Asian Paints Limited (APL) is India’s leading paint and decor company and ranked among the top 7 coatings companies in the world with a consolidated turnover of ₹ 34,489 crores (₹ 345 billion) with a market capital of approx. ₹ 3,400 billion. Asian Paints along with its subsidiaries have operations in 15 countries across the world with 27 paint manufacturing facilities, servicing consumers in over 60+ countries through Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints. Asian Paints also offers a wide range of Home Décor products and is an emerging strong player in the Home Improvement and Décor space in India.

Result Analysis: Asian Paints Limited

 (CMP: Rs. 3542.10)

Result Update: Q1FY24

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    Stock Details
    Market Cap. (Cr.) 339757.44
    Equity (Cr.) 95.92
    Face Value 1
    52 Wk. high/low 3590 / 2686
    BSE Code 500820
    Book Value (Rs) 166.73
    Sector Paints


    Key Ratios
    Debt-Equity: 0.12
    ROCE (%): 34.45
    ROE (%): 28.15
    TTM EPS: 43.10
    P/BV: 21.24
    TTM P/E: 82.18

    Result Highlights:

    • APL reported 6.7% YoY revenue growth to ₹9,1852cr. in the Q1FY24, driven by 10% volume growth in the decorative category (on a high base quarter) and a positive product mix. Additionally, both urban and rural markets have experienced double-digit volume increases.

    • GM increased by 520bps to 42.9% in Q1FY24, the highest level in the previous nine quarters mainly due to declining RM inflation. During the quarter, a further 2% raw material deflation was seen. Future RM prices are anticipated to be steady, leading to a strong GM.

    • To achieve a total of roughly 1.6 lac retail touchpoints in the Q1, the business added about 6k retail points, exceeding its original projection
      of 10k to 15k retail points for the entire year FY24.

    • APL’s Kitchen and Bath business revenue declined YoY due to a high base quarter, the decorative lighting business performed well, with White Teak and Weatherseal reporting strong growth, international business in CC terms grew, but sales in INR terms declined due to currency deflation, and industrial business performed well, with both auto and industrial coatings segments registering strong growth.

    • Over the next three years, the company intends to invest INR 87.5 billion in the expansion of capacity. The ongoing capacity expansion initiatives are going well and will be finished by the end of the year.

    Financial Performance:

    Shareholding Pattern:

    Particulars (In%) Q1FY23 Q1FY24
    Promoters Group 52.63 52.63
    FIIs 19.78 18.73
    DIIs 8.42 10.05
    Public 13.58 13.17
    Others 5.59 5.42

    Management Commentary:

    Commenting on the June quarter results, Amit Syngle, CEO and MD said, “Our Domestic Decorative business registered double digit volume growth and a relatively healthy value growth, coming on a high base of the previous year. Both the Auto OE and the General Industrial coating businesses achieved a strong double‐digit revenue growth, led by growth in the Protective & Powder Coatings segment. Our international business was supported by good deliveries from the Middle East region however, continued macro‐economic challenges and adverse forex conditions in Asian markets, resulted in an overall subdued growth for the international portfolio. Overall, we have recorded significant improvement in margins, both sequentially as well as on year‐on‐year basis, aided by strong efforts on driving operational, formulation and sourcing efficiencies and supported by easing inflation in raw material prices. Looking ahead, we remain focused on pursuing growth and are confident about a robust festival season ahead”


    APL’s Q1FY24 revenue growth was in line. While the luxury category is struggling and may contemplate lowering prices, if required, the economy and premium categories are also expanding significantly. Rural market growth is improving and was virtually ahead of urban market growth in Q1. The whole industry may experience a shift in demand and margin structure owing to increased competition with the introduction of new companies with big wallets and significant investment commitments. In the future, we think that deflationary tendencies and an improvement in the product mix would be favorable for the paint sector. Since APL is the market leader, it stands to reason that it will gain the most.



    Particulars (In Rs. Cr.) Q1FY24 Q4FY23 Q1FY23 QoQ% YoY%
    Revenue from Operations 9,182 8,787 8,607 4.5% 6.7%
    Other Income 197 105 99 86.8% 99.1%
    Total Income 9,379 8,893 8,706 5.5% 7.7%
    Cost of materials consumed 4,071 3,979 4,610 2.3% -11.7%
    Purchase of Stock-in-Trade 857 885 1,063 -3.2% -19.4%
    Changes in inventories 313 189 -312
    Employee expense 546 522 490 4.5% 11.5%
    Other Expenses 1,275 1,347 1,200 -5.4% 6.3%
    EBITDA 2,121 1,865 1,556 13.8% 36.3%
    EBITDA Margin (%) 23.1% 21.2% 18.1% 190 bps 500 bps
    Finance Cost 46 39 29 17.6% 59.1%
    Depreciation & Amortisation expense 198 220 208 -9.9% -4.7%
    Profit Before Tax (PBT) 2,074 1,711 1,418 21.2% 46.3%
    Tax 530 451 371 17.4% 43.0%
    Exceptional Items-incomes/expenditure 31 -1 -11
    Profit After Tax (PAT) 1,575 1,258 1,036 25.1% 52.0%
    PAT Margin (%) 17.2% 14.3% 12.0% 290 bps 620 bps
    EPS (in Rs.) 16.17 12.87 10.60 25.6% 52.5%
    Source: Company website, EWL Research

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