The paint major's consolidated net profit rose 5.61% to Rs 1,072.67 crore on 1.72% increase in revenue from operations to Rs 8,607.50 crore in Q3 FY23 over Q3 FY22.
Profit before depreciation, interest, tax and other income (PBDIT) for the Group (before share of profit in associates) increased by 4.5 % to Rs 1,611.43 crore in Q3 FY23 from Rs 1,542.31 crore reported in Q3 FY22. Consolidated PBDIT margin stood at 18.7% in Q3 FY23.
Profit before exceptional items and tax stood at Rs 1,478.20 crore in quarter ended 31 December 2022, up 6.1% as against Rs 1,393.72 crore posted in the same period a year ago.
International business sales increased by 2.1% in Q3 FY23 to Rs 778.82 crore from Rs 762.43 crores. In constant currency terms, sales jumped 13.4%. PBT was Rs 36.96 crore in Q3 FY23, steeply higher than Rs 11.29 crore recorded in the corresponding period of previous year.
Reported sales increase was lower than the increase in sales in constant currency on account of currency depreciation in key markets such as Sri Lanka, Egypt, Bangladesh, and Ethiopia, said the company.
Bath fittings business sales decreased by 10.9% in Q3 FY23 to Rs 89.84 crore from Rs 100.84 crore. PBDIT was Rs 0.07 crore in Q3 FY23 as against Rs 2.47 crores posted in Q3 FY22.
Kitchen business sales declined 7.1% in quarter ended 31 December 2022 to Rs 100.68 crore as compared to Rs 108.41 crore. PBDIT loss was Rs 3.26 crore in Q3 FY23 as against profit of Rs 1.82 crore registered in same period last year.
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Industrial business (Asian Paints PPG) sales jumped 23.9% in Q3 FY23 to Rs 261.63 crore from Rs 211.17 crore. PBT stood at Rs 25.60 crore in Q3 FY23 as against Rs 12.07 crore in the corresponding period of previous year.
On a standalone basis, Asian Paints' net profit rose 6.43% to Rs 1,085.88 on 0.92% increase in revenue to Rs 7,492.22 in Q3 FY23 over Q3 FY22. PBDIT increased by 1.8% year on year to Rs 1,494.76 crore during the quarter. Profit before tax rose 5.5% to Rs 1,442.98 crore in Q3 FY23 from Rs 1,367.42 crore recorded in Q3 FY22.
Amit Syngle, managing director & CEO of Asian Paints, The domestic Decorative business registered a flat volume and value sales delivery for the quarter, on a very high price increase base in the previous year. The extended monsoon in October also affected retailing in the peak festival season; but demand picked up in November and December leading to a double-digit growth for the Decorative Business in December. Overall, on a 9 month basis, the Decorative Business continues to grow at healthy double digit volume and value growths with strong CAGRs. The operating margins improved strongly on sequential basis as well as saw an improvement on a y-o-y basis driven by deflation in some of the raw material prices as well as continued work on driving operational efficiencies across businesses.
He further stated, The Industrial business did well led by strong growth in the Auto OE and General Industrial segments. The International Business was a mixed bag with good growth in the Middle East and Africa while the South Asia market, especially Sri Lanka and Bangladesh, got severely impacted by the adverse forex & macro-economic conditions.
The Home Dor market continued its expansion foray but witnessed some slowdown in the Bath and the Kitchen business this quarter. We continue to work diligently on multiple strategic initiatives to further strengthen our business model and deliver sustained value to all our stakeholders, Syngle added.
Asian Paints is India's leading paint company and ranked among the top ten Decorative coatings companies in the world. Asian Paints is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home dor, bath fittings and providing related services.
Shares of Asian Paints slipped 2.89% to Rs 2,860.65 on the BSE.
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