Asian Paints Ltd.'s fourth-quarter profit fell, and margins remained under pressure due to inflationary pressure and higher ad spends.
India's largest paint-maker saw a 45% dip in consolidated net profit year-on-year to Rs 692.13 crore in the quarter-ended March, according to an exchange filing. The company also reported a one-time cost of Rs 183 crore.
The exceptional item of Rs 183.0 crore includes an impairment loss of Rs 77.8 crore on White Teak's goodwill and intangible assets, and Rs 21.5 crore on Causeway Paints' goodwill. Additionally, there was a loss of Rs 83.7 crore from the disposal of assets in Indonesia.
Asian Paints Q4 Highlights (Consolidated, YoY)
Revenue down 4.3% to Rs 8,358.91 crore versus Rs 8,730.76 crore.
Net profit down 45% to Rs 692.13 crore versus Rs 1,256.72 crore.
Ebitda down 15% to Rs 1,436.20 crore versus Rs 1,691.37 crore.
Margin at 17.2% versus 19.4%.
Decorative business in India saw a volume growth of 1.8% in fourth quarter, but faced a revenue decline of 5.2%. The muted demand conditions, consumer sentiment, downtrading, and increased competitive intensity significantly impacted the revenue.
Despite these challenges, the industrial business showed resilience, growing by 6.1% during the January-March period. This growth was driven by robust performance in the general industrial and automotive segments.
International Business
The international business registered a value decline of 1.5% in Q4, primarily due to challenging macro-economic conditions in Africa. However, key markets in the Middle East and Asia performed well. On constant currency basis, the international portfolio delivered a revenue growth of 6% for the quarter.
Sales decreased by 1.5% to Rs 799.7 crore from Rs 812.3 crore, impacted by currency devaluation in Ethiopia, Egypt, and macro-economic challenges in Bangladesh. In constant currency terms, sales increased by 6.0%.
Home Décor Business
The Home Décor categories experienced a muted performance in Q4, due to pressure on household disposable incomes.
Bath Fittings: Sales increased by 3.7% to Rs 91.9 crore from Rs 88.7 crore. The Ebitda loss was at Rs 2.7 crore, an improvement from a loss of Rs 10.0 crore in the corresponding period of the previous year.
Kitchen Business: Sales decreased by 15.5% to Rs 85.1 crore from Rs 100.7 crore. The business reported a PBDIT loss of Rs 13.0 crore, compared to a profit of Rs 2.7 crore in the corresponding period of the previous year.
White Teak and Weatherseal: Sales at White Teak decreased by 57.9% to Rs 20.1 crore, while sales at Weatherseal increased by 3.4% to Rs 16.2 crore during the fourth quarter.
Industrial Business
APPPG: Sales increased by 10.8% in Q4 to Rs 347.1 crore from Rs 313.2 crore. The PBT for Q4 was Rs 28.9 crore, down from Rs 33.5 crore in the corresponding period of the previous year.
PPGAP: Sales increased by 2.9% to Rs 484.9 crore from Rs 471.2 crore. The PBT was Rs 58.6 crore, down from Rs 68.9 crore in the corresponding period of the previous year.
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