Back Asian Paints Q1 results: Net profit jumps 52% to ₹1,575 crore

Asian Paints announced its consolidated net profit for the June quarter of FY24 on July 25. This is an increase of 52% from the Rs 1,036.03 crore recorded for the same quarter of the previous financial year.

Profit for the firm increased by 24 percent from the previous quarter's Rs 1,268.41 crore.

According to a regulatory report from the FMCG major, the company's total revenue is now Rs 9,182.31 crore, up 6.68 percent from Rs 8,606.94 crore in the same quarter last year. In comparison to the previous quarter's Rs 8,787.34 crore, the revenue rose by 4.49 percent.

Before sharing in the profits of associates, PBDIT (Profit before depreciation, interest, tax, other income, and extraordinary items) rose by 36.3 percent to Rs 2,121.3 crore from Rs 1,556.0 crore.

While revenue fell short of expectations, net profit substantially met expectations. Asian Paints' Q1 sales was estimated to be Rs 9341.5 crore, while its net profit was Rs 1337.2 crore, according to a poll of brokerages.

Due to economic unpredictability, the foreign exchange crisis, and liquidity problems in important Asian and African countries, sales for the overseas business fell by 1.4 percent, to Rs 695.1 crore from Rs 705.2 crore, the company stated in a press release.

The company's home decor business had a 28.2% decline in sales from Rs 118.0 crore to Rs 84.7 crore as a result of a high base from the prior year's pricing hikes. On account of a high base from the previous year owing to price hikes, sales for the kitchen division also fell by 12.0% to Rs 96.0 crore from Rs 109.0 crore.

While sales at Weatherseal more than doubled to Rs 9.8 crore, sales at White Teak grew by 28.4% to Rs 26.0 crore.

The Company further bought an additional 11 percent ownership in White Teak from its current shareholders on June 23, 2023, for a cash consideration of Rs 53.8 crore. Since this is part of the staggered buyout plans, White Teak has become a subsidiary.

Sales for the APPPG rose by 21.6 percent, from Rs 242.0 crore to Rs 294.2 crore. Sales for the PPGAP increased from Rs 416.4 crore to Rs 471.9 crore, a 13.3 percent rise.

Source: Media Reports