Asian Paints’ Q2FY24 Quarter Results
- 27 Oct 2023
- Asian Paints reported 8% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter ended September (Q2FY24). On a year-on-year (YoY) basis, it witnessed a growth of 1%.
- Its expenses for the quarter were down by 4% QoQ and 6% YoY.
- The net profit de-grew 22% QoQ and grew 53% YoY.
- The earnings per share (EPS) of Asian Paints stood at 12.6 during Q2FY24.
Asian Paints’ Financial Statements for Q2FY24:
(Rs crores)
Total income
Q2FY23
8,553
Q1FY24
9,379
Q2FY24
8,644
QoQ (%)
-8%
YoY (%)
1%
(Rs crores)
Total expenses
Q2FY23
7,481
Q1FY24
7,305
Q2FY24
7,022
QoQ (%)
-4%
YoY (%)
-6%
(Rs crores)
Profit before tax
Q2FY23
1,094
Q1FY24
2,105
Q2FY24
1,651
QoQ (%)
-22%
YoY (%)
51%
(Rs crores)
Tax
Q2FY23
290
Q1FY24
530
Q2FY24
419
QoQ (%)
-21%
YoY (%)
44%
(Rs crores)
Profit after tax
Q2FY23
804
Q1FY24
1,575
Q2FY24
1,232
QoQ (%)
-22%
YoY (%)
53%
(Rs crores)
Earnings per share
Q2FY23
8.2
Q1FY24
16.2
Q2FY24
12.6
QoQ (%)
YoY (%)
| (Rs crores) | Q2FY23 | Q1FY24 | Q2FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
| Total income | 8,553 | 9,379 | 8,644 | -8% | 1% |
| Total expenses | 7,481 | 7,305 | 7,022 | -4% | -6% |
| Profit before tax | 1,094 | 2,105 | 1,651 | -22% | 51% |
| Tax | 290 | 530 | 419 | -21% | 44% |
| Profit after tax | 804 | 1,575 | 1,232 | -22% | 53% |
| Earnings per share | 8.2 | 16.2 | 12.6 |
Key Result Highlights:
- Industrial coatings businesses delivered decent growth.
- Gross Margin (GM) improved sequentially due to 4% Raw Material deflation.
- Management is confident about delivering double-digit volume growth in Q3.
- International business’ performance was constrained by macro-challenges.
- Management attributed the weakness in Q2 to demand deferment.
- 6% volume growth and flat value sales in Decorative Business (India).
- Consistent double-digit volume growth trend on 4 year compounded annual growth rate (CAGR) basis.
- Sustained strong revenue growth trajectory in Industrial Business.
- Overall, 1.1% revenue growth for the Coatings Business in India.
- Soft demand in Home Décor; continued to strengthen our foray with new collections, network and store expansions.
- International Business supported by robust growth in Middle East; overall constrained by macro - economic challenges in key markets of South Asia and Egypt.
- Moderating raw material prices coupled with operational efficiencies resulted in improved operating margins:
Q2FY24 Consolidated profit before depreciation, interest and tax (PBDIT) margin increased by 570 basis points (bps) to 20.3% Q2 FY’24 Standalone PBDIT Margin increased by 650 bps to 21.7%.
Interim Dividend:
The Board of Directors of the company approved a payment of interim dividend of Rs. 5.15 per equity share of the face value of Rs. 1 each for the financial year ending 31st March, 2024. The record date for the purpose of payment of interim dividend is fixed as 3rd November.
Management Outlook:
Operational, formulation and sourcing efficiencies coupled with moderating raw material prices benefitted the company’s margins in Q2 and resulted in strong profit growth for the quarter. Looking towards the second half of the year, the company remains optimistic about improved demand conditions well supported by the longer festive season and the overall buoyant domestic economic growth..
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
