Asian Paints reports robust growth in Q3 FY’24 with consolidated net sales up by 5.4%
Asian Paints Limited, a leader in the paint industry, reported impressive financial results for the quarter ending December 31, 2023. The company’s Q3 FY’24 consolidated net sales saw an increase of 5.4%, reaching ₹ 9,075 crores, compared to the previous year. This growth is indicative of Asian Paints’ resilience and strategic prowess in navigating the complex market dynamics.
Strong Performance in Decorative and Industrial Sectors
The company’s decorative business in India showed a remarkable 12% volume growth and 5.5% value sales increase, continuing its trend of double-digit volume growth on a 4-year compound annual growth rate (CAGR) basis. This success is attributed to the extended festive season, although there was a noted moderation in demand towards the quarter’s end. The industrial business also saw double-digit revenue growth, demonstrating Asian Paints’ diverse market strength.
International Business and Home Décor Segments
Asian Paints’ international business reported increased profitability, particularly in the Middle East and Africa. However, it faced challenges due to macroeconomic headwinds and inflation in key markets like South Asia and Egypt. In the home décor segment, the company made significant strides, especially with its Beautiful Homes stores and network integration.
Asian Paints Achieves Strong Financial Performance in Q3 FY’24 Amidst Economic Challenges
Financial Highlights and Growth Drivers
The Q3 FY’24 consolidated PBDIT margin increased by 400 basis points to 22.7%, while the standalone PBDIT margin rose by 410 basis points to 24.1%. The consolidated PAT (Profit After Tax) also grew by 34.5%. These impressive figures are a result of a soft raw material environment and efficient sourcing and formulation strategies.
Amit Syngle, Managing Director & CEO of Asian Paints Limited, commented on the results, stating, “The quarter delivered a combined value growth of 6.1% in Decorative & Industrial coatings with a strong double-digit Industrial coatings value growth. Our International Business saw growth in the Middle East and Africa and registered increased profitability overall… We saw a better quarter in the Home Décor space, with new categories making headway… Our margins gained significantly from growth in luxury products and softening raw material prices coupled with operational, formulation, and sourcing efficiencies in Q3.”
Future Outlook and Expansion Plans
Looking ahead, Asian Paints remains committed to driving strong sales growth and continuing to invest in initiatives and solutions for customers, building on its leadership position. The company has also completed brownfield expansions at Khandala and Kasna, further enhancing its production capacity.
The financial performance of Asian Paints Limited in Q3 FY’24 reflects its strategic focus and adaptability in a challenging economic landscape, positioning it for continued success and innovation in the industry.