Asian Paints (APL) is India’s largest decorative paint company. The company derives ~98% revenue from the paints business while 2% business comes from the home improvement business (kitchen and bathroom fittings).
Strong distribution network of 70,000 dealers, 2x more than the No. 2 player
Despite being in a capital intensive business, the company has maintained a strong balance sheet with RoCE, RoE of 31%, 27%, respectively
Q3FY22 Result
The Q3 performance was ahead of our estimates on all fronts led by strong volume growth even on a higher base of last year.
Reported revenue growth of 26% YoY to Rs 8527 crore (up 20% QoQ), led by volume growth of 18%
Gross margins declined 832 bps YoY, resulting in overall fall in EBITDA margin by 825 bps YoY to 18.1%
PAT fell 19% YoY to ~Rs 1026 crore, ahead of our estimate of Rs 921 crore
The company took a price hike of 4% in Q2FY22 and has further guided to take price hikes to offset higher input prices
Net sales increased by 6.7% to Rs 9,153.8 crore from Rs 8,578.9 crore.
Improvement in gross margins by 530 basis points in Q1FY24 as compared to Q1FY23.
PBDIT [profit before depreciation, interest, tax, other income, and exceptional items] (before sharing in profit of associates) increased by 36.3% to Rs 2,121.3 crore from Rs 1,556.0 crore.
PBDIT margin as % to net sales improved to 23.2% from 18.1% in Q1FY23 and 21.3% in Q4FY23.
Profit before exceptional items and tax increased by 47.1% to Rs 2,105.0 crore from Rs 1,430.8 crore.
Net profit after minority interest increased by 52.5% to Rs 1,550.4 crore from Rs 1,016.9 crore
Standalone Q1FY24:
Net sales increased by 7.0% to Rs 8,084.9 crore from Rs 7,555.8 crore.
Improvement in gross margins by 550 basis points in Q1FY24 as compared to Q1FY23.
PBDIT for Q1FY24 increased by 36.7% to Rs 1,999.8 crore from Rs 1,462.6 crore.
PBDIT margin as % to net sales improved to 24.7% from 19.4% in Q1FY23 and 23.0% in Q4FY23.
Profit before tax increased by 47.1% to Rs 2,018.2 crore from Rs 1,372.4 crore.
Net profit increased by 48.3% to Rs 1,508.4 crore from Rs 1,017.3 crore.
“Our domestic decorative business registered double-digit volume growth and relatively healthy value growth, coming on a high base of the previous year. Both the auto OE and the general industrial coating businesses achieved strong double-digit revenue growth, led by growth in the protective & powder coatings segment. Our international business was supported by good deliveries from the Middle East region, however, continued macroeconomic challenges and adverse forex conditions in Asian markets, resulted in overall subdued growth for the international portfolio. On the Home Décor front, categories like fabrics, decorative lighting, UPVC doors & windows maintained their high growth trajectory. However, the Kitchen and Bath business segments were sluggish.
Overall, we have recorded significant improvement in margins, both sequentially as well as on YoY basis, aided by strong efforts to drive operational, formulation, and sourcing efficiencies and supported by easing inflation in raw material prices. Looking ahead, we remain focused on pursuing growth and are confident about a robust festival season ahead”, said Amit Syngle, Managing Director & CEO of Asian Paints.
Asian Paints Limited is engaged in manufacturing paints. The company has its market capitalization worth INR2,55,702.95 crore as of 16th April 2021. This company was established in 1942. The company has reported quarterly revenue of INR5,872.81 crore at the end of December 2020. This company is listed on the Bombay Stock Exchange (BSE), having the code 500820 and on the National Stock Exchange (NSE) with the symbol ASIANPAINT.
The company is an Indian multinational paint manufacturing company engaged in manufacturing, selling and distributing paints and products about home decor, bath fittings, and related services. The company has its headquarters in Mumbai.
