Asian Paints Q1 Results FY22-2023

Asian Paints announced its financial results for the April-June quarter of FY23 on 26th July 2022. The multinational paint company reported its profit after tax (PAT) at Rs. 1,016.93 crores. This is a stellar growth of 78.72% YoY (year on year) in Q1 FY23 from the Rs. 568.50 crore reported in Q1 FY22. 

The increase in profits can be attributed mainly to the increased revenue from operations, which stood at Rs. 8,606.94 crore in Q1 FY23, a 52.1% YoY increase from the Rs. 5,585.36 crore announced in the same quarter of the previous year. With construction business reviving and pre-monsoon renovations on in full swing, the consolidated sales for the quarter also increased by 55%. This was backed by a strong growth in the sales volume too. In fact, the company reported that its volume growth registered is one of the highest in the last six quarters.

Sales for Bath Fittings business increased by 120.1% YoY to Rs. 117.99 crores in Q1 FY23 from Rs. 53.61 crores reported in the corresponding period of the previous year. As for the sales in the Kitchens business, there was an increase of 68.3% YoY witnessed to Rs. 109.04 crores in Q1 FY23, from Rs. 64.79 crores in the corresponding period of the previous year.

Notably, Asian Paints has changed its segment reporting to a single reportable operating segment - "Paints and Home Decor". 

The economic crisis in Sri Lanka led to currency devaluation resulting in recognition of an exceptional item of Rs. 24.21 crores towards exchange loss arising on foreign currency obligations of Causeway Paints Lanka (Pvt.) Limited (Causeway Paints) for the quarter ended 30th June, 2022. 

The basic earnings per share (EPS) stood at Rs. 10.60 for Q1 FY23, a 78.75% YoY increase from Rs. 5.93 in Q1 FY22. However, the share was trading in the red at Rs. 3,089.80, down 0.49%, when the results were announced during the market hours. 

Hits

• Profit after tax (PAT) grew 78.72% YoY to Rs. 1,016.93 crores in Q1 FY23.
• Revenue from operations increased 52.1% YoY and stood at Rs. 8,606.94 crore in Q1 FY23.
• Consolidated sales for the quarter increased by 55%.
• Sales for Bath Fittings business increased by 120.1% YoY to Rs. 117.99 crores.
• Sales of the Kitchens business increased by 68.3% YoY to Rs. 109.04 crores.
• EPS stood at Rs. 10.60 for Q1 FY23, a 78.75% YoY increase from Rs. 5.93 in Q1 FY22. 

What the management says

“The domestic decorative business experienced good consumer demand and recorded stellar revenue growth for the quarter. The volume growth registered in the quarter is one of the highest in the last six quarters. The business also registered robust 4-year compounded growth in volume and value terms. The Auto OE and the General Industrial Coatings business delivered a sturdy growth trajectory. We continued to make further inroads in our Home Décor business, proliferating its product & service offerings. The International business also delivered a good double digit revenue growth for the quarter despite multiple headwinds across key geographies. While the persistent inflationary environment continued to impact the gross margins, we delivered healthy operating margins with strong push on the premium & luxury offerings and driving further operational efficiencies across businesses.”, said Amit Syngle, Managing Director & CEO of Asian Paints Limited.  

Other things to know

• Asian Paints is India’s leading paint company and was ranked among the top ten decorative coatings companies in the world with a consolidated turnover of Rs. 28,923.48 crores.
• Asian Paints,along with its subsidiaries, has operations in 15 countries across the world with 27 paint manufacturing facilities. The company servicing consumers in over 60 countries through Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints.
  

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Research Analyst: Bavadharini KS