In the first quarter of 2023, which concluded in June, Asian Paints recorded a 52% increase in annual growth in consolidated net profit at 1,574.84 crore.
In the same quarter the previous year, the company’s net profit was $1,036.03 crore.
The company’s consolidated revenue from operations during the first quarter of FY24 increased 6.6% from the prior year to $9,182.31 crore.
Operationally speaking, consolidated EBITDA (profits before interest, taxes, depreciation, and amortization) climbed 28.1% to 2,121.2 crore during the quarter from 1.566 crore in the same period last year.
“Our international business was supported by good deliveries from the Middle East region however, continued macro‐economic challenges and adverse forex conditions in Asian markets, resulted in an overall subdued growth for the international portfolio,” said Amit Syngle, Managing Director & CEO of Asian Paints Ltd.
EBITDA margin increased as well, rising from 18.1% to 23.1%, YoY, by 500 basis points (bps).
Due to economic unpredictability, the FX crisis, and liquidity problems in important Asian and African countries, Asian Paints’ overseas business sales fell by 1.4% to 695.1 crore from 705.2 crore.
Sales climbed by 3.8% in constant currency terms, the business reported.
Coming off a strong foundation from the previous year, the company’s Domestic Decorative business saw double-digit volume growth and a reasonably solid value rise.
The Protective & Powder Coatings category saw growth, which helped both the Auto OE and the General Industrial coating companies achieve strong double-digit sales growth, he continued.
“Overall, we have recorded significant improvement in margins, both sequentially as well as on a year‐on‐year basis, aided by strong efforts on driving operational, formulation, and sourcing efficiencies and supported by easing inflation in raw material prices,” Syngle said
By 28.2% to 84.7 crores from 118.0 crores, while Kitchen business sales fell by 12.0% to 96.0 crores from 109.0 crores, year over year.
During the quarter, the company’s industrial division saw growth. Sales of APPPG jumped by 21.6% YoY to 294.2 crores, while sales of PPGAP increased by 13.3% YoY to 471.9 crore.
