Asian Paints Ltd. (NSE: ASIANPAINT) is a leading paint company based in India. The company was founded in 1942 and is known for its wide range of paint products and services for both residential and commercial use. They have a strong presence in India, Nepal, Bhutan, Sri Lanka, and Middle East. They offer a variety of paint types, such as emulsions, enamels, and wood finishes, as well as a number of home decor products and services.
Asian Paints Limited, a leading paint company in India, has reported its Q3FY23 and 9MFY23 financial results. The company saw a 1.7% increase in its consolidated sales, reaching Rs 8,607.50 crore from Rs 8,462.15 crore in Q3FY23. PBDIT for the group (before share of profit in associates) increased by 4.5% to Rs 1,611.43 crore from Rs 1,542.31 crore, and net profit after minority interest increased by 5.6% to Rs 1,072.67 crore from Rs 1,015.69 crore.
For the 9MFY23 period, consolidated sales increased by 21.8% to Rs 25,616.98 crore from Rs 21,033.53 crore. PBDIT for the group (before share of profit in associates) increased by 30.8% to Rs 4,395.08 crore from Rs 3,360.32 crore, and net profit after minority interest increased by 31.7% to Rs 2,872.31 crore from Rs 2,180.15 crore.
In terms of performance by business segment, the domestic decorative business saw a flat volume and value sales delivery for the quarter due to a high price increase base in the previous year, as well as an extended monsoon in October affecting retailing during the peak festival season. However, demand picked up in November and December leading to double-digit growth for the decorative business in December. Overall, the decorative business saw healthy double-digit volume and value growths with strong CAGRs on a 9-month basis.
The Industrial business performed well, driven by strong growth in the Auto OE and General Industrial segments. The international business saw mixed results, with good growth in the Middle East and Africa while the South Asia market, especially Sri Lanka and Bangladesh, were negatively impacted by adverse forex and macro-economic conditions. The home décor market also saw a slowdown in the Bath and Kitchen business this quarter.
Overall, the company’s management has emphasized the company’s focus on driving operational efficiencies across businesses and continued work on multiple strategic initiatives to further strengthen the business model and deliver sustained value to stakeholders.