Asian Paints Q4 Profit Up 45%
MUMBAI : Asian Paints Ltd on Thursday reported a 45% rise in fiscal fourth-quarter net profit thanks to robust increase in volume as well as value in its decorative and non-automotive industrial paints business.
Profit in the three months ended March climbed to ₹1,234.14 crore from ₹850.4 crore a year earlier, beating Bloomberg consensus estimate of ₹1140.5 crore.
Consolidated revenue from operations rose by 11% to ₹8,787.34 crore in the March quarter from ₹7,892.67 crore in the year-ago quarter.
Meanwhile, profit in the financial year ended March surged 35.5% to ₹4,106.5 crore from ₹3,030.6 crore in FY2022 as margins improved on the back of a fall in prices of crude oil, which influences prices of petroleum products used as raw materials to make paints.
The company’s net sales grew by 18.5% to ₹34,488.6 crores in FY23 from ₹29,101.3 crores in FY22.
Crude oil price on the global benchmark Brent fell to about $74 per barrel on Thursday from $107.87 per barrel on 11 May, 2022.
“In this quarter, we have logged in the highest value ever, with the decorative and non-automotive industrial businesses registering double digit volume and value growths. We have been able to improve our margins in the quarter sequentially and over last year through our persistent work on formulation and sourcing efficiencies and also helped by the easing inflation in raw material prices," Amit Syngle, managing director and CEO of Asian Paints said.
The board of Asian Paints recommended a final dividend of ₹21.25 per equity share for FY23. “It has been an outstanding year for us with a 14% volume growth and 20% value growth in our standalone business and a net profit growth of 31%," Syngle said.
“Our growths in both the industrial coatings have been stellar, growing double digits in volume and value, delivering one of the highest profits in the last two decades. Overall, at a consolidated level, we crossed ₹34,000 crore revenue and along with our décor and services diversification, we are now the largest integrated player in Home Décor Business," he said.
In the international market, Asian Paints’ sales fell 2.7% in the March quarter to ₹794.4 crore amid economic uncertainty, forex crisis and liquidity issues in key markets of Asia and Africa, the company said.
In the bath fittings business, Asian Paints sales decreased by 9.7% in the March quarter of FY2023 to ₹96.4 crore from ₹106.8 crore in the last year due to subdued retail demand.
In the kitchen business, Asian Paints sales decreased by 21.1% in Q4 FY23 to ₹97.9 crores from ₹124.1 crores. The business continues to be impacted by weak retail demand.
Shares of Asian Paints ended 3.23% higher at ₹3139.75 apiece on the NSE. The company’s market capitalization stood at ₹3 trillion.
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