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Asian Paints Q2FY24 results: Net profit rises 54% to Rs 1,205 crore

On a quarter-on-quarter (Q-o-Q) basis, the company's net sales decreased by 7.7 per cent, while net profit declined by 22.2 per cent

Asian Paints

Sharleen Dsouza Mumbai

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In the July-September quarter, Asian Paints witnessed a remarkable 54 per cent increase in its net profit. As the country’s largest paint manufacturer, the company’s profits surged to Rs 1,205 crore due to improved margins and a 6 per cent increase in volumes within the decorative paint segment.

During this quarter, the company’s net sales reached Rs 8,452 crore, showing a marginal increase of 0.3 per cent. An erratic monsoon affected market sentiment and potentially led to a deferral of sales to October, given the later occurrence of Diwali this year, the company stated.

However, the company experienced significant growth in its automotive and refinish business, with its general industrial coating business achieving double-digit growth in the quarter ending in September.

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On a quarter-on-quarter (Q-o-Q) basis, the company’s net sales decreased by 7.7 per cent, while net profit declined by 22.2 per cent.

In the September quarter, profit before interest, depreciation, and tax stood at Rs 1,911 crore, marking a 42 per cent increase compared to the previous year but an 18.7 per cent decrease Q-o-Q.

Amit Syngle, managing director and chief executive officer of Asian Paints, commented on the performance, saying, “The domestic coating business, encompassing both decorative and industrial segments, registered a subdued 1.1 per cent revenue growth in the quarter. The domestic decorative paint business for the second quarter remained muted, with flat value sales and a 6 per cent increase in volume.”

He also noted that, despite soft demand in the home décor sector due to subdued consumer sentiment, the company continued to strengthen its position in the décor market through new collections, network expansion, and store expansions.

Regarding the company’s international business, Syngle said, “Our international business, despite robust growth in West Asia and improved profitability overall, was constrained by macroeconomic challenges, inflation, and foreign exchange unavailability in key geographies of South Asia and Egypt.”

Syngle attributed the company’s strong profit growth in the quarter to operational, formulation, and sourcing efficiencies, along with moderating raw material prices, which benefited its margin.

“Looking towards the second half of the year, we remain optimistic about improved demand conditions, well-supported by the longer festival season and the overall buoyant domestic economic growth,” he added.

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First Published: Oct 26 2023 | 6:27 PM IST

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