18-Jan-2024
2 mins read
Asian Paints, a leading paint manufacturer, has reported a notable increase in its consolidated net profit for the third quarter of the financial year 2023-24. The company’s net profit surged 34.4% to Rs 1,475.16 crore, compared to Rs 1,097.06 crore in the same period last year. This remarkable growth is also evident sequentially, with a 19.69% increase from the previous quarter.
Revenue and Sales Highlights
The revenue figures for Asian Paints also showed a positive trend. The company’s consolidated revenue rose 5.4% year-on-year, reaching Rs 9,104 crore in the December quarter, up from Rs 8,636.7 crore in the previous year. This revenue increases also marked a 7.37% growth from the September quarter. The Decorative Business in India played a significant role, achieving 12% volume growth and a 5.5% increase in value sales.
Earnings and Margins
Asian Paints’ EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) for the quarter was impressive, standing at Rs 2,056 crore compared to Rs 1,611.4 crore in the previous year. The EBITDA margin also improved, reaching 22.6%, up from 18.7% in the year-ago period.
Amit Syngle, Director & CEO of Asian Paints, attributed this growth to the extended festive season and robust performance in the Auto OE and General Industrial coating businesses. He also highlighted the improvement in the Home Décor sector and the integration of new categories within the company’s retail network.
International Business and Other Segments
The company’s international business remained steady, with sales flat at Rs 779.1 crore. Despite macroeconomic challenges in South Asia and Egypt, the company saw a 5.2% increase in sales in constant currency terms. However, the bath fitting business experienced a 5.0% decline in sales, while the kitchen business showed no growth after four quarters of decline. In contrast, sales in the White Teak and Weatherseal segments increased significantly.
Expansion and Production Capacity
Asian Paints also completed brownfield expansions at Khandala and Kasna, enhancing its production capacity significantly. This strategic move will likely bolster the company’s manufacturing capabilities in the coming years.
Despite the strong financial performance, Asian Paints’ shares closed 1.44% lower at Rs 3,249.95 on the BSE on January 17. Asian Paints’ third-quarter results for FY 2023-24 demonstrate a robust financial performance underpinned by solid growth in revenue, profits, and strategic expansions across various segments.