Asian Paints, the Indian paint company, has announced its Q4 results for the fiscal year ending March 31, 2023. The company’s revenue from operations increased by over 11% to INR 87.87 billion ($1.2 billion). Its consolidated net profit stood at INR 1,234 crore ($150.9 million) compared to INR 850 crore the previous year, driven by strong demand for decorative paints and the decrease in input costs. The board has recommended a final dividend of INR 21.25 per share.
The Company’s Performance
The company’s profit has increased by 45% compared to the previous year, thanks to robust demand and easing input costs. The one-time expense of INR 116 crore was also included in the previous year. Asian Paints dominates nearly half of the domestic paints sector, and the decorative paint segment accounts for about 80% of the company’s revenue.
Impact of Easing Input Costs
The high volatility in crude, which accounts for about 30% of raw material costs, has corrected from its 2022 high of $139.13 per barrel when it drove up Asian Paints’ raw materials expenses over 21%. Its cost of materials consumed declined nearly 5% during the fourth quarter.
The CEO’s Statement
Amit Syngle, the company’s CEO and managing director, said work on formulation and sourcing efficiencies, and easing inflation in raw material prices improved margins sequentially and over last year. In the home décor business, the new categories of fabrics, decorative lighting, UPVC doors and windows performed well, while Kitchen and bath were sluggish. The Global business was good in Middle East and Africa but slower in Asia, however overall, delivered good bottom line numbers.
Shares of Asian Paints rose nearly 3% after the results were announced. Kansai Nerolac, the company’s smaller rival, reported a nearly fourfold surge in quarterly profit earlier this week.
Asian Paints’ Q4 performance demonstrates the impact of robust demand and easing input costs on the company’s financial performance, which led to a 45% rise in net profit. The final dividend of INR 21.25 per share recommended by the board is a testament to the company’s profitability.
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