Asian Paints Q1 results FY2023: PAT up 80% YoY on robust consumer demand; sales up 60%

Asian Paints Q1 results FY2023: Asian Paints Limited reported a consolidated net profit of Rs 1036 cr which was up nearly 80 per cent Year-on-Year (YoY) for the quarter ended 30 June 2022 versus Rs 574 cr fro Q1 of FY22, the company said in its filing the stock exchanges. Q1 FY23 consolidated sales increased by 55 per cent YoY to Rs  8,578.88 cr from Rs 5,534.87 cr. The uptick in Profit After Tax (PAT) was on the back of robust consumer demand in the domestic decorative business. In the process, the company posted one of its highest volume growth over six quarters, the release claimed. 

Asian Paints Consolidated Results: other highlights:

1) Q1 FY23 consolidated sales increased by 55 per cent YoY to Rs  8,578.88 cr from Rs 5,534.87 cr.

2) Profit before depreciation, interest, tax and other income (PBDIT) for the group (before share in profit of associates) increases by 70.3 per cent to Rs 1,555.95 cr from Rs 913.56 cr.

3) Profit before exceptional items and tax increases by 83.8 per cent to Rs 1,430.83 crores from Rs  778.58 cr.

4) Net Profit after Minority Interest increases by 78.9 per cent to Rs 1,016.93 cr as compared to Rs 568.50 cr in the corresponding period of previous year.

Asian Paints Standalone Results for Q1FY23:

1) Sales increases by 59.6 per cent to Rs 7,555.80 cr from Rs 4,733.30 cr.

2) PBDIT for the quarter increases by 65.8 per cent to Rs 1,462.58 cr from Rs 881.95 cr.

3) Profit before tax increases by 72.7 per cent to Rs 1,372.41 cr as compared to Rs 794.66 cr in the corresponding period of previous year.

4) Net Profit on a Standalone basis increases by 70.7 per cent to Rs 1,017.28 cro from Rs 595.86 cr. 

Impact of Sri Lanka Crisis: Economic crisis in Sri Lanka led to currency devaluation resulting in recognition of an exceptional item of Rs 24.21 cr towards exchange loss arising on foreign currency
obligations of Causeway Paints Lanka (Pvt.) Limited (Causeway Paints) for the quarter ended 30th June, 2022, the filing said.

Final dividend of Rs 15.50 per equity share for the financial year ended 31 March, 2022, was paid on 1 July, 2022, the exchange filing said.

“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," Amit Syngle, Managing Director & Chief Executive Officer said.

"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," he said.

"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,” Syngle said.

The results were announced after market hours. The Asian Paints shares today ended at Rs 3105, flat from the Monday closing price.