Thursday, Asian Paints recorded a consolidated net profit of 1,097 crore for the third quarter ending December 2022 (Q3 FY23), an increase of over 6% compared to 1,031 crore for the same period last year.
The profit fell short of projections as tepid demand nullified the advantages of a reduction in raw material costs. According to statistics from Refinitiv IBES, analysts had projected an average profit of 1,160 crore. Meanwhile, the company’s revenue from operations increased by around 1% to 8,636 crore compared to 8,536 crore the previous year (YoY).
The business reported that the domestic Decorative Business posted stable volume and value sales for the quarter, despite a significant price rise in the prior year.
“The prolonged rain in October also hampered retailing during the peak festival season; nevertheless, demand increased in November and December, resulting in a double-digit increase for the Decorative Business in December. Overall, on a nine-month basis, the Decorative Business continues to develop at double-digit volume and value growth rates with excellent CAGRs,” the report states.
In the third quarter of fiscal year 23 (Q3), international business revenues climbed by 2%, from 762 crore to 778.8 crore. In terms of constant currency, sales climbed by 13.4%. Bath Fittings business sales declined by 11% to 89.8 crore, while Kitchen business sales decreased by 7% to 100.6 crore, both within the home design segment.
The operating margins improved sequentially and on a year-over-year basis as a result of deflation in certain of the raw material prices and continuous efforts to develop operational savings across businesses. Amit Syngle, Managing Director & CEO of Asian Paints Limited, stated, “We continue to work diligently on several strategic initiatives to further develop our business model and create sustainable value to all our stakeholders.”
In afternoon trade, shares of paint manufacturer Asian Paints were trading almost 1% lower at 2,902 per share on the BSE. The share price has decreased by more than 11% in the past year.
