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Published: Jan 20, 2023
Updated: Jan 20, 2023

Asian Paints Q3 Results: A Splash of Color in a Damp Quarter

Asian Paints, the leading paint manufacturer in India, recently released its Q3 results for the fiscal year 2022. Despite a challenging quarter, the company was able to report a 6.37% growth in consolidated net profit, coming in at Rs 1,097.06 crore.

Domestic Decorative Business: A Flat Performance

The domestic decorative business, a key segment for Asian Paints, saw a flat performance in terms of volume and value sales. The company attributed this to a high price increase base in the previous year, as well as the extended monsoon in October which affected retailing during the peak festival season. However, demand picked up in November and December, resulting in double-digit growth for the decorative business in December.

Industrial Business: A Bright Spot

The industrial business segment, which includes the Auto OE and general industrial segments, saw strong growth in the quarter. This was a positive development for the company, as it offset some of the challenges faced by the domestic decorative business.

International Business: A Mixed Bag

Asian Paints' international business also had a mixed performance in the quarter. The Middle East and Africa saw good growth, but the South Asia market, particularly Sri Lanka and Bangladesh, was impacted by adverse forex and macro-economic conditions. Despite this, the international business' sales increased by 2.1% to Rs 778,82 crores from Rs 762.43 crore. In constant currency terms, sales increased by 13.4 percent.

Growth in net profits , though missed analysts expectations

Overall, the Q3 results for Asian Paints show a company that is navigating a challenging economic environment and still able to report growth in net profit. While the domestic decorative business saw a flat performance, the industrial business and international business segments provided some bright spots. The company's management remains optimistic about the future, with CEO Amit Syngle stating, "we remain confident of delivering a strong performance in the coming quarter."