Asian Paints Q3 Results: Net profit rises 34% to ₹1,475 crore, revenue up 5% YoY

Asian Paints Q3 Results: Asian Paints announced October-December quarter results for fiscal 2023-24 (Q3FY24), reporting a rise of 34.5 per cent in its consolidated net profit at ₹1,475 crore, compared to ₹1,097 crore in the year-ago period. The country's largest paint manufacturing company's revenue from operations in the third quarter of current fiscal rose 5.4 per cent at ₹9,104 crore, compared to ₹8,636.7 crore in the corresponding period last year.

The company's earnings before interest, tax, depreciation, and amortization (EBITDA) in the December quarter came in at ₹2,056 crore compared to ₹1,611.4 crore in the year-ago period. The EBITDA margin stood at 22.6 per cent compared to 18.7 per cent in the same period last year.

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The decorative business grew in luxury and economy segments to register a robust 12 per cent volume growth and a value growth of 5.5 per cent. The company delivered a decorative and industrial coatings combined value growth of 6.1 per cent with a robust double-digit Industrial coatings value growth in the December quarter. Soft raw material environment and work on sourcing and formulation efficiencies are driving margins for the company.

The company's bath fitting business experienced a five per cent decline in sales, dropping to ₹85.4 crore from ₹89.8 crore due to weak industry demand. Under international business, sales was flat in Q3 FY24 at ₹779.1 crore from ₹778.8 crore on the back of macro-economic headwinds, inflation in key markets of South Asia and Egypt. In constant currency terms, sales increased by 5.2 per cent.

The kitchen business, after four consecutive quarters of de-growth, saw flat sales in the December quarter at ₹100.1 crore compared to ₹100.7 crore. The company's White Teak's sales in Q3FY24 rose by 18.3 per cent to ₹33.7 crore, and Weatherseal witnessed a significant increase with sales more than doubling to ₹13.7 crore.

‘’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. Our International Business saw growth in the Middle East and Africa and registered increased profitability overall,'' said ” said Amit Syngle, Managing Director & CEO of Asian Paints Limited.

‘’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” added Syngle.

On Wednesday, shares of Asian Paints settled 1.67 per cent lower at ₹3,242.30 apiece on the BSE.