Result Analysis: Asian Paints Ltd. Result Update Q4FY21 and FY21


Particulars (In Cr.) Q4FY21 Q3FY21 Q4FY20 QoQ % YoY% FY21 FY20 YoY%
Revenue from Operations 6651 6788 4636 -2.0% 43.5% 21713 20211 7.4%
Other Income 75 98 56 -23.0% 35.1% 303 304 -0.3%
Total Income 6726 6886 4692 -2.3% 43.4% 22016 20515 7.3%
Raw Material Consumed 3436 2889 2416 18.9% 42.2% 10317 10091 2.2%
Raw Material as % of Sales 51.7% 42.6% 52.1% 910 bps (45) bps 47.5% 49.9% (241) bps
EBITDA 1318 1788 860 -26.3% 53.4% 4856 4162 16.7%
EBITDA Margin 19.8% 26.3% 18.5% (652) bps 128 bps 22.4% 20.6% 177 bps
Profit After Tax 870 1265 480 -31.2% 81.3% 3207 2774 15.6%
PATM (%) 12.93% 18.37% 10.23% (544) bps 270 bps 14.57% 13.52% 104 bps
EPS (Rs.) 8.88 12.91 4.82 -31.2% 84.2% 32.73 28.2 16.1%
Segment Revenue Q4FY21 Q3FY21 Q4FY20 QoQ % YoY% FY21 FY20 YoY%
Paints 5577 5800 3828 -3.84% 45.6% 18265 16975 7.4%
Home Improvement 93 73 51 27.4% 82.3% 247 219 12.8%

Result Highlight:

  • Consolidated Revenue for Q4FY21 grew 43% YoY at Rs 6651 Crore beats the street estimates of Rs 6050 Crore.
  • Sequentially Revenue and Profit after Tax fell 2% and 31% respectively.
  • Net profit is up 81% YoY to Rs 870 crore is below the estimates of Rs. 900 Crore.
  • Consolidated Revenue from operations was up by 7.4% in FY21.
  • EBITDA margin reduced to 19.8 % in Q4FY21 from 26.3% in Q4FY21 impacted by higher raw material cost.
  • Raw Material cost as % of sales increased 910 bps to 51.7% in Q4FY21 however in FY21 declined 241 bps.
  • Cash flow from Operating Activities improved to Rs. 3683 Cr in FY21 from Rs. 3038 Crore in FY20
  • Board of Directors recommended a final dividend of Rs. 14.50 per equity share. The Company distributed first interim dividend of Rs. 3.35 per equity share (335%) in November 2020 for FY21. Total dividend of Rs. 17.85 per equity share was distributed for FY21.
  • Will Convey 75th AGM of the Company virtually on Tuesday, 29th June, 2021, at 11:00 a.m.

Management commentary:

  • We have seen a very strong quarter aided by good demand across rural and urban areas at the country level. On the heels of a healthy Q2 and Q3 recovery, this quarter saw exceptional growth across businesses and consumer segments.
  • Domestic Decorative business delivered a stellar performance registering a 48% volume growth in the quarter, led by a robust growth in the premium and luxury product range.
  • The Industrial coatings business delivered a robust performance, particularly in Protective coatings and Refinish segments supported by the uptick in the industrial activity.
  • The International business continued to record an exceptional double-digit volume growth, led by good growth in Asia and Middle East.
  • The huge inflationary trend in raw material prices has been worrying, however, its impact on profitability has been negated with some path-breaking work on sourcing and cost optimization.
  • Gained Market Share from Unorganized Players and in some markets like Tamil Nadu, even gained market share from Organized players also.
  • Expecting near term uncertainties led by the second wave of COVID – 19 however medium-term growth prospects are intact with growth momentum in Tier 3 & 4 towns due to shift to from Non – Branded to Branded Products


Asian Paint Q4FY21 numbers beat street estimates. Margins are under pressure due to higher raw material cost but management is taking all steps to optimize cost. Gaining market share from organized and Unorganized players is big positive for the company. Further, the company continues to expand its categories from paints to overall home decoration segments would help it to create new growth levers for future growth. In near term the industry is likely to witness headwinds related to high RM and lock down. We have a positive outlook on the company for medium to long term. Hence, we would recommend investors to accumulate the stock between Rs. 2700 – 2750 for the target price of Rs. 3200.

Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth
Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their
investment decision and must exercise their own judgment before making any investment decision.
For analyst certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by Elite Wealth
Limited are registered/qualified as research analysts with SEBI in India. (SEBI Registration No.: INH100002300)
Disclosure Appendix
Analyst Certification (For Reports)
Suhail Khan (Technical Analyst)
The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their
securities. I/We also certify that no part of my compensation was, is or will be, directly or inirectly, related to the specific recommendations or views expressed in this
report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that
the analyst covered in the report, that:
(1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
(2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the
For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
Research Excerpts
This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment
thesis, valuation methodology, and risks to rating and price targets, please visit
Company-Specific Disclosures
Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting, or emailing with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research.
For important disclosures for these companies, please e-mail
Options related research:
If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure
Documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at
Other Disclosures
All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available
to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
Ownership and material conflicts of interest Disclosure
Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of
Coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth
Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, advisory board member or employee of any company
in the analyst’s area of coverage.
Country Specific Disclosures
India – For private circulation only, not for sale.
Legal Entities Disclosures
Mr. RavinderParkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course
Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and
Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website:
EWL Advisory discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research
report, details of associates and such other information as is necessary to take an investment decision, including the following:
1. Reports
a) EWL Advisory or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
(b) EWL Advisory or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of
the month immediately preceding the date of publication of the research report or date of the public appearance;
(c) EWL Advisory or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public
2. Compensation
(a) EWL Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) EWL Advisory or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
(c) EWL Advisory or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company
in the past twelve months;
(d) EWL Advisory or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage
Services from the subject company in the past twelve months;
(e) EWL Advisory or its associates have not received any compensation or other benefits from the subject company or third party in connection with the research
3 In respect of Public Appearances
(a) EWL Advisory or its associates have not received any compensation from the subject company in the past twelve months;
(b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided
by EWL Advisory
Provided that research analyst or research entity shall not be required to make a disclosure as per sub-clauses (c), (d) and (e) of clause (ii) or sub-clauses (a) and (b) of
Clause (iii) to the extent such disclosure would reveal material non-public information regarding specific potential future investment banking or merchant banking or
Brokerage services transactions of the subject company.
(4) EWL Advisory or its proprietor has never served as an officer, director or employee of the subject company;
(5) EWL Advisory has never been engaged in market making activity for the subject company;
(6) EWL Advisory shall provide all other disclosures in research report and public appearance as specified by the Board under any other regulations.