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Akshay Rajawat    

Surat, India

I am CA student and along side perusing the CFA (U.S.). I have a 6 month experience in Equity Research where i have done my internship programme in the same. I am keen to write an articles on Equity.

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Contributor since: 2022







Asian Paints Ltd

A Q3FY23 Earnings Analysis

About Asian Paints

Asian Paints is India’s leading paint and decor company and ranked among the top ten Decorative coatings companies in the world with a consolidated turnover of ₹ 29,101.28 crores (₹ 291 billion) with a market capital of approx. ₹ 3100 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. 

Q3FY23 Result

Asian Paints Consolidated Results, Q3 FY’23:

  • Consolidated Sales increased by 1.7 % to ₹ 8,607.50 crores from ₹ 8,462.15 crores.
  • Profit before depreciation, interest, tax and other income (PBDIT) for the Group (before share of profit in associates) increased by 4.5 % to ₹ 1,611.43 crores from ₹ 1,542.31 crores.
  • Profit before exceptional items and tax increased by 6.1 % to ₹ 1,478.20 crores from ₹ 1,393.72
  • Net profit after minority interest increased by 5.6 % to ₹ 1,072.67 crores from ₹ 1,015.69 crores.

Asian Paints Consolidated Results, 9M FY’23:

  • Consolidated Sales increased by 21.8 % to ₹ 25,616.98 crores from ₹ 21,033.53 crores. PBDIT for the Group (before share of profit in associates) increased by 30.8 % to ₹ 4,395.08 crores from ₹ 3,360.32 crores.
  • Profit before exceptional items and tax increased by 33.5 % to ₹ 4,003.19 crores from ₹ 2,998.54 crores.
  • Net profit after minority interest increased by 31.7 % to ₹ 2,872.31 crores from ₹ 2,180.15 crores.

Segment Wise Performance

Decorative Business

Flat volume & value sales for the quarter despite multiple headwinds Strong Business Momentum evident from double digit 3-year compounded growth

Decorative Business (India) - Volume Growth Trend Throughout the Quarter 

Decorative Business Cont...

Extended monsoon & shorter Diwali season coupled with a high-volume base impacted overall growth in Q3’23, especially in North, Central & West markets
- Tepid growth across markets - T1/T2 as well as T3/T4 centers
- However, strong recovery recorded in December with double digit volume growth across markets

Mix led by Economy & Waterproofing range, with downtrading seen in certain Premium range products. Luxury Emulsions performed relatively better
- Last year Q3 product mix comparatively better with pre-stocking on price increases in Nov’21 & Dec’21

Strong foray in Project/Institutional business – gained inroads across segments
- Grew well in Government, Factories, CHS & Builder segments

Continued expansion of the distribution footprint with harmonious co-existence of Distributor + Direct Dealer model
- Added ~10000 new retail points in 9M; enhancing our Rurban distribution reach

Improving Customer experience with Safe Painting Service (SPS) & Trusted Contractor Service (TCS) – the largest of its kind painting service in the world, now available across 834 towns

Home Decor Business

Bath Fittings business: Sales decreased by 10.9% in Q3 FY’23 to ₹ 89.84 crores from ₹ 100.84 crores. PBDIT was ₹ 0.07 crores in Q3 FY’23 as against ₹ 2.47 crores in the corresponding period of previous year.

Sales increased by 25.7% in 9M FY’23 to ₹ 309.60 crores from ₹ 246.21 crores. PBDIT was ₹ 5.50 crores in 9M FY’23 as against ₹ 5.30 crores in the corresponding period of previous year.

Kitchen business: Sales decreased by 7.1% in Q3 FY’23 to ₹ 100.68 crores from ₹ 108.41 crores. PBDIT loss was ₹ 3.26 crores in Q3 FY’23 as against profit of ₹ 1.82 crores in the corresponding period of previous year.

Sales increased by 18.5% in 9M FY’23 to ₹ 327.55 crores from ₹ 276.35 crores. PBDIT loss was ₹ 8.18 crores in 9M FY’23 as against loss of ₹ 2.30 crores in the corresponding period of previous year.

Whiteteak (lighting) generated revenue of ₹ 28.46 crores in Q3 FY’23 and ₹ 72.71 crores in 9M FY’23. Weatherseal (uPVC windows and doors) generated revenue of ₹ 6.80 crores in Q3 FY’23 and ₹ 15.05 crores in 9M FY’23. 

Home decor current business highlights

Transitioning from ‘Share of Surface’ to ‘Share of Space’ within the Homes

  • Beautiful Home Stores – Home Décor under one roof
  • 38 stores functional now across metros, T1/T2 cities
  • Beautiful Homes Service – Personalized Interior Design to Professional Execution – offered in 11 cities
  • – inspiring millions to create their dream homes

Home decor's acquired business performance:

  • White Teak offering Decorative and Designer Lighting and Weatherseal offering uPVC Windows and Doors - gaining from the synergies
  • White Teak generated revenue of Rs 29 crs during Q3; 9M revenue of Rs 73 crs against full year revenue of Rs 58 crs last year
  • Weatherseal - Revenue of Rs 7 crs during Q3; Revenue of Rs 15 crs for Jun’22 to Dec’22 period against full year revenue of Rs 14 crs last year
    • Both businesses benefiting from the integration with the Beautiful Homes Stores network

Kitchen Business

Net Sales @ Rs 101 crs in Q3, de-growth of 7%
- Slower demand in retail channel
- Strong integration with BH Store & BH Service aiding growth in full kitchen business

Higher Loss compared to LY due to subdued sales

  • Loss of Rs. 6 crs in Q3 vs breakeven LY

Bath Business

Net Sales @ Rs 90 crs in Q3, de-growth of 11%
- Projects business continues to lead growth amid challenging situation in Retail
- Premium range ‘Bath Sense’ & Sanitary ware performing well
- Subdued sales and material inflation hurting profitability
- Loss of Rs 1 crs in Q3 (vs Rs 1.3 crs profit in LY)

International Business

Business conditions remained challenging in Asian markets while improvement seen in other geographies
- Focus on PreLux & Waterproofing categories playing out well
- Overall, International Business revenue: Q3 at Rs. 779 crs (+2%) & 9M at Rs 2,290 crs (+11%)
- Q3 growth largely led by price increases
- Significantly improved Profitability on the back of price increases undertaken to negate inflation and cost efficiency measures
- Q3 PBT Rs. 37 crs against Rs 11 crs in LY (9M PBT at Rs 118 crs vs loss of 17 crs LY)

Industrial Business

- High double digit value growth led by demand recovery in Automotive segment
- Price realizations helped improve PBT margins for the quarter & 9 months to double digits

- Continued to exhibit strong growth trajectory across business segments
- Price increases coupled with improved sales mix helping improvement in PBT margins

Gross Margin of the company and their trend

Financial Performance during Q3FY23 and 9MQ3FY23


Demand conditions looking better – recent downturn in inflation as well as the strong recovery seen with double digit volume and value growth in Dec’22
- Good monsoon coupled with expected increases in MSP augurs well for Rural sector
- Material prices expected to further soften in Q4; Will further improve margins
- B2B projects business should continue its growth trajectory with support from demand in Housing, Construction, Auto and Industrial
- Need to be watchful of the recessionary fears on the global front
- Forex pressure persisting in many of the African as well as Asian markets


I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Source - Company Presentation, Press Release and Analyst Conference Call. DIsc - This is not an recommendation as it is for knowledge purpose only.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


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