Paint major Asian Paints' consolidated net profit surged 34.9% to ₹1,447.7 crore in the October-December 2023-24 against ₹1,072.7 crore in the corresponding period of the previous year. The company’s net sales, during the quarter under review, grew 5.4% to ₹9,074.9 crore against ₹8,607.5 crore in the same period last year. The sales of the company’s domestic decorative business grew 12% in terms of volume and 5.5% in terms of sales.
"The quarter delivered a decorative & industrial coatings combined value growth of 6.1% with a strong double-digit Industrial coatings value growth. The decorative business grew well in the luxury and economy segments to register a robust 12% volume growth and a value growth of 5.5%. 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," says Amit Syngle, MD & CEO, Asian Paints Ltd.
Meanwhile, the international business witnessed a flat sales growth to ₹779.1 crore in the December quarter, as against ₹778.8 crore on the back of macro-economic headwinds, and inflation in key markets of South Asia and Egypt. The profit before tax from the international business stood at ₹58.3 crore, up 57.6%, as against ₹37 crore in the same period last year.
"Our international business saw growth in the Middle East and Africa and registered increased profitability overall. It, however, continued to remain constrained by macroeconomic headwinds, inflationary pressures in key geographies of South Asia and Egypt," Syngle says.
Among categories, the company’s bath-fittings business witnessed a decline in sales by 5% to ₹85.4 crore as against ₹89.8 crore in the same period last year on the back of weak industry demand.
In the kitchen business, the company’s sales remained largely flat at ₹100.1 crore as against ₹100.7 crore in the same period last year after four quarters of degrowth. The company’s white teak witnessed a whopping increase in sales by 18.3% to ₹33.7 crore. The sales of the company’s weatherseal business also over doubled to ₹13.7 crore in the December quarter.
"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. Moving forward, we will maintain focus on driving strong sales growth and continue to invest in multiple initiatives and solutions for our customers, building on our leadership position," says Syngle.
Ahead of the financial results, the share price of Asian Paints closed 1.67% lower at ₹3,242.30. This is in line with the broader BSE Sensex, which closed 1,628.01 points or 2.23% lower at ₹71,500.76.