In 1945, Asian paints Ltd. was incorporated, and the company changed its name to Asian Paints (India) Pvt. Ltd. in the year 1965. In 1973, the corporation became a public limited company. Asian Paints Ltd. is India's largest paint manufacturer, Asia's third-largest, and ranks among the world's top ten paint manufacturers. The company has 27 paint production plants in 22 countries and serves clients in 65 countries. The company has established its manufacturing plants in Maharashtra, Gujarat, Andhra Pradesh, Uttar Pradesh, Tamil Nadu and Haryana. Some of the subsidiaries of Asian Paints are- Sleek International Private Ltd., Asian Paints (Middle East) LLC, Asian Paints Industrial Coating Ltd. and Kitchen Grace India Private Ltd., among others. The company began commercial manufacture of water-based paints and intermediaries in the state of Karnataka in 2019, with a potential of 3 lakh kilolitres per year, which made its ultimate capacity of 6 Lakh KL p.a. and another plant at Visakhapatnam with an initial capacity of 3 Lakh KL p.a. and making the maximum capacity to 5 Lakh KL p.a. The firm offers a wide variety of facilities to meet the demands of large schemes such as co-operative housing associations, institutes, and government agencies. The company reported an increase in profits over the last two years, with Rs.840 crores in March 2019 and Rs.1240 crores in March 2020. The debt of the company stands Rs.1644 crores as of March 2021. The firm operates in all four decorative colours, including Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wall Finishes, and Exterior Wall Finishes, Enamels and Wood Finishes. Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting solutions for kids' rooms), Colour Next (prediction of colour trends by in-depth research), and Royale Play Special Effect Paints are just a couple of the innovative paint ideas they've introduced to the Indian market.
Asian Paints Limited is engaged in manufacturing paints. The company has its market capitalization worth INR2,55,702.95 crore as of 16th April 2021. This company was established in 1942. The company has reported quarterly revenue of INR5,872.81 crore at the end of December 2020. This company is listed on the Bombay Stock Exchange (BSE), having the code 500820 and on the National Stock Exchange (NSE) with the symbol ASIANPAINT.
The company is an Indian multinational paint manufacturing company engaged in manufacturing, selling and distributing paints and products about home decor, bath fittings, and related services. The company has its headquarters in Mumbai.
In 1945, Asian paints Ltd. was incorporated, and the company changed its name to Asian Paints (India) Pvt. Ltd. in the year 1965. In 1973, the corporation became a public limited company. Asian Paints Ltd. is India's largest paint manufacturer, Asia's third-largest, and ranks among the world's top ten paint manufacturers. The company has 27 paint production plants in 22 countries and serves clients in 65 countries. The company has established its manufacturing plants in Maharashtra, Gujarat, Andhra Pradesh, Uttar Pradesh, Tamil Nadu and Haryana. Some of the subsidiaries of Asian Paints are- Sleek International Private Ltd., Asian Paints (Middle East) LLC, Asian Paints Industrial Coating Ltd. and Kitchen Grace India Private Ltd., among others. The company began commercial manufacture of water-based paints and intermediaries in the state of Karnataka in 2019, with a potential of 3 lakh kilolitres per year, which made its ultimate capacity of 6 Lakh KL p.a. and another plant at Visakhapatnam with an initial capacity of 3 Lakh KL p.a. and making the maximum capacity to 5 Lakh KL p.a. The firm offers a wide variety of facilities to meet the demands of large schemes such as co-operative housing associations, institutes, and government agencies. The company reported an increase in profits over the last two years, with Rs.840 crores in March 2019 and Rs.1240 crores in March 2020. The debt of the company stands Rs.1644 crores as of March 2021. The firm operates in all four decorative colours, including Interior Wall Finishes, Exterior Wall Finishes, Enamels and Wall Finishes, and Exterior Wall Finishes, Enamels and Wood Finishes. Colour Worlds (Dealer Tinting Systems), Home Solutions (painting solutions Service), Kids World (painting solutions for kids' rooms), Colour Next (prediction of colour trends by in-depth research), and Royale Play Special Effect Paints are just a couple of the innovative paint ideas they've introduced to the Indian market.
You can buy Asian Paints Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Asian Paints Ltd Share.
Company share prices and volatile and keep changing according to the market conditions. As of Sep 26, 2023 12:04 PM the closing price of Asian Paints Ltd was ₹ 3,285.95.
Market capitalization or market cap is determined by multiplying the current market price of a company’s shares with the total number of shares outstanding. As of Sep 26, 2023 12:04 PM, the market cap of Asian Paints Ltd stood at ₹ 315,187.67.
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