{"id":157784,"date":"2024-01-18T06:02:27","date_gmt":"2024-01-18T11:02:27","guid":{"rendered":"https:\/\/44.250.171.167\/?p=157784"},"modified":"2024-01-18T06:02:29","modified_gmt":"2024-01-18T11:02:29","slug":"asian-paints-limited-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/asian-paints-limited-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"Asian Paints Limited Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Asian Paints Limited (ASIANPAINT) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Growth and Performance<\/strong>\n<ul>\n<li>Strong volume growth of 12% in decorative business and 5.5% in overall coatings in Q3.<\/li>\n<li>9% volume growth and 4.6% value growth in the first 9 months of FY2024.<\/li>\n<li>Double digit compounded average growth rate of over 15% reflecting consistent and healthy growth.<\/li>\n<li>Growth seen across both urban and rural markets in T1, T2 and T3, T4 cities.<\/li>\n<li>Economy range products growth has surged but luxury products also growing in double digits.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Value growth of 4.1% in 9 months along with 23.5% PBDIT margin.<\/li>\n<li>Over 500 basis points increase in margins versus last year.<\/li>\n<li>Consolidated financials showed 5.4% value growth and 22.7% PBDIT margin.<\/li>\n<li>One of the highest margins achieved in recent years.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Distribution Network Expansion<\/strong>\n<ul>\n<li>Added 2,000 new touchpoints in Q3 taking overall retail footprint to 1.62 lakh retailers.<\/li>\n<li>Consistent increase in distribution footprint over years.<\/li>\n<li>Waterproofing brand seeing growth in both retail and B2B segments.<\/li>\n<li>Projects and institutional business growing significantly faster than retail growth.<\/li>\n<li>Committed INR 2000 crores in capital expenditure on expansion and backward integration.<\/li>\n<li>To increase capacity by 2 lakh kl by end of year.<\/li>\n<li>Painting services emerging as a star service and innovation area.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Product Innovation<\/strong>\n<ul>\n<li>280 new products in last 7 years contributing strongly to revenue.<\/li>\n<li>Products like Flash target the unorganized segment and bring into organized fold.<\/li>\n<li>30-40% of portfolio has differentiated properties vs competition.<\/li>\n<li>Anti-crack, textures, waterproofing, wallpapers etc. propositions differentiated.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Home Decor Business Expansion<\/strong>\n<ul>\n<li>Currently 4% of decorative turnover, targeting 8-10% share.<\/li>\n<li>Launched turnkey Beautiful Homes service in 11 cities.<\/li>\n<li>Focus on new launches like wardrobes, bath products, lighting etc.<\/li>\n<li>Lighting and UPVC windows\/doors doubling and in expansion mode.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Industrial Businesses Growth<\/strong>\n<ul>\n<li>Auto OE business grew 12% by value this quarter, 10% in 9 months.<\/li>\n<li>Raw material impact on profits offset by price increases.<\/li>\n<li>PBT up 40% in quarter, 50%+ in 9 months; margins at 22%.<\/li>\n<li>General industrial business also grew 10% this quarter, 14% in 9 months.<\/li>\n<li>Overall strong double digit growth in both industrial businesses.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Outlook<\/strong>\n<ul>\n<li>Elections may cause some deferment of paint purchases.<\/li>\n<li>Uptick in T3, T4 cities indicates potential for good growth.<\/li>\n<li>Overall volume momentum expected to sustain.<\/li>\n<li>South Asia and Nepal remain areas of concern.<\/li>\n<li>Bangladesh should see higher growth after elections.<\/li>\n<li>Sri Lanka has recovered somewhat but Nepal still a worry.<\/li>\n<li>Egypt facing issues like forex availability and depreciation, but constant currency growth expected from most markets.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Raw Material Prices and Margins<\/strong>\n<ul>\n<li>Softer raw material price trend expected to continue.<\/li>\n<li>If deflation continues, will decide on retaining or reducing prices.<\/li>\n<li>Select price cuts can spur demand in smaller towns.<\/li>\n<\/ul>\n<\/li>\n<li><strong>B2B Projects Business Growth<\/strong>\n<ul>\n<li>Strong growth in projects\/B2B business over last 6-7 years.<\/li>\n<li>Represented in 80% of marquee projects like airports, metros etc.<\/li>\n<li>Overall marquee project margins lower than retail business.<\/li>\n<li>Working on increasing margins as projects business grows.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Value Growth Outlook<\/strong>\n<ul>\n<li>Premiumization efforts will continue to upgrade consumers.<\/li>\n<li>Waterproofing, textures may improve upgrades partially.<\/li>\n<li>VAM, VAE coming up in 1.5-2 years for backward integration.<\/li>\n<li>Benefits to start reflecting with lag after projects commissioned.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Home Decor Outlook<\/strong>\n<ul>\n<li>Currently at 4% of total decorative business.<\/li>\n<li>Target is to reach 8-10% contribution by FY2026.<\/li>\n<li>ROI model of 2.5-3 years for store investments by retailers.<\/li>\n<li>35-40 stores have achieved ROI showing profitable model.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Asian Paints Limited (ASIANPAINT) Q3 FY24 Earnings Concall Growth and Performance Strong volume growth of 12% in decorative business and 5.5% in overall coatings in Q3. 9% volume growth and 4.6% value growth in the first 9 months of FY2024. Double digit compounded average growth rate of over 15% reflecting consistent and [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[10169,9478,10226],"class_list":["post-157784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-earnings","tag-industirals","tag-paints"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":177905,"url":"https:\/\/alphastreet.com\/india\/asian-paints-q3-2026-volume-resilience-meets-exceptional-headwinds\/","url_meta":{"origin":157784,"position":0},"title":"Asian Paints Q3 2026: Volume Resilience Meets Exceptional Headwinds","author":"Staff Correspondent","date":"January 27, 2026","format":false,"excerpt":"Asian Paints Limited (NSE) ASIANPAINT today announced their financial results for the quarter ended December 31, 2025. 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