 10.03%

Kansai Nerolac 2266.2 15% 186.52 13.59% 8.17%

Berger 2096.2 16% 148.31 16.04% 6.84%

Documents

Annual Report Analysis on Paint Industries(Pritish Hatwar 12072)