Asian Paints had a profitable third quarter, making a net profit of Rs 1,475.16 crore, a 34.4% jump over the same time previous year. The company’s sales also increased by 5.4% to Rs 9,104 crore. The increase was in line with three brokerage firms’ estimates of earnings range of Rs 9,200 crore-9,330 crore for the October-December quarter.
The Decorative Business for India had a 12% increase in quantity and a 5.5% increase in price sales. The total revenue for the period jumped by 7.37% compared to the September quarter.
Asian Paints performance was improved by an extended holiday season, which contributed to strengthening the Auto Aftermarket and General Industrial coating sectors. Amit Syngle, Managing Director & CEO, said the Home Décor market performed better this quarter, with fresh segments finding recognition. Increased sales of costly products and decreased costs of raw materials, as well as efficient operations in Q3, raised the profits of the business.
International sales were unchanged at Rs 779.1 crore due to economic issues and inflation in key regions such as South Asia and Egypt. However, constant dollar terms showed a 5.2% rise. Sales in the bath fitting industry fell 5.0%, while sales in the kitchen business remained unchanged following four quarters of negative growth. On a positive note, White Teak sales increased by 18.3%, while Weatherseal sales more than doubled.
The business successfully completed site expansions at Khandala and Kasna, resulting in greater total capacity for production. Despite these excellent results, Asian Paints’ shares finished 1.44% down at Rs 3,249.95 on the BSE on January 17.