Asian Paints Q3 Results: Asian Paints reported October–December quarter fiscal 2023–24 (Q3FY24) results, indicating a 34.5% increase in consolidated net profit to ₹1,475 crore from ₹1,097 crore in the same period last year. The income generated by the operations of the largest paint manufacturing firm in the country increased by 5.4% to ₹9,104 crore during the third quarter of the current fiscal year, as opposed to ₹8,636.7 crore during the same period the previous year.
In the December quarter, the company’s earnings before interest, tax, depreciation, and amortization (EBITDA) were ₹2,056 crore, up from ₹1,611.4 crore in the same period last year. During the same period last year, the EBITDA margin was 18.7%; this year, it was 22.6%. The decorative business expanded in both the luxury and economic segments, resulting in a healthy 12% volume rise and a 5.5% value increase. In the December quarter, the firm achieved a 6.1% combined value rise in decorative and industrial coatings, with strong double-digit growth in industrial coatings. The company’s margins are being driven by the soft raw material environment as well as efforts to improve sourcing and formulation efficiency.
Due to weak industry demand, the company’s bath fitting division saw a 5% dip in revenues, falling from ₹89.8 crore to ₹85.4 crore. Sales of the foreign business were flat in Q3 FY24 at ₹779.1 crore from ₹778.8 crore due to macroeconomic headwinds and inflation in Egypt and South Asia, two important markets. In terms of constant currency, sales went up 5.2%.
Asian Paints Q3 Results
After four consecutive quarters of de-growth, the kitchen business recorded flat sales in the December quarter, at ₹100.1 crore compared to ₹100.7 crore. In Q3FY24, the company’s White Teak sales increased by 18.3% to ₹33.7 crore, while Weatherseal sales more than doubled to ₹13.7 crore.
‘The longer festive season aided growth, but demand moderated in the latter part of the quarter. Both our Auto OE and General Industrial coatings businesses experienced strong revenue growth and profit margins. Our International Business experienced growth in the Middle East and Africa, as well as increasing overall profitability, said Amit Syngle, Managing Director & CEO of Asian Paints Limited.
We had a better quarter in the Home Décor market, with new categories making ground, as we made good progress integrating our offers within our Beautiful Homes stores and network. In Q3, our margins increased significantly due to growth in luxury products and lower raw material prices, as well as operational, formulation, and sourcing efficiencies, Syngle noted.
On Wednesday, Asian Paints shares closed 1.67 percent lower at ₹3,242.30 on the BSE.
