Asian Paints on January 17 reported a 34.5 per cent year-on-year rise (YoY) in its consolidated net profit at Rs 1,475.16 crore for the third quarter of the financial year 2023-24 compared to Rs 1,097.06 crore in the year-ago period.
The paint maker recorded a 5.4 per YoY increase in consolidated revenue to Rs 9,104 crore in the December quarter, compared to Rs 8,636.7 crore the previous year. Revenue increased by 7.37 per cent compared to the September quarter.
In the Decorative Business for India, the business had a 12 per cent volume gain and a 5.5 per cent value sales increase.
The earnings before interest, tax, depreciation, and amortization (EBITDA) was Rs 2,056 crore, up from Rs 1,611.4 crore the previous year. The EBITDA margin was 22.6 per cent compared to 18.7 per cent a year earlier.
“Growth was supported by the extended festive season, though we saw some moderation in demand in the latter part of the quarter. Both our Auto OE and General Industrial coating businesses achieved sturdy revenue growths and good profit margins.” said Amit Syngle, Managing Director & CEO.
“We saw a better quarter in the Home Décor space, with new categories making headway, as we made good progress on integrating our offerings within our beautiful homes stores and network. Our margins gained significantly from growth in luxury products and softening raw material prices coupled with operational, formulation and sourcing efficiencies in Q3.” he added.
Furthermore, in Q3FY24, foreign sales were flat at Rs 779.1 crore, compared to Rs 778.8 crore, due to macroeconomic challenges and inflation in key regions such as South Asia and Egypt.
However, in constant currency terms, revenues climbed by 5.2 per cent. The PBT before exceptional items for Q3 FY24 was Rs 58.3 crore, up from Rs 37 crore at the same time last year.
Due to sluggish industry demand, sales in the company’s bath fitting sector fell 5.0 per cent, to Rs 85.4 crores from Rs 89.8 crores. After four consecutive quarters of decline, the kitchen business’s sales in Q3 FY’24 were unchanged at Rs 100.1 crores, compared to Rs 100.7 crores.
On the bright side, White Teak’s sales in Q3 FY’24 increased by 18.3 percent to Rs 33.7 crores, while Weatherseal’s sales more than doubled to Rs 13.7 crore.
Furthermore, brownfield extensions at Khandala and Kasna were completed successfully, increasing installed production capacity from 300,000 KL p.a. to 400,000 KL p.a. and 80,000 KL p.a. to 100,000 KL p.a., respectively.
The shares of Asian Paints on January 17 closed 1.44 percent down at Rs 3,249.95 on BSE.
