Asian Paints Q4 Results: Weak demand drags company’s sales, profit below view
The country’s largest paint-maker saw demand in rural regions impacted due to inflationary pressure, contracting volume growth but reported a double-digit growth in urban areas.
The weak earnings saw the stock come under pressure and extend losses to close nearly 5% lower at Rs 2,710.10 rupees on the NSE on Thursday. The shares are down 20.3% so far in 2024.
Volume of the domestic decorative business increased by 10% year-on-year in the March quarter. And while the company was able to clock a double-digit growth, it was slower than the 12% growth seen in the previous quarter and 16% in the year-ago quarter.
The revenue on a standalone basis – which majorly captures the domestic decorative business — fell nearly 2% on year to Rs 7,443.9 crore. Analysts had estimated the sales to grow 4-5% on year.
“…revenues were 1.8% lower than last year impacted by the weak demand environment and downtrading, particularly in the Premium segment,” chief executive officer Amit Syngle was quoted as saying in a press release.
“The Economy and Luxury range though, grew well. Price cuts implemented in the last few months also affected the fourth quarter value,” he said.
At a standalone level, the company’s profit before depreciation, interest, and tax fell more than 11% on year to Rs 1,548.8 crore, while operating margins slipped 220 basis points as compared to the previous year to 20.8%. Net profit fell 2% on year to Rs 1,209.4 crore.
The international division, which contributes around 9% to the consolidated revenue, reported
