ASIAN PAINTS
Asian Paints Limited is an Indian multinational paint company that was established on 01-02-1942 and is headquartered in Mumbai, Maharashtra, India. Today, it stands as India’s largest with a group turnover of Rs.202.1 billion, Asia’s-third largest and World’s ninth-largest paint company. It started as a partnership firm by four friends and their families held the majority shares of the company back then. The company operates in 15 countries and has 26 paint manufacturing facilities in the world.
The shareholding pattern of Asian Paints is divided into five groups: Promoter & promoter group having 52.79% shares, foreign institutions investors having 20.38% shares, domestic institutional investors having 7.27% shares, Government having 0.08% shares and the public having 19.48% of the total shareholdings.
The company has a dedicated team of 7500+ members worldwide and 200+ scientists in the Research and Technology facility. The company’s distribution network is spread across 70,0000+ dealers. They manufacture a wide range of paints for decorative and industrial use. In the Industrial coatings space, it operates through the two, 50:50 joint ventures with, PPG Inc. USA, and JV ‘Asia Paints PPG Pvt Ltd’.
The company is inclusive of their communities through a range of social interventions that include: Education, Skills Development, Healthcare/hygiene, and water management. The company has recently launched three brands– Nilaya, Royale, and Ador, and a service called ‘Beautiful Home Service’.
For the quarter ending 31-03-2021, the company had a decline in consolidated profit of 31.25% for the quarter ending 31-03-20201 and stood at Rs.869.89 crore against the previous quarter at Rs.1265.35 crore. The consolidated revenue from operation decreased in Q4 and stood at Rs.6651.43 crore as compared to Rs.6788.47 in Q3. The company’s EBITDA also decreased from Rs.1692.94 in Q3 to Rs.1180.32 in Q4. Their EPS for Q4 is reported to be Rs.8.8 crore against Rs.12.91 crore of Q3.
The Q4 results for FY2020-21 when compared to the year-ago quarter, we can see that the company’s overall performance has been satisfactory given the pandemic situation. The board has recommended a final dividend of Rs.14.5 per share for the financial year ended March 2021.
