|
Consolidated
net sales of Asian Paints have increased 5.40% to Rs 9103.09 crore in Q3FY24
compared to Q3FY23. Operating profit
margin has jumped from 18.66% to 22.59%, leading to 27.59% rise in operating
profit to Rs 2,056.09 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
46.66% to 43.49%. Purchase of finished
goods cost fell from 12.61% to 11.53%.
Employee cost increased from 6.16% to 6.46%. Other expenses rose from 14.87% to
15.22%.
Other
income rose 60.10% to Rs 138.58 crore.
PBIDT rose 29.25% to Rs 2194.67 crore.
Provision for interest rose 31.48% to Rs 54.42 crore.
PBDT
rose 29.20% to Rs 2140.25 crore.
Provision for depreciation rose 2.94% to Rs 220.35 crore.
Profit
before tax grew 33.09% to Rs 1,919.90 crore.
Share of profit/loss was 34.31% higher at Rs 47.88 crore. Provision for tax was expense of Rs 492.62
crore, compared to Rs 381.14 crore.
Effective tax rate was 25.03% compared to 25.78%.
Minority
interest increased 12.51% to Rs 27.44 crore.
Net profit attributable to owners of the company increased 34.96% to Rs
1,447.72 crore.
Promoters’
stake was 52.63% as of 31 December 2023 ,compared to 52.63% as of 31 December
2022 . Promoters pledged stake was 6.58%
as of 31 December 2023 ,compared to 7.62% as of 31 December 2022.
“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. 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.” said Amit Syngle,
Managing Director & CEO of Asian Paints Limited.
Segment Highlights
International
business:
Sales was flat in Q3 FY’24 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. In
constant currency terms, sales increased by 5.2%. PBT before exceptional items
in Q3 FY’24 was Rs 58.3 crore as against Rs 37.0 crore in the corresponding
period of previous year.
Sales
decreased by 1.8% in 9M FY’24 to Rs 2,249.1 crore from Rs 2,290.0 crore. PBT
before exceptional item was Rs 125.2 crore in 9M FY’24 from Rs 118.3 crore in the
corresponding period of previous year.
Home Décor business: Bath Fittings sales
decreased in Q3 FY’24 by 5.0% to Rs 85.4 crore from Rs 89.8 crore on the back
of weak industry demand. PBDIT loss in Q3 FY’24 was Rs 5.5 crore against profit
of Rs 0.1 crore in the corresponding period of the previous year. Sales
decreased by 18.8% in 9M FY’24 to Rs 251.5 crore from Rs 309.6 crore. PBDIT
loss was Rs 8.4 crore in 9M FY’24 as against profit of Rs 5.5 crore in the
corresponding period of the previous year.
Kitchen
business sales were flat in Q3 FY’24 at Rs 100.1 crore from Rs 100.7 crore
after 4 quarters of de-growth. PBDIT was Rs 4.2 crore in Q3 FY’24 as against a
loss of Rs 3.3 crore in the corresponding period of previous year. Sales
decreased by 10.6 % in 9M FY’24 to Rs 292.8 crore from Rs 327.5 crore. The
business achieved PBDIT of Rs 5.7 crore as against loss of Rs 8.2 crore in the
corresponding period of previous year
White
Teak and Weatherseal sales at White Teak in Q3 FY’24 increased by 18.3% to Rs 33.7
crore. Sales at Weatherseal more than doubled to Rs 13.7 crore. Sales at White
Teak increased by 17.9% in 9M FY’24 to Rs 85.7 crore. Sales at Weatherseal more
than doubled in 9M FY’24 to Rs 36.1 crore. Both these recent acquisitions are
gaining from synergies with the Asian Paints network.
Industrial business: APPPG sales
increased in Q3 FY’24 by 10.1% to Rs 288.0 crore from Rs 261.6 crore. PBT in Q3
FY’24 was Rs 33.2 crore as against Rs 25.6 crore in the corresponding period of
previous year. APPPG Sales increased by 14.3% in 9M FY’24 to Rs 832.8 crore
from Rs 728.6 crore. PBT almost doubled to Rs 100.7 crore in 9M FY’24 as
against Rs 51.3 crore in the corresponding period of previous
year
PPGAP
sales increased in Q3 FY’24 by 12.3% to Rs 576.2 crore from Rs 513.3 crore. PBT
in Q3 FY’24 was Rs 128.0 crore as against Rs 91.4 crore in the corresponding
period of previous year. PPGAP Sales increased by 10.4% in 9M FY’24 to Rs
1,543.5 crore from Rs 1,398.6 crore. PBT was Rs 287.2 crore in 9M FY’24 as
against Rs 180.1 crore in the corresponding period of previous year.
Other developments
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.
