Asian Paints Q3: Shares End In Red Despite 34% Jump In Net Profit

Asian Paints today announced its financial results as shares of the large cap company traded in red. The company announced a jump of 34.4% in its consolidated net profit to Rs 1475.16 crore for Q3 of FY 2023-24 from Rs 1097.06 crore reported an year ago. Sequentially, profit surged 19.69%.

Meanwhile, Asian Paints Ltd shares declined 1.67% to end at 3242.30 apiece. The large cap company operating in Paints industry announced a surge of 5.4% YoY in its consolidated revenue to Rs 9,104 crore for the December quarter as compared to Rs 8,636.7 crore in the corresponding quarter of last year. Revenue surged 7.37% from September quarter. Asian Paints announced 12% volume growth and 5.5% value sales in Decorative Business for India.

Asian Paints Stock Performance & Return: The stock's 52-week high price is Rs 3,566.90 apiece and 52-week low price is Rs 2686.15 apiece, respectively. The company has a market capitalisation of Rs 3,11,000.70 crore. Asian Paints shares declined 4.49% year-to-date. Asian Paints shares gained 4.18% in last 3-months. In last 6-months, Asian Paints stock declined 6.31% and soared 10.23% in last 1-year. Asian Paints shares rallied 25% in last 3-years and soared 133% in last 5-years.

Asian Paints International Business: According to the BSE filing dated Jan 17, "Sales was flat in Q3 FY'24 at Rs 779.1 crores from Rs 778.8 crores on the back of macro-economic headwinds, inflation in key markets of South Asia and Egypt. In constant currency terms, sales increased by 5.2%. PBT before exceptional items in Q3 FY'24 was Rs 58.3 crores as against Rs 37.0 crores in the corresponding period of previous year. Sales decreased by 1.8% in 9M FY'24 to Rs 2,249.1 crores from Rs 2,290.0 crores. PBT before exceptional item was Rs 125.2 crores in 9M FY'24 from Rs 118.3 crores in the corresponding period of previous year."

Meanwhile, earnings before interest, tax, depreciation, and amortization (EBITDA) reported at Rs 2,056 crore as compared to Rs 1,611.4 crore in the corresponding quarter of last year. The EBITDA margin came at 22.6% from 18.7% in the year-ago period.

According to Amit Syngle, Managing Director & CEO of Asian Paints Limited, "The quarter delivered a Decorative & Industrial coatings combined value growth of 6.1% with a strong double-digit Industrial coatings value growth. The Decorative Business grew well in Luxury and Economy segments to register a robust 12 % volume growth and a value growth of 5.5%. Growth was supported by the extended festive season, though we saw some moderation in demand in the latter part of the quarter. 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."

Asian Paints Dividend In Q2: 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."

The company on September 15, 2023 fixed November 3, 2023 as the record date for interim dividend.

About: Asian Paints is India's leading paint and decor company and ranked among the top 8 coatings companies in the world with a consolidated turnover of ₹ 34,489 crores (₹ 345 billion) with a market capital of approx. ₹ 3,100 billion. Asian Paints along with its subsidiaries have operations in 15 countries across the world with 27 paint manufacturing facilities, servicing consumers in over 60+ countries through Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints. Asian Paints also offers a wide range of Home Décor products and is an emerging strong player in the Home Improvement and Décor space in India.