Asian Paints on Thursday reported a 1.8% year-on-year (y-o-y) increase in net profit to Rs 1,256 crore in the quarter ended March 31 (Q4FY24) amid weak demand conditions and downtrading seen in the premium segment. The net profit fell short of street estimates of Rs 1,333 crore.
Revenue from operations also missed street estimates at Rs 8,731 crore compared to a forecast of Rs 9,127 crore for the period by a poll of analysts by Bloomberg. Compared to the year-ago period, revenue was down 0.6%, its results showed.While volume growth in its decorative paints business stood at 10%, price cuts across product categories dampened revenue growth.
Earnings Before Interest, Tax, Depreciation, and Amortisation (Ebitda) for the quarter stood at Rs 1,692 crore, missing the consensus estimate of Rs 1,944 crore. On a y-o-y basis, Asian Paints reported a 9.3% drop in its Ebitda. Ebitda margin narrowed by 170 basis points during the quarter to 19.4%, well below the consensus estimate of 21.5% estimate.The paint major’s coatings business in India registered a revenue decline of 0.7% in Q4, while its industrial business experienced a strong quarter.
Its home decor business continued to benefit from synergies, and its international business saw improved profitability in the quarter as well as on y-o-y basis. However, revenue growth was constrained by macroeconomic headwinds in key geographies like Nepal and Egypt, the company said.
In FY24, its revenue crossed Rs 35,000 crore.
“Our decorative and industrial coatings combined delivered a volume growth of 10% and a value growth of 3.9% for the year, with our industrial segment registering double-digit value growth,” said Amit Syngle, managing director and chief executive officer.
In his outlook, Syngle said the company was confident about a pick-up in the demand conditions with a favourable monsoon forecast.
“We will continue to innovate with speed and invest in our brand