Asian Paints announced on January 17 that its consolidated net profit for the third quarter of the 2023–24 fiscal year was Rs 1,475.16 crore, up 34.4 percent from Rs 1,097.06 crore during the same period last year.The profit increased 19.69 percent sequentially.
The paint maker reported a 5.4 percent YoY increase in consolidated sales in the December quarter, coming in at Rs 9,104 crore as opposed to Rs 8,636.7 crore in the same period last year.Revenue increased by 7.37 percent in comparison to the September quarter. In the Decorative Business for India, the company saw a gain in volume of 12 percent and value sales of 5.5 percent.
Profit and revenue were in line with forecasts, as three brokerage projections for the October–December quarter indicated that revenue would likely total between Rs 9,200 crore and Rs 9,330 crore. Analysts had projected a 30% year-over-year increase in Asian Paints’ net earnings for the third quarter.
Compared to Rs 1,611.4 crore in the same quarter last year, the earnings before interest, tax, depreciation, and amortization (EBITDA) came in at Rs 2,056 crore. Compared to the same period last year, the EBITDA margin was 18.7%, whereas it was currently 22.6%.
“The prolonged holiday season helped growth, but in the last quarter of the year, demand did drop somewhat. Our General Industrial and Auto OE coating divisions both had strong profit margins and robust sales growth.” stated Amit Syngle, CEO and Managing Director.
“We had a better quarter in the home décor market, with new categories gaining traction and good progress being made in the integration of our products across our network of beautiful homes stores. Our profits increased dramatically in Q3 as a result of the rise in luxury goods, the decline in the price of raw materials, and improvements in sourcing, formulation, and operations,” he continued.
Furthermore, due to macroeconomic headwinds and inflation in important regions like South Asia and Egypt, sales for the foreign division in Q3FY24 remained constant at Rs 779.1 crore as opposed to Rs 778.8 crore. However, sales rose by 5.2% when expressed in constant currency. Prior to unusual factors, the PBT for Q3 FY24 was Rs 58.3 crore, up from Rs 37 crore during the same period the previous year.
Due to the sluggish industry demand, the company’s bath fitting division saw a 5.0 percent loss in revenues, falling to Rs 85.4 crores from Rs 89.8 crores. Following four quarters of de-growth, the kitchen business saw flat revenues in Q3 FY’24 at Rs 100.1 crores compared to Rs 100.7 crores. Positively, Weatherseal saw a large gain in sales, more than doubling to Rs 13.7 crores, while White Teak saw an increase in sales of 18.3 percent to Rs 33.7 crores in Q3 FY’24.
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