Asian Paints on October 26 reported a consolidated net profit of Rs 1,232.39 crore for the second quarter of the financial year 2023-24, up 53.31 percent from Rs 803.83 crore in the year-ago period. Sequentially the profit was down 21.74 percent.
The paint manufacturer reported an 0.03 percent year-on-year (YoY) up in consolidated revenue at Rs 8 ,478.57 crore in the September quarter against Rs 8,457.57 crore in the year-ago period. The revenue was down 7.66 percent from the June quarter.
Profit was largely in line, but revenue missed estimates. A poll of four brokerages had pegged Asian Paints Q2 revenue at Rs 9036.4 crore and net profit at Rs 1,287.4 crore.
"The Domestic Decorative Paint business for Q2 was muted, registering a flat value sale with a 6 percent volume growth. The erratic monsoon impacted market sentiment potentially leading to deferment of sales to October given the late Diwali this year Looking towards the second half of the year, we remain optimistic about improved demand conditions well supported by the longer festive season and the overall buoyant domestic economic growth." said Amit Syngle, Managing Director & CEO of Asian Paints Ltd.
The earnings before interest, tax, depreciation, and amortization (EBITDA) came in at Rs 1,717 crore against Rs 1,219.3 crore in the year-ago quarter. The EBITDA margin stood at 20.2 percent against 14.4 percent in the year-ago period.
An interim dividend amounting to Rs. 5.15 for each equity share with a face value of Re. 1 will be distributed for the fiscal year concluding on 31st March 2024. The set date to establish shareholders eligible for this interim dividend is Friday, 3rd November 2023. The distribution to the shareholders is scheduled to commence from Monday, 13th November 2023 onwards, the company said in a regulatory filing.
In Q2 FY24, international business sales dropped by 3.9 percent due to challenges in South Asia and Egypt but increased by 1.9 percent in constant currency. Home Décor witnessed a decline in both Bath Fittings and Kitchen sales, while acquisitions White Teak and Weather seal experienced growth. The Industrial sector's APPPG sales grew by 11.4 percent in Q2 FY24.
Asian Paints shares sharply lower on revenue disappointment in Q2. Shares of Asian Paints are trading at Rs 2992.00 on the National Stock Exchange, down 2.25 percent at 1:57 pm.
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