Asian Paints Limited- Q2 Results

Last Updated on October 27, 2023 by BFSLTeam BFSLTeam

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