Asian Paints Profit Surges 53% in Q2, Revenue Stagnates

26 Oct 2023 , 03:46 PM

Asian Paints announced its financial results for the second quarter of the fiscal year 2023-24, reporting a consolidated net profit of Rs 1,232.39 crore, which marked a substantial 53.31% increase from the previous year’s figure. However, the profit declined by 21.74% sequentially. The company reported a marginal 0.03% YoY increase in consolidated revenue, reaching Rs 8,478.57 crore in the September quarter, while it declined by 7.66% compared to the June quarter. The Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) stood at Rs 1,717 crore, significantly higher than the previous year, with an EBITDA margin of 20.2%.

The company also announced an interim dividend of Rs 5.15 per equity share with a face value of Re. 1 for the fiscal year ending on March 31, 2024. International business sales faced challenges in South Asia and Egypt, resulting in a 3.9% decline, although there was a 1.9% growth in constant currency. Home Décor experienced a decline in Bath Fittings and Kitchen sales, while acquisitions White Teak and Weather seal reported growth. The Industrial sector’s APPPG sales showed a robust growth of 11.4% in Q2 FY24.

However, despite the strong profit performance, Asian Paints shares faced a decline of 2.25% on the National Stock Exchange due to revenue disappointment during the second quarter.