For year-to-date
(YTD) results analysis
Net
sales (including other operating income) of Asian Paints has increased 4.13% to
Rs 26763.97 crore. Operating profit
margin has jumped from 17.10% to 22.02%, leading to 34.10% rise in operating
profit to Rs 5,893.61 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
50.96% to 44.92%. Purchase of finished
goods cost fell from 12.41% to 11.05%.
Employee cost increased from 5.75% to 6.50%. Other expenses rose from 14.11% to 15.13%.
Other
income rose 78.24% to Rs 500.85 crore.
PBIDT rose 36.75% to Rs 6394.46 crore.
Provision for interest rose 43.14% to Rs 151.07 crore.
PBDT
rose 36.60% to Rs 6243.39 crore.
Provision for depreciation fell 1.64% to Rs 627.39 crore.
Profit
before tax grew 42.80% to Rs 5,616.00 crore.
Share of profit/loss was 52.74% higher at Rs 107.68 crore. Provision for tax was expense of Rs 1441.29
crore, compared to Rs 1042.06 crore.
Effective tax rate was 25.18% compared to 26.19%.
Minority
interest increased 22.09% to Rs 78.88 crore.
Net profit attributable to owners of the company increased 46.35% to Rs
4,203.51 crore.
Promoters’
stake was 52.63% as of 31 December 2023 ,compared to 52.63% as of 31 December
2022 . Promoters pledged stake was 6.58%
as of 31 December 2023 ,compared to 7.62% as of 31 December 2022.
The
scrip is currently trading at Rs 3242
|
Asian Paints : Consolidated Results
|
|
Particulars
|
2312 (03)
|
2212 (03)
|
Var.(%)
|
2312 (09)
|
2212 (09)
|
Var.(%)
|
2303 (12)
|
2203 (12)
|
Var.(%)
|
|
Net Sales
|
9,103.09
|
8,636.74
|
5
|
26,763.97
|
25,701.25
|
4
|
34,488.59
|
29,101.28
|
19
|
|
OPM (%)
|
22.6
|
18.7
|
|
22.0
|
17.1
|
|
18.2
|
16.5
|
|
|
OP
|
2,056.09
|
1,611.43
|
28
|
5,893.61
|
4,395.08
|
34
|
6,259.84
|
4,803.61
|
30
|
|
Other Inc.
|
138.58
|
86.56
|
60
|
500.85
|
281
|
78
|
386.48
|
380.01
|
2
|
|
PBIDT
|
2,194.67
|
1,697.99
|
29
|
6,394.46
|
4,676.08
|
37
|
6,646.32
|
5,183.62
|
28
|
|
Interest
|
54.42
|
41.39
|
31
|
151.07
|
105.54
|
43
|
144.45
|
95.41
|
51
|
|
PBDT
|
2,140.25
|
1,656.60
|
29
|
6,243.39
|
4,570.54
|
37
|
6,501.87
|
5,088.21
|
28
|
|
Depreciation
|
220.35
|
214.05
|
3
|
627.39
|
637.85
|
-2
|
858.02
|
816.36
|
5
|
|
PBT
|
1,919.90
|
1,442.55
|
33
|
5616
|
3932.69
|
43
|
5643.85
|
4271.85
|
32
|
|
Share of Profit/(Loss) from Associates
|
47.88
|
35.65
|
34
|
107.68
|
70.5
|
53
|
93.85
|
31.57
|
197
|
|
PBT before EO
|
1967.78
|
1478.2
|
33
|
5723.68
|
4003.19
|
43
|
5737.7
|
4303.42
|
33
|
|
EO Income
|
0
|
0
|
-
|
0
|
-24.21
|
-
|
-48.87
|
-115.7
|
58
|
|
PBT after EO
|
1967.78
|
1478.2
|
33
|
5723.68
|
3978.98
|
44
|
5688.83
|
4187.72
|
36
|
|
Taxation
|
492.62
|
381.14
|
29
|
1441.29
|
1042.06
|
38
|
1493.5
|
1102.91
|
35
|
|
PAT
|
1475.16
|
1097.06
|
34
|
4282.39
|
2936.92
|
46
|
4195.33
|
3084.81
|
36
|
|
Minority Interest (MI)
|
27.44
|
24.39
|
13
|
78.88
|
64.61
|
22
|
88.88
|
54.24
|
64
|
|
Net profit
|
1447.72
|
1072.67
|
35
|
4203.51
|
2872.31
|
46
|
4106.45
|
3030.57
|
36
|
|
EPS (Rs)*
|
#
|
#
|
|
#
|
#
|
|
43.2
|
32.5
|
|
|
Notes
|
|
* EPS is on current equity of Rs 95.92 crore, Face value of Rs
1, Excluding extraordinary items.
|
|
# EPS is not annualised
|
|
bps : Basis points
|
|
EO : Extraordinary items
|
|
Figures in Rs crore
|
|
Source: Capitaline Corporate Database
|
|