Asian Paints' growth supported by extended festive season, says CEO Amit Syngle

Moving forward, Asian Paints will maintain focus on driving strong sales growth and continue to invest in multiple initiatives and solutions, said the company management

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The growth of Asian Paints was sustained by the prolonged festive season, although there was a slight slowdown in demand towards the end of the quarter, said Amit Syngle, Managing Director & CEO of Asian Paints.  The company's Auto OE and General Industrial coating segments experienced robust revenue growth and favorable profit margins, he added.

“The quarter delivered a Decorative & Industrial coating combined value growth of 6.1 percent with a strong double-digit Industrial coatings value growth. The Decorative Business grew well in Luxury and Economy segments to register a robust 12 percent volume growth and a value growth of 5.5 percent, " Syngle said in Asian Paints' earnings press release.

"Our International Business saw growth in the Middle East and Africa and registered increased profitability overall. It, however, continued to remain constrained by macroeconomic headwinds, inflationary pressures in key geographies of South Asia and Egypt," he said talking about the international business.

ALSO READ: Asian Paints Q3: Net profit up 34% to Rs 1,475 crore, revenue up 5%; meets estimates

In the Home Décor space, Asian Paints had a more favourable quarter, with new categories gaining traction. Syngle said the company made significant progress in integrating its offerings within Beautiful Homes stores and network. The company's margins saw notable improvement due to the growth in luxury products and the easing of raw material prices, along with operational, formulation, and sourcing efficiencies in Q3, he added.

"Moving forward, we will maintain focus on driving strong sales growth and continue to invest in multiple initiatives and solutions for our customers, building on our leadership position," said Syngle.

The company on January 17 reported a consolidated net profit of Rs 1,475.16 crore for the third quarter of the financial year 2023-24, up 34.4 percent from Rs 1,097.06 crore in the year-ago period. Sequentially, the profit was up 19.69 percent.

The paint manufacturer reported a 5.4 percent year-on-year (YoY) up in consolidated revenue at Rs 9,104 crore in the December quarter against Rs 8,636.7 crore in the year-ago period.

Shares of Asian Paints ended 1.43 percent lower at Rs 3,249.70 on the NSE on January 17.