Asian Paints announced their financial results for the quarter ended December 31, 2023.

“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 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. 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. 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," said Amit Syngle, Managing Director & CEO of Asian Paints Limited.

Key Financial Highlights

Asian Paints Consolidated Results, Q3 FY’24:

• Consolidated Net Sales increased by 5.4% to ₹ 9,074.9 crores from ₹ 8,607.5 crores.
• Improvement in gross margins by about 510 basis points in Q3 FY’24 as compared to Q3 FY’23.
• PBDIT [Profit before depreciation, interest, tax, other income, and exceptional items] (before share in profit of associates) increased by 27.6% to ₹ 2,056.1 crores from ₹ 1,611.4 crores.
• PBDIT Margin as % to Net Sales improved to 22.7% from 18.7% in the corresponding period of the previous year.
• Profit before exceptional items and tax increased by 33.1% to ₹ 1,967.8 crores from ₹ 1,478.2 crores.
• Net Profit after minority interest increased by 35.0% to ₹ 1,447.7 crores from ₹ 1,072.7 crores.

Asian Paints Consolidated Results, 9 M FY’24:

• Consolidated Net Sales increased by 4.2% to ₹ 26,680.7 crores from ₹ 25,617.0 crores.
• Improvement in gross margins by about 600 basis points in 9M FY’24 as compared to 9M FY’23.
  • PBDIT [Profit before depreciation, interest, tax, other income, and exceptional items] (before share in profit of associates) increased by 34.1% to ₹ 5,893.6 crores from ₹ 4,395.1 crores.
    • PBDIT Margin as % to Net Sales improved to 22.1% from 17.2% in the previous year.
    • Profit before exceptional items and tax increased by 43.0% to ₹ 5,723.7 crores from ₹ 4,003.2 crores.
      • Net Profit after minority interest increased by 46.3% to ₹ 4,203.5 crores from ₹ 2,872.3 crores.

Asian Paints Standalone Results, Q3 FY’24:

• Net Sales increased by 5.2% to ₹ 7,883.3 crores from ₹ 7,492.2 crores.
• Improvement in gross margins by about 550 basis points in Q3 FY’24 as compared to Q3 FY’23.
• PBDIT for the quarter increased by 26.9% to ₹ 1,897.1 crores from ₹ 1,494.8 crores.
  • PBDIT Margin as % to Net Sales improved to 24.1% from 20.0% in the corresponding period of the previous year.
    • Profit before tax increased by 32.7% to ₹ 1,914.2 crores from ₹ 1,443.0 crores.
      • Net Profit increased by 32.9% to ₹ 1,443.5 crores from ₹ 1,085.9 crores.

 Asian Paints Standalone Results, 9 M FY’24:

• Net Sales increased by 4.1% to ₹ 23,283.8 crores from ₹ 22,363.9 crores.
• Improvement in gross margins by about 640 basis points in 9M FY’24 as compared to 9M FY’23.
• PBDIT for the period increased by 34.6% to ₹ 5,481.6 crores from ₹ 4,072.9 crores.
• PBDIT Margin as % to Net Sales improved to 23.5% from 18.2% in the corresponding period of the 
• Profit before tax increased by 42.9% to ₹ 5,483.0 crores from ₹ 3,835.6 crores.
• Net Profit increased by 43.5% to ₹ 4,112.2 crores from ₹ 2,866.5 crores.
  

Segment Highlights:

International Business 

Sales was flat in Q3 FY’24 at ₹ 779.1 crores from ₹ 778.8 crores 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%. PBT before exceptional items in Q3 FY’24 was ₹ 58.3 crores as against ₹ 37.0 crores in the corresponding period of previous year.

Sales decreased by 1.8% in 9M FY’24 to ₹ 2,249.1 crores from ₹ 2,290.0 crores. PBT before exceptional item was ₹ 125.2 crores in 9M FY’24 from ₹ 118.3 crores in the corresponding period of previous year.

 Home Décor Business:

Bath Fittings business: Sales decreased in Q3 FY’24 by 5.0% to ₹ 85.4 crores from ₹ 89.8 crores on the back of weak industry demand. PBDIT loss in Q3 FY’24 was ₹ 5.5 crores against profit of ₹ 0.1 crores in the corresponding period of the previous year.

Sales decreased by 18.8% in 9M FY’24 to ₹ 251.5 crores from ₹ 309.6 crores. PBDIT loss was ₹ 8.4 crores in 9M FY’24 as against profit of ₹ 5.5 crores in the corresponding period of the previous year.

 Kitchen business: Sales was flat in Q3 FY’24 at ₹ 100.1 crores from ₹ 100.7 crores after 4 quarters of de-growth. PBDIT was ₹ 4.2 crore in Q3 FY’24 as against a loss of ₹ 3.3 crores in the corresponding period of previous year.

Sales decreased by 10.6 % in 9M FY’24 to ₹ 292.8 crores from ₹ 327.5 crores. The business achieved PBDIT of ₹ 5.7 crores as against loss of ₹ 8.2 crores in the corresponding period of previous year.

White Teak and Weatherseal: Sales at White Teak in Q3 FY’24 increased by 18.3% to ₹ 33.7 crores. Sales at Weatherseal more than doubled to ₹ 13.7 crores.

Sales at White Teak increased by 17.9% in 9M FY’24 to ₹ 85.7 crores. Sales at Weatherseal more than doubled in 9M FY’24 to ₹ 36.1 crores. Both these recent acquisitions are gaining from synergies with the Asian Paints network.

 Industrial Business:

APPPG: Sales increased in Q3 FY’24 by 10.1% to ₹ 288.0 crores from ₹ 261.6 crores. PBT in Q3

FY’24 was ₹ 33.2 crores as against ₹ 25.6 crores in the corresponding period of previous year.

APPPG Sales increased by 14.3% in 9M FY’24 to ₹ 832.8 crores from ₹ 728.6 crores. PBT almost doubled to ₹ 100.7 crores in 9M FY’24 as against ₹ 51.3 crores in the corresponding period of previous year.

 PPGAP: Sales increased in Q3 FY’24 by 12.3% to ₹ 576.2 crores from ₹ 513.3 crores. PBT in Q3

FY’24 was ₹ 128.0 crores as against ₹ 91.4 crores in the corresponding period of previous year.

PPGAP Sales increased by 10.4% in 9M FY’24 to ₹ 1,543.5 crores from ₹ 1,398.6 crores. PBT was

₹ 287.2 crores in 9M FY’24 as against ₹ 180.1 crores in the corresponding period of previous year.

Brownfield expansions at both Khandala and Kasna have been completed with installed production capacity increasing 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.