Asian Paints Limited- Q2 Results

Introduction

Asian Paints Limited is India’s largest paints company in terms of market share and is currently headquartered in Mumbai, Maharashtra. The company was founded nearly a century ago, in 1942, and has been a market leader in paints since 1967. Asian Paints Ltd. manufactures a diverse range of paints and offers wall coverings, water proofing, adhesives, and other services. The company’s turnover is close to ₹345 billion, ranking it among the top ten decorative coatings companies globally.

Asian Paints declared its financial results for Q2 FY 2023-24 on October 26th, reporting a consolidated net profit of ₹1,205.4 Cr, up 54% YoY. Here is a detailed breakdown of its financial performance during the period under review.

Key Financial Metrics

Performance Highlights (Consolidated)

• Asian Paints Ltd. reported a consolidated net profit of ₹1,205.4 Cr for Q2 FY 2023-24, up 54% YoY from ₹782.7 Cr.
• The company’s revenue from operations grew 0.3% to ₹8,478.57 Cr during the period under review.
• The Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) stood at ₹1,716.2 Cr, with the EBITDA margin at 20.3%.
• As per an exchange filing, the company’s net sales stood at ₹8,451.9 Cr, up 0.3% YoY.

India’s largest paints maker, Asian Paints, disclosed its financial results for Q2 FY 2023-24 on October 26th. The company reported that the consolidated net profits were up a whopping 54% YoY at ₹1,205.4 Cr, compared to ₹782.7 Cr during Q2 FY 2022-23. Meanwhile, the company’s standalone net sales stood at ₹7315.7 Cr.

In terms of revenue from operations, the company reported an increase of 0.3% to ₹8,478.57 Cr during this period. However, both profits and revenue fell below analysts’ estimates for the quarter.

The company’s profit before depreciation, interest, tax, other income, and exceptional items (PBDIT) rose 39.8% YoY to ₹1,716.2 Cr from ₹1,227.7 Cr. For this reason, the PBDIT margin as a percentage to net sales improved to 20.3% from 14.6% during the same period last year.

Also Read: Asian Paints Share Price

Segment Highlights

On the other hand, the sales on the international front fell by 3.9% to ₹775 Cr from ₹806 Cr due to macroeconomic and forex challenges in important markets like Egypt and South Asia. However, sales increased by 1.9% in constant currency terms.

The company also reported that sales fell by 20% to ₹81.4 Cr in the bath fittings business on the back of weak consumer sentiment. Similarly, the sales declined by 17.9% to ₹96.8 Cr in the kitchen business, while sales at white teak during the period under review rose 8.5% to ₹26.1 Cr. Additionally, sales at Weatherseal increased to ₹12.6 Cr.

Management Commentary

Major Announcements

• The company’s board of directors recommended an interim dividend of ₹5.15 per equity share (face value of ₹1 each) for the financial year ending 31st March 2024.

Asian Paints Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹17,064.51 Cr	₹17,660.88 Cr
Total Income	₹17,258.95 Cr	₹18,023.15 Cr
Total Expenses	₹14,768.81 Cr	₹14,327.05 Cr
Profit Before Tax	₹2,500.78 Cr	₹3,755.90 Cr
Net Profit	₹1,839.86 Cr	₹2,807.23 Cr
Total Comprehensive Income	₹1,864.70 Cr	₹2,867.17 Cr

Asian Paints Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹9,182.31 Cr	₹8,478.57 Cr
Total Income	₹9,379.38 Cr	₹8,643.77 Cr
Total Expenses	₹7,305.09 Cr	₹7,021.96 Cr
Profit Before Tax	₹2,104.96 Cr	₹1,650.94 Cr
Net Profit	₹1,574.84 Cr	₹1,232.39 Cr
Total Comprehensive Income	₹1,635.41 Cr	₹1,231.76 Cr

Asian Paints Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹14,930.57 Cr	₹15,456.18 Cr
Total Income	₹15,161.52 Cr	₹15,845.25 Cr
Total Expenses	₹12,768.91 Cr	₹12,276.47 Cr
Profit Before Tax	₹2,392.61 Cr	₹3,568.78 Cr
Net Profit	₹1,780.57 Cr	₹2,668.62 Cr
Total Comprehensive Income	₹1,824.17 Cr	₹2,714.74 Cr

Asian Paints Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹8,113.96 Cr	₹7,342.22 Cr
Total Income	₹8,330.73 Cr	₹7,514.52 Cr
Total Expenses	₹6,312.58 Cr	₹5,963.89 Cr
Profit Before Tax	₹2,018.15 Cr	₹1,550.63 Cr
Net Profit	₹1,508.37 Cr	₹1,160.25 Cr
Total Comprehensive Income	₹1,547.53 Cr	₹1,167.21 Cr

Asian Paints Limited: Consolidated Balance Sheet

Particulars	As of September 30, 2023
Total Non-Current Assets	₹10,779.18 Cr
Total Current Assets	₹16,642.83 Cr
Total Assets	₹27,422.01 Cr
Total Equity	₹17,177.91 Cr
Total Non-Current Liabilities	₹1,871.94 Cr
Total Current Liabilities	₹8,372.16 Cr
Total Equity and Liabilities	₹27,422.01 Cr

Stock Performance

Asian Paints Limited disclosed its financial results for the second quarter of the fiscal year on October 26th. The company’s shares opened at ₹3,059.95 on Thursday but fell 3.36% (by ₹102.70), closing at ₹2,958.40 apiece on BSE.

About the Company

Asian Paints Ltd. is the country’s leading paint and decor company. It is also ranked among the world’s top 8 coatings companies, boasting a consolidated turnover of around ₹34,489 Cr and a market cap of approximately ₹3,000 billion. Along with its subsidiaries, the company operates in fifteen countries and boasts 27 paint manufacturing units, catering to customers from more than 60 countries. Moreover, the company extends a diverse range of home decor products, creating a unique place for itself in the market.

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Sources:

https://www.asianpaints.com/more/investors/investors-landing-page.html?q=disclosures-under-regulation-of-sebi-lodr-regulations

https://www.asianpaints.com/more/investors.html

https://www.asianpaints.com/content/dam/asianpaints/website/secondary-navigation/press-releases/2023-2024/Asian%20Paints%20Press%20Release%20-%20Q2FY24%20Results.pdf