Asian Paints Q3 Results 2024: Asian Paints on Wednesday reported profit for the third quarter of FY24 at Rs 1,447.72 crore, up 35 per cent in comparison to Rs 1,072.67 crore during the corresponding quarter of last year, beating estimates. It posted revenue from operations at Rs 9,074.94 crore, up 5.4 per cent as against Rs 8,607.50 crore during the December quarter of FY23. According to a CNBC TV18 poll, Asian Paints was expected to post Q3 profit at Rs 1,410 crore and revenue at Rs 9,285 crore. Asian Paints reported improvement in gross margins by about 510 basis points in Q3FY24 as compared to Q3FY23.
Asian Paints’ Q3 performance across business verticals
In terms of international business, Asian Paints posted flat sales in Q3FY24 at Rs 779.1 crore from Rs 778.8 crore on the back of macro-economic headwinds, inflation in key markets of South Asia and Egypt.
Under the home decor business, Asian Paints’ bath fittings business recorded sales at Rs 85.4 crore during Q3, down 5 per cent from Rs 89.8 crore on the back of weak industry demand. Kitchen business sales was flat in Q3 at Rs 100.1 crore from Rs 100.7 crore after 4 quarters of de-growth. PBDIT was Rs 4.2 crore in Q3FY24 as against a loss of Rs 3.3 crore in the corresponding period of previous year. Sales at White Teak in Q3FY24 increased by 18.3 per cent to Rs 33.7 crore and sales at Weatherseal more than doubled to Rs 13.7 crore.
In the Industrial business segment, APPPG sales increased in Q3 by 10.1 per cent to Rs 288.0 crore from Rs 261.6 crore. PBT in Q3 was Rs 33.2 crore as against Rs 25.6 crore in the corresponding period of previous year. PPGAP sales, meanwhile, increased in Q3 by 12.3 pr cent to Rs 576.2 crore from Rs 513.3 crore. PBT in Q3FY24 was Rs 128.0 crore as against Rs 91.4 crore in the corresponding period of previous year.
“The quarter delivered a Decorative & Industrial coatings combined value growth of 6.1 per cent with a strong double-digit Industrial coatings value growth. The Decorative Business grew well in Luxury and Economy segments to register a robust 12 per cent volume growth and a value growth of 5.5 per cent. Growth was supported by the extended festive season, though we saw some moderation in demand in the latter part of the quarter,” said Amit Syngle, Managing Director & CEO of Asian Paints Limited.
“Both our Auto OE and General Industrial coating businesses achieved sturdy revenue growths and good profit margins. Our International Business saw growth in the Middle East and Africa and registered increased profitability overall. It, however, continued to remain constrained by macroeconomic headwinds, inflationary pressures in key geographies of South Asia and Egypt. We saw a better quarter in the Home Décor space, with new categories making headway, as we made good progress on integrating our offerings within our Beautiful Homes stores and network. Our margins gained significantly from growth in luxury products and softening raw material prices coupled with operational, formulation and sourcing efficiencies in Q3. Moving forward, we will maintain focus on driving strong sales growth and continue to invest in multiple initiatives and solutions for our customers, building on our leadership position,” added Amit Syngle.
The company also stated that Brownfield expansions at both Khandala and Kasna have been completed with installed production capacity increasing from 300,000 KL p.a. to 400,000 KL p.a. and 80,000 KL p.a. to 100,000 KL p.a. respectively.