Asian Paints Q1 Results: Profit Down 6%, But Meets Estimates
India's largest paint-maker saw a 6% fall in consolidated net profit year-on-year to Rs 1,099.77 crore in the quarter-ended March, according to an exchange filing.
Asian Paints Ltd.'s first-quarter profit was down and margins remained at 18.2%.
India's largest paint-maker saw a 6% fall in consolidated net profit year-on-year to Rs 1,099.77 crore in the quarter-ended March, according to an exchange filing.
Asian Paints Q4 Highlights (Consolidated, YoY)
Revenue down 0.4% to Rs 8,998.55 crore versus Rs 8,969.73 crore (Bloomberg estimate: Rs 8,989 crore)
Ebitda down 4.1% to Rs 1,624.97 crore versus Rs 1,693.77 crore (Bloomberg estimate: Rs 1,659 crore)
Margin at 18.2% versus 18.9% (Bloomberg estimate: 18.46%)
Net Profit down 6% to Rs 1,099.77 crore versus Rs 1,169.98 crore (Bloomberg estimate: Rs 1,101 crore)
International Business registered a value growth of 8.4% and decorative volume growth at 3.9%.
International Business value growth on the back of growth in Asian Markets, UAE and Egypt.
Asian Paints CEO Amit Syngle expressed confidence in the long-term growth prospects of the home décor and paints industry, even as the company navigates through near-term demand headwinds. Speaking after the company’s Q1 performance, the CEO said, “We continue to drive innovation and strengthen our brand saliency as we navigate demand challenges.”
The domestic decorative paints segment showed relative improvement compared to previous quarters, with urban centres contributing to a marginal uptick in demand during the first quarter. The broader paint industry also experienced a slight recovery in Q1, indicating early signs of stabilization.
Operationally, Asian Paints reported slightly better margins, which the CEO attributed to increased investments in sales and marketing. The industrial coatings division posted growth, supported by strong performance in the automotive and protective coatings segments.
