Last Updated on January 18, 2024 by BFSLTeam BFSLTeam
On January 17, 2024, Asian Paints Limited (BSE, NSE: ASIANPAINT) announced its Q3 2023-24 results, recording a rise in Net Sales by over 5%, and PAT up by more than 30%.
Table of Content
General Result Takeaways
Here are the overall highlights of Q3 results:
- Consolidated Net Sales for Q3 stood at ₹9,075 Cr, a rise of 5.4%.
- Consolidated PBDIT Margin rose by 400 bps and stood at 22.7%. This was largely led by work on sourcing, a soft raw material environment, and formulation efficiencies.
- For Q3, consolidated PAT (Profit After tax) was up by 34.5%.
- Q3 saw a significant volume growth of 12% and a value sales growth of 5.5% in the Decorative Business segment in India. This marks a consistent double-digit growth trend as far as volumes are concerned (based on 4yr CGR)
- In the Industrial Business segment, there was double-digit revenue growth.
- Q3 witnessed an overall revenue growth of 6.1% in the Coatings Business segment.
- The Company witnessed a boost in saliency in the Home Decor segment with positive progress in the Company’s integrated offerings related to its Beautiful Homes network and stores.
- The international side of the business recorded a rise in profitability. There was significant growth in Africa and the Middle East.
- Regarding the international side of business, business in key markets of Egypt and South Asia was constrained due to inflation and macroeconomic headwinds.
Additional Read: Q3 Results Dashboard
Financial Strength and Segment Features
Q3 has proved a quarter of financial growth for the Indian and globally recognised paint giant. Here are some details of Q3 results from a financial perspective and a segment-wise view of the business:
- The consolidated Net Sales of the Company have risen by 5.4% to reach ₹9,074.9 Cr from ₹8,607.5 Cr.
- Relative to Q3 FY23, gross margins have improved in Q3 FY24. The improvement is about 510 bps.
- PBDIT Margin as a percentage to Net Sales improved from 18.7% in Q3 of the last fiscal year to 22.7% for Q3 FY24.
- Regarding international business, sales remained flat due to macroeconomic challenges felt in key international markets of Egypt and South Asia.
- Concerning the Home Decor business, sales were flat in the segments of Kitchen and Bath Fittings.
- Sales in the segment of White Teak and Weatherseal increased in Q3 FY24, by 18.3% to reach ₹33.7 Cr. These are recent acquisitions that have witnessed gains after merging with Asian Paints.
- In terms of the industrial segment of the company, APPPG sales witnessed a rise of 10.1% in Q3 FY24, reaching ₹288.0 Cr, relative to the same quarter of the previous fiscal year when it was at ₹261.6 Cr.
- PPGAP sales also saw a rise in Q3 FY24, by 12.3% compared to the same quarter of the previous financial year.
- Q3 witnessed the completion of Brownfield expansions at Kasna and Khandala with installed capacity growing from 80,000 KL p.a. to 100,00 KL p.a and 300,000 KL p.a. to 400,000 p.a., respectively.
Q3 Result Details from the Management Commentary
The MD and CEO of Asian Paints Limited had some key details of the results to share and these are mentioned below:
- Q3 has delivered healthy combined growth via the segments of Industrial and Decorative Coatings. The growth of these two segments together makes up 6.1%.
- In terms of the Decorative Business, there was a 12% volume growth in the areas of Luxury and Economy. However, in the latter part of the quarter, as the festive season was declining, there was less demand.
- Strong revenue growth was witnessed by the General Industrial and Auto OE segments.
- New categories made positive headway in the Home Decor business segment.
- The Company will continue to invest in new initiatives to drive growth soon.
Additional Read: Asian Paints Share Price
Q3 FY24 Result Summary
One of the leaders in the Indian home decor industry, especially in the field of paints, Asian Paints is ranked among the top 8 companies in its industry and sector.
It has extended its operations in India as well as globally over the years and now has a consolidated turnover of ₹34,489 crores, not to mention an impressive market capital of approximately ₹3,100 billion. The Company, at the close of Q3, has operations in 15 countries and boasts 27 manufacturing facilities. It has emerged as a key player in the Home Decor segment and Q3 results show this as an expanding business for the company and its many businesses under the names of Asian Paints Berger, Apco Coatings, and SCIB Paints, to name a few.
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