The longer Christmas season aided Asian Paints’ development, however demand slowed at the end of the quarter, according to Amit Syngle, Managing Director & CEO of Asian Paints. He said that the company’s Auto OE and General Industrial coatings businesses had strong sales growth and profit margins.
“The quarter saw a combined value gain of 6.1 percent for decorative and industrial coatings, as well as high double-digit growth in industrial coatings. “The Decorative Business grew well in the Luxury and Economy segments, registering a robust 12 percent volume growth and a value growth of 5.5 percent,” Syngle said in Asian Paints’ quarterly press statement.
“Our International Business expanded throughout the Middle East and Africa, resulting in higher profitability overall. It, however, remained hampered by macroeconomic headwinds and inflationary pressures in important areas such as South Asia and Egypt,” he said while discussing foreign business.
In the Home Décor market, Asian Paints had a better quarter, with new categories finding momentum. Syngle said that the firm has made tremendous progress in integrating its services throughout Beautiful Homes’ shops and network. In Q3, the company’s margins improved significantly owing to increased luxury product sales and lower raw material costs, as well as operational, formulation, and sourcing savings, he noted.
“Moving forward, we will maintain focus on driving strong sales growth and continue to invest in multiple initiatives and solutions for our customers, building on our leadership position,” he added.
On January 17, the firm announced a consolidated net profit of Rs 1,475.16 crore for the third quarter of fiscal year 2023-24, a 34.4 percent increase from Rs 1,097.06 crore the previous year. The profit increased sequentially by 19.69 percent.
The paint maker recorded a 5.4 percent year-on-year (YoY) increase in consolidated sales to Rs 9,104 crore in the December quarter, compared to Rs 8,636.7 crore the previous year.
Asian Paints’ shares closed 1.43 percent down at Rs 3,249.70 on the NSE on January 17.
Asian Paints, an Indian multinational paint manufacturer, has been in operation for over 75 years. It is one of India’s biggest and prominent paint firms, with operations in 16 countries across the globe. The company’s success is mostly due to its creative business strategy and successful marketing methods.
Asian Paints’ business plan is built on its “One Asia” philosophy. The corporation aims to create a harmonic and integrated operation across all of its foreign activities. This technique allows Asian Paints to simplify processes, maximize resources, and enhance supply chain management.
