OPERATIONAL ANALYSIS

Segmentation on the basis of businesses

DECORATIVE BUSINESS DÉCOR AND CONSUMER SERVICES KITCHEN BUSINESS
• Growth momentum (Volume- • Subsidary Role (Sleek Int. Pvt Ltd) BATH FITTINGS & SANITARY
• Digital dominance and
14% & Value- 20%) • Achieved sales target 425.5 cr WARE
experience.
• tapped new consumers • Focus on Full Modular Solutions • Acquired Ess Ess
• Best-in-Class Consumer
• Influencer relationships • Tapping into residential builder’s • Reaching sales of 406 cr
Experience
• Colour next 2023 market • Launch of concept bathrooms
• White Teak- Light category
• Tapping large business segments • Business grew at 9.5% • Strong impact in the Projects
• Beautiful Homes Service, the
segment
flagship interior design service

Analysis on the basis of Business Segmentation Growth Comparison Strong double-digit growth
of Similar businesses despite challenging external
environment

34%

18.50%
0.15
Revenue growth
0.063

Growth rate
Product Diversification Market Expansion Design Execution Bath Fittings & Sanitary Ware
Kitchen Bsuiness
Decorative business Décor services Kitchen Business Bath Fittings FY22 FY23
 MACRO ANALYSIS- ECONOMIC FACTORS AND ITS IMPACT (International Aspect) & STRATEGIES

Factors-
• Global Supply Chain Volatility Impact Of Macro Economic factors on the International
• Spike in Raw Material Prices operations of Asian Paints Ltd
• Inflationary Pressure
• Climate related and natural disasters
Inflation

Natural Calamities
Inflation was found to be
US dollar shortages
the major economic
reason that impacted the Political Turmoil
areas where the company Nepal Bangladesh Sri Lanka South Middle East Africa
Pacific
operates.

Industrial Business (India)- PERFORMANCE DRIVER

Strategies made by ASIAN PAINTS LTD  Operations: Both PPG-AP and AP-PPG, the 50:50 joint ventures with
• price increases in all markets to mitigate the impact of high PPG Industries Inc., showed positive growth in their respective segments
inflation and rising operating costs.  Profitability and Cost Optimization: Despite steep raw material inflation
• optimizing working capital, aiming to improve cash flow and currency depreciation , implemented price increases and cost
and enhance financial stability optimization measures to protect margins
• Product Portfolio Expansion  R&D and Technological Support: research and development capabilities,
• Strategic Focus Areas- waterproofing, luxury products, leveraging technological support
construction essentials.  Market Expansion and Portfolio Diversification
• Supply Chain Optimization  Government Initiatives and Market Environment: The government's focus
• Market Expansion and Network Growth on infrastructure and renewable energy sectors, along with PLI schemes
and the "China plus one" strategy, supported capital investments and
drove demand for industrial coatings
 FINANCIAL ANALYSIS

APNT delivered YoY revenue and profitability FY22 FY23

growth in the context of unprecedented YoY Growth (%) 34% 18.5%
inflationary pressure impacting demand EBITDA (INR Mn) 48036 62598
YoY Growth (%) -1.1% 30.3%
Persistently high inflation impacted consumer EBITDA Margin 16.5% 18.2%
sentiments across segments and price points. APNT
PAT (INR Mn) 30306 41065
implemented some calibrated and gradual price
hikes which helped it to protect the overall demand YoY Growth (%) -3.5% 35.5%
sentiment. PAT Margin 10.4% 11.9%

Working Capital & Dividend Analysis

Cost and Margin Analysis
Working Capital as a % of • APNT’s cost of goods sold as % of operating
Dividend Growth revenue declined to 61.3% in FY23 from 62.9% in
sales trend 33.90%
30 FY21
25 • Moving into FY24E, APNT management is
20 optimistic
15 • Absolute gross profit grew by 23.4% YoY to INR
7.30%
10 1,33,321 mn.
5 • EPS for FY23 was INR 42.8, which is a growth of
FY22 FY23
0 35.5% YoY
FY19 FY20 FY21 FY22 FY23 Dividend Growth