On May 9, Asian Paints reported a consolidated net profit of Rs 1,275.3 crore for the March quarter, marking a 1.3 percent increase from Rs 1,258.41 crore in the previous year. The company’s total revenue stood at Rs 8,730.76 crore, showing a slight decline of 0.64 percent from Rs 8,787.34 crore last year, as per its regulatory filing.
Both revenue and profit fell short of estimates. The earnings before interest, tax, depreciation, and amortization (EBIDTA) for the quarter amounted to Rs 1,692 crore, down by 9.3 percent, with EBITDA margins decreasing by 170 bps year-on-year to 21.1 percent.
The company’s board recommended a final dividend of Rs 28.15 per share, supplementing the interim dividend of Rs 5.15 per share declared in October 2023. The total dividend for FY’24 stands at Rs 33.30 per share, with a payout ratio of 60 percent.
Amit Syngle, the Managing Director and CEO, expressed confidence in the company’s performance, citing achievements such as crossing the Rs 35,000 crore consolidated revenue milestone in FY2024. He noted growth in both the Decorative & Industrial coatings segments, supported by a favorable monsoon forecast. Syngle highlighted progress in launching new collections and expanding the company’s store network, alongside integrating Home Décor offerings.
Despite challenges such as weak demand and downtrading in the Decorative Business, the company’s automotive coatings business crossed the Rs 2,000 crore revenue mark. The Industrial business also saw positive growth, with the APPPG and PPGAP segments showing significant increases in sales and profits.
In the international business segment, while there was a slight decline in sales for FY’24 due to economic uncertainty and liquidity issues in key markets, there was a 3.9 percent growth in constant currency terms.
Following the earnings announcement, Asian Paints’ shares were trading 4.22 percent lower at Rs 2724.20 on the BSE at 2:37 pm.
