Asian Paints revealed a remarkable surge in third-quarter profits, exceeding market expectations, for the quarter ending December 31, Reuters reported.
The company’s consolidated net profit witnessed an impressive 35 per cent increase, reaching 14.48 billion rupees ($174.15 million).
According to data from the London Stock Exchange Group (LSEG), analysts had anticipated an average profit of 14.04 billion rupees.
Asian Paints’ success in outperforming these predictions is attributed to robust sales in its core decorative business, contributing significantly to the positive financial outcome.
The decorative segment, constituting about 80 per cent of the company’s total revenue, experienced a notable 12 per cent volume growth. This growth played a pivotal role in driving the overall revenue up by over 5 per cent, reaching 90.75 billion rupees.
CEO and Managing Director Amit Syngle credited the extended festive season for the impressive performance. Despite a slight dip in demand towards the end of the quarter, the festive season, which commenced late October in 2023, provided substantial support to the company’s growth.
Asian Paints managed to maintain stable input costs during the December quarter, even with the easing of crude prices.
Notably, crude oil accounts for approximately one-third of the input costs for paint companies. This resilience in managing costs contributed to the positive financial results.
Although the company’s shares saw minimal change following the announcement, they have experienced a 5 per cent decline since the beginning of the year.
In terms of international sales, Asian Paints faced challenges, with flat growth attributed to macroeconomic difficulties and inflation in key markets such as South Asia and Egypt.
Asian Paints has taken the lead amongst its industry peers, including Berger Paints India, Kansai Nerolac Paints, and Indigo Paints, in reporting quarterly results.
While Kansai saw a 2 per cent increase in its shares, other paint companies witnessed a decline in their stock values for the year.