- 17 Jan 2024
- ICICIdirect
Asian Paints Q3 Results 2024: Net profit up, meets estimates
ASIANPAINT - 3005 Change: 50.35 (1.70 %)
Asian Paints reported its Q3FY24 numbers on Wednesday afternoon during the market hour. At close, the share price was trading nearly 1.71% lower at around Rs 3,240.60 per share on NSE. Let us look at Asian Paints' Q3FY24 results in detail.
About Asian Paints
Asian Paints is India’s leading paint and decor company and is ranked among the top 7 coatings companies in the world. Asian Paints, along with its subsidiaries, has operations in 15 countries across the world with 27 paint manufacturing facilities, servicing consumers in over 60+ countries.
Crucial parameters
- PE: 63.41
- 52-week high: Rs 3,566.90
- Market Cap: Rs 3,11,734.49 crore
- ROE: 30.65
Share price movement
In the last six months, Asian Paints' share price has fallen by 5.52%. However, in the one-year time frame, the share price has jumped 11.13%. In the last 5 years, despite the recent fall, Asian Paints has delivered over 130% returns to its investors.
How were Asian Paints Q3FY24 results?
Below are key highlights of Asian Paints Q3FY24 results:
Net Sales (Revenue): For Q3FY24, the company reported consolidated net sales of Rs 9,074.9 crore from Rs 8,607.50 crore in Q3FY23, a growth of 5.4% in revenue. Sequentially, the revenue increased from Rs 8,478.57 crore.
PBDIT: Profit before depreciation, interest, tax, other income, and exceptional items] (before sharing in profit of associates) increased by 27.6% to Rs 2,056.1 crore from Rs 1,611.4 crore.
Margins: Compared to Q3FY23, in Q3FY24, the gross margins improved by 510 basis points. PBDIT margin as a % of Net Sales improved to 22.7% from 18.7% in the corresponding period of the previous year and was up from 20.3% in Q2FY24.
Net Profit: Consolidated net profit for the December quarter stood at Rs 1,447.7 crore, registering a growth of 35% from Rs 1,072.7 crore in the same quarter of the previous financial year. Sequentially, the profits have increased from Rs 1,232.39 crore. Standalone Net Profit increased by 32.9% to Rs 1,443.5 crore from Rs 1,085.9 crore in the year-ago period.
How have different segments performed under Asian Paints?
Let us look at the performance of different segments in detail:
International Business
Sales were flat in Q3FY24 at Rs 779.1 crore from Rs 778.8 crore on the back of macro-economic headwinds, and inflation in key markets of South Asia and Egypt. In constant currency terms, sales increased by 5.8%. PBT before exceptional items in Q3FY24 was Rs 58.3 crore as against Rs 37 crore in the corresponding period of the previous year.
Home Décor business
- Bath Fittings business: Sales decreased in Q3FY24 by 5% to Rs 85.4 crore from Rs 89.8 crore on the back of weak industry demand. PBDIT's loss in Q3FY24 was Rs 5.5 crore against a profit of Rs 0.1 crore in the corresponding period of the previous year.
- Kitchen business: Sales were flat in Q3FY24 at Rs 100.1 crore from Rs 100.7 crore after four quarters of degrowth. PBDIT was Rs 4.2 crore in Q3 FY’24 as against a loss of Rs 3.3 crore in the corresponding period of the previous year.
- White Teak and Weatherseal: Sales at White Teak in Q3FY24 increased by 18.3% to Rs 33.7 crores. Sales at Weatherseal more than doubled to Rs 13.7 crores.
Industrial Business
- APPPG: Sales increased in Q3FY24 by 10.1% to Rs 288.0 crore from Rs 261.6 crore. PBT in Q3FY24 was Rs 33.2 crore as against Rs 25.6 crore in the corresponding period of the previous year.
- PPGAP: Sales increased in Q3FY24 by 12.3% to Rs 576.2 crore from Rs 513.3 crore. PBT in Q3FY24 was Rs 128.0 crore as against Rs 91.4 crore in the corresponding period of the previous year.
Result Summary
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 they saw some moderation in demand in the latter part of the quarter.
Both Auto OE and General Industrial coating businesses achieved sturdy revenue growths and good profit margins. Their International Business saw growth in the Middle East and Africa and registered increased profitability overall. It, however, continued to remain constrained by macroeconomic headwinds, and inflationary pressures in key geographies of South Asia and Egypt.