11 May 2023 1:00 PM GMT

Company Review

Top Indian Companies: Asian Paints

Myfin Desk

Top Indian Companies: Asian Paints


Asian Paints is India's largest and Asia's third largest paints corporation.

Asian Paints Ltd is an Indian multinational paint company, headquartered in Mumbai. The company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services.

Asian Paints is India's largest and Asia's third largest paints corporation. Asian Paints is the holding company of Berger International.

The company's manufacturing operations encompass 15 countries of the world including India, with considerable presence in the Indian subcontinent and the Middle East.

The company was started in a garage in Gaiwadi, Girgaum, Mumbai by four friends Champaklal Choksey, Chimanlal Choksi, Suryakant Dani and Arvind Vakil.

Manufacturing Locations

The company along with its subsidiaries have 26 manufacturing facilities across 16countries serving customer globally in over 65 countries.

Asian Paint is part of the Nifty 50 index and has a weightage of 1.88%

Shareholding Pattern of Asian Paints

The Shareholding Pattern page of Asian Paints Ltd. presents the Promoter's holding, FII's holding, DII's Holding, and Share holding by general public etc.

Holder's Name No of Shares % Share Holding

No Of Shares 959197790 100%

Promoters 504785191 52.63%

Foreign Institutions 196426803 20.48%

N Banks Mutual Funds 28475620 2.97%

Central Govt 403162 0.04%

Others 69939453 7.29%

General Public 118836781 12.39%

Financial Institutions 40107540 4.18%

GDR 223240 0.02%

FY2023 Q4 and Full Year Result

:Asian Paints Ltd reported an increase of 43.97 per cent in its consolidated net profit at Rs 1,258.41 crore in the March quarter, led by a double-digit volume and value growth in decorative business.

The company had posted a net profit of Rs 874.05 crore during the January-March quarter of FY22, Asian Paints said in a regulatory filing.

Its revenue from sales rose 10.91 per cent to Rs 8,750.85 crore during the quarter under review as against Rs 7,889.94 crore in the year-ago period.

Asian Paints' total expenses were at Rs 7,181.66 crore, up 7.55 per cent, in Q4FY23 as against Rs 6,677.11 crore in the corresponding period a year ago.

Its total income in the March quarter was at Rs 8,892.82 crore, up 11.53 per cent.

"In this quarter we have logged in the highest value ever, with the decorative and non-automotive industrial businesses registering double-digit volume and value growths," Asian Paints Managing Director & CEO Amit Syngle said.

"We have been able to improve our margins in the quarter sequentially and over last year through our persistent work on formulation and sourcing efficiencies and also helped by the easing inflation in raw material prices," he said.

In the international business, Asian Paints sales decreased 2.7 per cent in Q4FY23 to Rs 794.4 crore as against Rs 816.0 crore on the back of economic uncertainty, forex crisis and liquidity issues in key markets of Asia and Africa, the company said in its earnings statement.

In 2022-23, Asian Paints' net profit increased 36 per cent to Rs 4,195.33 crore. It was Rs 3,084.81 crore in FY22.

Its consolidated revenue from operations in FY23 rose 18.82 per cent to Rs 34,367.83 crore.

Over Asian Paint's performance in FY23, Syngle said: "It has been an outstanding year for us with a 14 per cent volume growth and 20 per cent value growth in our standalone business."

Its growth in both the industrial coatings have been stellar, growing double-digit in volume and value, delivering one of the highest profits in the last 2 decades, he added.

"Overall, at a consolidated level, we crossed Rs 34,000 crore in revenue and along with our décor and services diversification, we are now the largest integrated player in Home Décor Business," Syngle said.

Meanwhile, the company also informed its board in a meeting held on Thursday recommended payment of a final dividend of Rs 21.25 per equity share of the face value of Re 1 each for the financial year ended March 31, 2023.

"The total dividend for the financial year ended 31st March 2023, aggregates to Rs 25.65 per equity share of the face value of Re 1, including the interim dividend of Rs 4.40," it added.

Shares of Asian Paints Ltd on Thursday settled 3.22 per cent higher at Rs 3,138.60 apiece on the BSE

Brokerage Outlook

Geojit expect the recent price hikes may support the company to keep the EBITDA margins in the range of 17% to 19% levels in FY22. EBITDA margin during the quarter declined by 825bps YoY to 18.1%. Consequently, PAT de-grew by 18.5% YoY to Rs1,031cr.

Geojit expect APNT’s revenue and PAT to grow at a CAGR of 20%/22% respectively over FY21-FY24E on account of better volume growth and improved margins. The management expects the large part of the price increase will be visible from Q4 unless there is no significant increase in input prices. We maintain our Buy rating with a TP of Rs 3,663, based on a P/E of 60x on FY24E EPS

ESG and Sustainability

The company is committed to not only reducing the water that it consume within its manufacturing units but also replenish more than what we consume through our offsite watershed management projects.

As a part of re-use scheme, it did a pilot project, steam condensate was recovered through re-routing the condensate lines to a condensate recovery tank.

In Mysuru factory, storm and roof water reservoirs collectively contribute to a slump in capacity to over 54,700 KL.

Similarly, at its Vizag factory, storm and roof water reservoirs that collectively contributes a sump of capacity over 52,000 KL.