Asian Paints Q1 Results: Consolidated PAT increases by 53% year over year to Rs 1,550 crore

26 Jul 2023 , 12:13 PM

Asian Paints announced on Tuesday that its consolidated net profit for the June quarter increased by 52.5% year over year to Rs 1,550.37 crore.

Although it climbed by almost 7% YoY to Rs 9,182.31 crore, the total revenue from operations fell short of the expected Rs 9,358 crore.

Operating profit for the paint manufacturer surged by 36.3% year over year to Rs 2,121.3 crore, while gross margins increased by a staggering 530 basis points (bps) in the quarter.

As a result, the operating margin increased from 21.3% last quarter and 18.1% a year ago to 23.2% today.

However, due to economic unpredictability, the FX crisis, and liquidity problems in important markets in Asia and Africa, sales in the overseas division fell by 1.4% to Rs 695 crore, the company reported. Sales rose by around 4% when measured in terms of constant currency.

A high growth trajectory in fabrics, decorative lighting, and UPVC windows and doors helped the home decor industry.

In the quarter, the industrial sector’s revenue growth trend remained in the double digits.

Strong double-digit sales growth was achieved by both the car OE and general industrial coating industries, with the protective and powder coatings segment leading the way.

‘Overall, we have recorded significant improvement in margins, both sequentially and on a year-over-year basis,’ said Amit Syngle, MD & CEO of Asian Paints. ‘This has been made possible by strong efforts to drive operational, formulation, and sourcing efficiencies and supported by easing inflation in raw material prices.

We are hopeful that the upcoming festival season will be active as we continue to pursue expansion, he added.

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