Asian Paints on May 9 reported a consolidated net profit of Rs 1,275.3 crore for the March quarter, posting a rise of 1.3 percent from Rs 1258.41 crore a year ago.
The total revenue of the company stood at Rs 8,730.76 crore, down 0.64 percent from Rs 8,787.34 crore last year, it said in a regulatory filing.
The revenue and profit missed estimates. The topline was expected to come in at Rs 9,017 crore for the quarter gone by, according to a Moneycontrol poll of seven brokerages, inching up 2.6 percent on-year from Rs 8,787 crore in the same quarter in the year-ago period. Profit after tax was expected around Rs 1,313 crore for the March quarter, up 4.4 percent from Rs 1,258 crore last year.
Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 1,692 crore down 9.3 percent. EBITDA margins have declined by 170 bps YoY to 21.1 percent.
The Board suggested a final dividend of Rs 28.15 per share, in addition to the interim dividend of Rs 5.15 per share declared in October 2023. The total dividend for FY’24 stands at Rs 33.30 per share, with a payout ratio of 60 percent.
"We crossed the ₹ 35,000 crores consolidated revenue milestone in FY2024. Our Decorative & Industrial coatings combined, delivered a volume growth of 10 percent and value growth of 3.9 percent for the year with our Industrial segment registering double-digit value growth. Looking ahead, we remain confident about a pick-up in demand conditions with a favorable monsoon forecast. We will continue to innovate with speed and invest in our brand, focusing on our consumers and keeping their interests at the forefront.” said Amit Syngle, Managing Director and CEO.
Syngle also noted that they made good progress on launching new collections and expanding our store footprint as well as integrating the Home Décor offerings within the company's Beautiful Homes network. "Profits for the year have grown in strong double digits supported by subdued material prices coupled with sourcing and formulation efficiencies." he added.
The company's automotive coatings business crossed the Rs 2,000 crores revenue mark in the year. The Decorative Business (India) registered volume growth of 10 percent however revenue declined by 1.8 percent in Q4 FY’24. The revenue from decorative business was impacted by weak demand and downtrading in Q4FY24, and price cuts across categories.
Home Decor Business
Bath Fittings business: Sales dropped by 8 percent in Q4 FY’24 to Rs. 88.7 crores from Rs. 96.4 crores last year due to weak retail demand.
PBDIT suffered a loss of Rs. 10.0 crores in Q4 FY’24 compared to a profit of Rs. 1.1 crores in the same period last year. For the full fiscal year FY’24, sales fell by 16.2 percent to Rs. 340.1 crores from Rs. 406.0 crores last year, resulting in a PBDIT loss of Rs. 18.4 crores compared to a profit of Rs. 6.6 crores in the previous year.
Kitchen business: Sales rose by 2.8 percent in Q4 FY’24 to Rs 100.7 crores from Rs 97.9 crores.
PBDIT was Rs 2.7 crores in Q4 FY’24 compared to a loss of Rs. 7.4 crores in the same period last year. However, for FY’24, sales decreased by 7.5 percent to Rs 393.5 crores from Rs 425.5 crores last year, with PBDIT at Rs 8.5 crores compared to a loss of Rs 15.6 crores in the previous year.
White Teak and Weatherseal: Sales at White Teak grew by 33.3 percent in Q4 FY’24 to Rs 47.7 crores, while Weatherseal sales increased by 63.4 percent to Rs 15.6 crores. For FY’24, White Teak sales rose by 23 percent to Rs 133.4 crores, and Weatherseal sales more than doubled to Rs 51.7 crores, benefiting from synergies with the Asian Paints network.
Industrial business: APPPG sales increased by 8.1 percent in Q4 FY’24 to Rs 313.2 crores, with PBT up by 2 percent to Rs 33.5 crores. For FY’24, APPPG sales rose by 12.6 percent to Rs. 1,146.0 crores, and PBT increased by 59.6 percent to Rs. 134.2 crores.
PPGAP sales grew by 10.2 percent in Q4 FY’24 to Rs 471.2 crores, with PBT up by 24 percent to Rs 68.9 crores. For FY’24, PPGAP sales increased by 10.3 percent to Rs. 2,014.7 crores, and PBT surged by 51.1 percent to Rs 356 crores.
International Business
In Q4 FY’24, sales rose by 2.3 percent to Rs 812.3 crores from Rs 794.4 crores, with a 4.7 percent increase in constant currency terms. PBT before exceptional items was Rs 44.2 crores, compared to Rs 39.4 crores in the same period last year.
However, for the full fiscal year FY’24, sales dropped by 0.7 percent to Rs 3,061.5 crores from Rs 3,084.4 crores, attributed to economic uncertainty, forex crisis, and liquidity issues in key markets in Asia and Africa.
Despite this, there was a 3.9 percent growth in constant currency terms. PBT before exceptional items for FY’24 stood at Rs 169.5 crores, up from Rs 157.7 crores in the previous year.
Following the earnings, shares of Asian Paints were trading 4.22 percent down at Rs 2724.20 on BSE at 2:37 pm.
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