 "Asian Paints")
Asian Paints witnessed a remarkable 52.5 per cent increase in its net profit during the 2023-24 (FY24) April-June quarter (first quarter, or Q1). The country’s largest paint maker saw its profits soar to Rs 1,550.4 crore, with margins up in the quarter and double-digit volumes in the decorative paint segment.
During the quarter, the company achieved net sales of Rs 9,153.8 crore, marking a 6.7 per cent growth compared to the previous year. This growth was driven by healthy value expansion in the decorative paint business and strong double-digit revenue growth in the auto original equipment (OE) and general industrial coating sectors.
On a quarter-on-quarter (QoQ) basis, the company’s net sales rose by 4.6 per cent, and net profit increased by 25.6 per cent.
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The profit before interest, depreciation, and tax for Q1FY24 stood at Rs 2,349 crore, representing a significant 42.9 per cent increase from the previous year and a 19.3 per cent rise QoQ.
Furthermore, the company appointed R Seshasayee as the chairman of the board, effective from October 1 until January 22, 2027.
Amit Syngle, managing director and chief executive officer at Asian Paints, stated in the release, “Our domestic decorative business registered double-digit volume growth and relatively healthy value growth, coming on a high base of the previous year. Both the auto OE and the general industrial coating businesses achieved strong double-digit revenue growth, led by growth in the protective and powder coating segment.”
Syngle also mentioned that the international business received solid deliveries from the West Asian region. However, it faced continued macroeconomic challenges and adverse foreign exchange conditions in Asian markets, leading to an overall subdued growth for its international portfolio.
In the home decor category, segments like fabrics, decorative lighting, and unplasticised polyvinyl chloride doors and windows maintained their high growth trajectory in the quarter, according to Syngle. However, the kitchen and bath business segments showed sluggish performance.
“Overall, we have recorded significant improvement in margins, both sequentially as well as on a year‐on‐year basis, aided by strong efforts in driving operational, formulation, and sourcing efficiencies and supported by easing inflation in raw material prices. Looking ahead, we remain focused on pursuing growth and are confident about a robust festival season ahead,” Syngle said.
