Asian Paints Q3 result beat estimates; here are highlights of analyst call

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26 Aug, 2025 12:21

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Asian Paints on January 22 reported a 20.5 percent growth in consolidated profit, in the December quarter, driven by lower tax cost and good operating performance.

The profit had  increased to Rs 779.71 crore from Rs 647.28 crore during the same period last year.

Revenue from operations was at Rs 5,420.28, up 3 percent year-on-year.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 7.7 percent year-on-year to Rs 1,189.4 crore, and margin expanded 96bps to 21.94 percent in the December quarter – both better than analysts’ estimates.

Here are key highlights from Asian Paints' conference call by Narnolia Financial Advisors:

The Paint industry remained impacted due to adverse macroeconomic conditions in the domestic economy which, in turn, impacted demand. The prevailing demand conditions and Budget 2020 will remain the key watch-out for the company.

Monsoon affect volume growth: The company’s domestic decorative business posted a low double-digit volume growth impacted on account of early Diwali and prolonged monsoon.

Economy range products perform well: The company’s economy range of products continued to perform well and will continue focusing on pushing the same strategy in the coming quarters. However, waterproofing and adhesive product range also grew well in 3QFY20.

Real estate slowdown: The home improvement (i.e. Kitchen & Sanitary) remained impacted due to real estate slowdown in project segment. However, retail segment witnessed good growth.

Improvement in industrial coatings JV: The automotive coating JV (PPG-AP) continues to remain affected due to slowdown, witnessed by the domestic automotive industry, while the industrial coatings JV (AP-PPG) witnessed demand improvement on sequential basis compared to the first two quarters led by demand in protective coatings segment. However, lower material prices and contained growth in overhead costs helped improve profitability of both these JVs.

International business: The company's international business remained impacted due to slowdown in Oman and Bangladesh, while Sri Lanka witnessed prolonged monsoon. However, the improvement in Egypt and Bangladesh neutralized the above impact.