Asian Paints Q2: Net Profit Soars 53.31%, Rs 5.15/Share Interim Dividend Declared

Asian Paints today announced its consolidated net profit of Rs 1232.39 crore for Q2 of FY 2023-24, up 53.31% from Rs 803.83 crore in the year-ago period. However, the company's profit came down 21.74%, sequentially. Asian Paints also approved an interim dividend of Rs 5.15 per share of the face value of Re 1 each for the financial year ending March 31, 2024. The record date for interim dividend has already been fixed as November 3, 2023.

The large cap paint company announced a surge of 0.03% YoY in its consolidated revenue to Rs 8,478 crore in September quarter as against Rs 8,457 crore declared in year ago period. Meanwhile, the company reported its revenue 7.66% down from the June quarter.

Asian Paints' EBITDA (earnings before interest, tax, depreciation, and amortization) arrived at Rs 1717 crore as compared to Rs 1219.3 crore in the year ago quarter. Its EBITDA margin declared at 20.2% as compared to Rs 14.4% in the year-ago period.

Amit Syngle, Managing Director & CEO of Asian Paints Ltd said, "The Domestic Decorative Paint business for Q2 was muted, registering a flat value sale with a 6 percent volume growth. The erratic monsoon impacted market sentiment potentially leading to deferment of sales to October given the late Diwali this year Looking towards the second half of the year, we remain optimistic about improved demand conditions well supported by the longer festive season and the overall buoyant domestic economic growth."

PL Recommends Accumulate Call: According to Amnish Aggarwal-Head of Research - Prabhudas Lilladher, "Asian Paints (APNT) has reported numbers below our estimates. Volumes witnessed mid-single digit growth YoY on a base of 10% volume growth. Margin expanded by ~570bps aided by strong operational efforts and supported by easing inflation in raw material prices. Although festival season has been shifted to 3Q, home décor market has been slightly sluggish. Realisations has declined QoQ (-6% versus -3%) showing some deterioration in sales mix. We expect far better performance in 3Q given festival boost and low base (nil volume growth). We expect back ended returns given rich valuations pending Grasim's entry in 4Q, Retain Accumulate."

Asian Paints Stock Performance: Earlier, Asian Paints Ltd shares witnessed a decline of 1.80% till 1:41 pm on Thursday just a few hours before the company scheduled to declare the quarterly result. Current market price of Asian Paints share on BSE is Rs 2986.65 after the intraday fall of 2.43% at 2:15 pm. The stock's 52-week high price is Rs 3566.90 per share and 52-week low price is Rs 2686.15 per share, respectively.

The company has a market capitalisation of Rs 2,86,838.51 crore. Asian Paints shares fell 9% in last 1-month, declined 11% in last 3-months, offered rally of 2.79% in last 6-months, fell 3% in last 1-year, and gave return of 43% in last 3-years. In last 5-year, Asian Paints shares rallied 151%.

Asian Paints Declares Rs 5.15/ Share Interim Dividend Today: The company in its today's BSE filing stated, "Payment of interim dividend of Rs. 5.15 (Rupees five and paise fifteen only) per equity share of the face value of Re. 1 (Rupee One) each for the financial year ending 31 st March 2024. The record date for the purpose of determining the entitlement of the shareholders for interim dividend has been fixed as Friday, 3rd November 2023, and the dividend will be paid to the shareholders on or after Monday, 13th November 2023."

Asian Paints Sets Record Date For Interim Dividend: The company on September 15, 2023 fixed November 3, 2023 as the record date for interim dividend.

About: Asian Paints manufactures a wide range of paints for decorative and industrial use and also offers Wall Coverings, water proofing, adhesives and services under its portfolio. The company is also present in the Home Improvement and Decor segment and offers bath and kitchen products. The company also introduced lightings, furnishings and furniture in its portfolio, according to its official website.