Asian Paints Q2 Results FY2024, Net profit at Rs.1205.4 crores

On 26th October 2023, Asian Paints announced its quarterly results.

Key Highlights:

- Consolidated Net Sales increased by 0.3% to Rs.8,451.9 crores for Q2FY24.
-  EBITDA increased by 39.8% to Rs.1,716.2 crores
- EBITDA improved to 20.3% from 14.6% in the corresponding period of the previous year.
- Net Profit increased by 54.0% to Rs.1,205.4 crores

Business Highlights:

 
- International business: Due to macroeconomic and currency difficulties in Egypt and South Asia, two of the company's most important markets, sales fell 3.9% in Q2 FY24 to Rs. 775.0 crores from Rs. 806.0 crores.
- The business of bath fittings saw a 20.0% decline in sales in Q2 FY24, from Rs.101.8 crores to Rs.81.4 crores, due to unfavorable customer sentiment.
- Kitchen business sales decreased in Q2 FY24 by 17.9% to Rs.96.8 crores from Rs.117.8 crores on the back of weak consumer sentiment.
- White Teak's sales climbed to Rs.26.1 crores in Q2 FY24, an 8.5% rise. With Weatherseal, sales almost doubled to Rs.12.6 crores. 
- APPPG Sales rose from Rs. 225.0 crores to Rs.250.6 crores in Q2FY24, a 11.4% increase.
- PPGAP Sales rose from Rs. 468.9 crores to Rs.495.3 crores in Q2 FY24, a 5.6% increase.

Commenting on the results Amit Syngle, Managing Director & CEO of Asian Paints Limited said: “The domestic coatings business, decorative and industrial combined, registered a subdued 1.1% revenue growth in the quarter. The Domestic Decorative Paint business for Q2 was muted, registering a flat value sale with a 6% volume growth. The erratic monsoon impacted market sentiment potentially leading to deferment of sales to October given the late Diwali this year. Growth in our Automotive & Refinish business was decent, while our General Industrial Coatings business sustained its double-digit growth trajectory. Our International Business, though supported by robust growth in the Middle East and an overall improved profitability, remained constrained by macro-economic challenges, inflation and forex unavailability in key geographies of South Asia and Egypt. While demand in the Home Décor space was soft on account of muted consumer sentiments, we continued to strengthen our décor foray with new collections, network and store expansions. Operational, formulation and sourcing efficiencies coupled with moderating raw material prices benefitted our margins in Q2 and resulted in strong profit growth for the quarter. Looking towards the second half of the year, we remain optimistic about improved demand conditions well supported by the longer festive season and the overall buoyant domestic economic growth.”