Asian paints

Vertical analysis:

PARTICULARS 2016-17 2015-16 2014-15

Sales Turnover 106.6612 112.1523 109.0962
Net Sales 93.93564 100.023 97.44265
Other Income 2.234917 1.26513 1.449574
Total Income 100 100 100
Raw Materials 55.16092 50.7206 55.29058
Power & Fuel Cost 0.653466 0.751959 0.952608
Employee Cost 5.517325 5.253512 5.077063
Selling and Admin Expenses 3.836272 3.684577 0
Miscellaneous Expenses 12.75514 18.71206 20.41214
Total Expenses 77.92312 79.12271 81.73239
PBDIT 22.07688 20.87729 18.26761
Tax 6.350089 6.171968 5.070622
Reported Net Profit 13.39242 12.63493 11.10372

Interpretation:
 Sales turnover: Sales turnover of the asian paints is shows the remarkable increase from
the 2014-15 to 2015-16 in %age it is increase from 109.09 to the 112.15% in monetary
terms it is increase from 13041.96 cr to 14179.38 and in the year 2015-16 to 2016-17
there is a decrease in the sales turnover from 112.15% to 106.66%.
 Net sales: Net sales of the company shows increase from year 2014-15 to 2015-16
97.44% to 100.02% and in the year 2016-17 it is decreased to 93.93%.
 Other income: Other income of the asian paints shows a slight decrease in the year 2015-16
from 2014-15 and in the year 2016-17 it shows increase of approximately 1%.
 Raw material: Raw material used in the manufacturing of the paint in asian paints is 55.29% of
the total income in the year 2014-15 and it is decrease in year 2015-16 and increase in the year
2016-17 from the year 2015-16.
 Power and fuel: Cost of power and fuel is 0.95% of the net sales in the year 2014-15 and it is
decreased in the both next year.
  Employee cost: Employee cost of the asian paint shows there is a continuous increase of
5.07% to 5.51% from the 2014-15 to the year 2016-17 may be it is due to the increase in
the salary of the employee of the company.
 Selling and administration expenses: Selling and administration expenses of the asian
paints is shows there is increase of 3.68% to the 3.83% from the year 2015-16 to the year
2016-17
 Miscellaneous expenses: Miscellaneous expenses of the asian paint is continuous
decrease from the 2014-15 to the year 2016-17.
 Profit before depreciation interest and tax: It shows the continuous increase from the
year 2014-15 to the year 2016-17 in % it is increase from 18.26% to the 22.075 and in
monetary terms it is increase from 2183.81cr to 2972.34cr.
 Tax: The cost of tax paid by the asian paints shows continuous increase year by year
from 5.07% to 6.35% and in the monetary value it is increase from 606.17cr to 854.95cr.
 Reported net profit: Reported profit of the company shows=s there is a continuous
increase of 11.10% to the 13.39% from the year 2014-15 to the year 2016-17 in monetary
terms it is increase by 1327.40cr to the 1803.10cr.

Horizontal analysis:

In horizontal analysis we would consider year 2014-15 as a base year.

PARTICULARS 2016-17 2015-16 2014-15

Sales Turnover 110.1094 108.7212 100
Net Sales 108.5698 108.5592 100
Other Income 173.6396 92.30192 100
Total Income 112.6231 105.7586 100
Raw Materials 112.359 97.01728 100
Power & Fuel Cost 77.25676 83.48261 100
Employee Cost 122.3894 109.4342 100
Selling and Admin Expenses 516.5 465.84 0
Miscellaneous Expenses 70.37596 96.95022 100
Total Expenses 107.3742 102.3818 100
PBDIT 136.108 120.8672 100
Tax 141.0413 128.7296 100
Reported Net Profit 135.837 120.3428 100
Interpretation:

 Sales turnover: Sales turnover of the asian paint is showing an increasing trend which
means the company is able to generate more sales from available resources. Sales
turnover is increase from 100 to 110.10 from the year 2014-15 to 2016-17.
 Net sales: Net sales of the asian paint shows a trend of slight increase of 108.55 to
108.56 from the year 2014-15 to 2016-17.
 Other income: Other income of the asian paint shows a increasing trend from decrease
in the year 2015-16 and in the year 2016-17 it shows a trend of huge increase in the other
income.
 Raw materials: Raw material of the asian paints shows a decreasing trend from year
2014-15 to 2015-16 and increasing trend in the year 2016-17 from 2015-16.
 Power and fuel expenses: Power and fuel expenses of the asian paint shows a decreasing
trend of 100 to 77.25 from the year 2014-15 to the year 2016-17.
 Employee cost: Cost incurred on the employee cost by the asian paint is shows the
increasing trend of 100 to 122.38 from the year 2014-15 to 2016-17 it means company
incurred more on the employee of the company.
 Selling and administration expenses: Cost incurred on the selling and administration
expenses shows the increasing trend of 465.84 to 516.5 from the year 2015-16 to 2016-17
which means the cost of selling the product is increase in the year 20156-17 as compare
to the year 2015-16.
 Miscellaneous expenses: Cost incurred on the miscellaneous expenses by the asian paint
shows a decreasing trend of 100 to 70.37 from the year 2014-15 to the year 2016-17.
 Total expenses: Total expenses of the asian paint shows the increasing trend of 100 to
107.32 from the year 2014-15 to 2016-17 which means the overall expenses of the asian
paint is increasing year on year.
 Profit before depreciation interest and tax: Profit before depreciation interest and tax
of asian paint show a increasing trend from 100 to 136.10 from the year 2014-16 to the
year 2016-17.
 Tax: Tax paid by the asian paint shows the increasing trend from 100 to 141.04 from the
year 2014-15 to the year 2016-17which means due to the increase in the sales of the
company tax paid by the company is also increased.
 Reported net profit: Reported net profit of the company shows the increasing trend
from 100 to 135.83 from the year 2014-15 to the year 2016-17 which means due to the
increase in the sales turnover of the asian paint the reported net profit or we can say that
the profit after tax of the asian paint in increased year on year.