- 11 May 2023
- ICICI Securities
Asian Paints Q4 Results 2023: Upbeat performance
Asian Paints Ltd | CMP: 2926 | Market Cap: 280,622.97
Asian Paints reported an upbeat performance in Q4FY23
Q4FY23 Earnings Summary
View: We believe Asian Paints has reported a strong performance in Q4FY23 led by double digit volume growth. On the margin front also, sequential recovery in margin is encouraging. The exit EBITDA margin at ~21% is almost near to its peak level margin clocked in FY22. This was largely driven by benign raw material prices and better operating leverage. For FY23, revenue came in higher by ~19% YoY to Rs 34488 crore supported by ~14% volume growth YoY (3 Year CAGR: 19%) led by strong demand of decorative paints. Asian Paints was able to take the benefit of declining raw material prices which led to expansion of margins. We maintain our positive stance on the stock given the demand recovery and easing raw material costs.
Impact: Positive