Asian Paints Q4 Results: Net profit up 1.3% to ₹1,275 crore, revenue drops marginally; dividend declared

Asian Paints said that the company’s board of directors has recommended a final dividend of ₹28.15 per equity share. The company had declared an interim dividend of ₹5.15 per equity share in October 2023 for FY24, and so the total dividend for the previous fiscal stands at ₹33.30 per equity share.

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Asian Paints Q4 Results – Key Metrics

The total expenses during the fourth quarter were higher at ₹7,319.1 crore compared to ₹7,181.66 crore in the year-ago period. On the operating front, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the March quarter dropped 9.3 per cent to ₹1,692 crore, compared to ₹1,865 crore in the same period last year.

Margin dropped 170 basis points in the quarter-under-review to 19.4 per cent compared to 21 per cent in the year-ago period. The drop in fourth quarter revenue came as buyers switching to cheaper alternatives and price cuts to weather tougher competition weighed on the paint manufacturer.

Volumes at the company’s mainstay domestic decorative business grew 10 per cent in the quarter, but revenue declined due to a weak demand environment and customers switching to cheaper options, the company said in a statement.

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Macroeconomic headwinds in key geographies of Nepal and Egypt hit revenue growth in its international business, added the company. ‘’Board recommended payment of final dividend of Rs. 28.15 per equity share of the face value of Re. 1 each for the financial year ended 31st March 2024, subject to the approval of the shareholders at the ensuing Annual General Meeting,” said Asian Paints.

The total dividend for the financial year ended 31 st March 2024, aggregates to Rs. 33.30 per equity share of the face value of Re. 1 each (dividend payout ratio of 60 per cent), including the interim dividend of Rs. 5.15 per equity share as approved by the board at their meeting held in October 2023, which was paid thereafter, according to Asian Paint’s statement in its stock exchange filing.

The company has fixed June 11, 2024 as the record date for determining the eligible members to the final dividend for FY24. The dividend, if approved by the shareholders will be paid on or after June 27, 2024, added Asian Paints.

For the entire fiscal FY24, the company’s consolidated net profit was ₹5,557.69 crore compared to ₹4,195.33 crore in the previous year. The revenue from operations in FY24 was ₹35,494.73 crore against ₹34,488.59 crore in FY23.

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“We crossed the ₹35,000 crore consolidated revenue milestone in FY2024. Our Decorative & Industrial coatings combined delivered volume growth of 10 per cent and value growth of 3.9 per cent for the year with our industrial segment registering double-digit value growth,” said Amit Syngle, CEO and Managing Director, Asian Paints.

He said the company’s international business has seen steady growth in the Middle Eastern and African markets but remains constrained by macroeconomic headwinds in South Asia and Egypt. “Despite these challenges, profit delivery in the global business has been strong all through the year,” Syngle added. 

On the outlook for FY25, he said, “We remain confident about a pick-up in demand conditions with a favourable monsoon forecast”. Shares of Asian Paints were last trading 4.59 per cent lower at ₹2,713.70 apiece on the BSE.

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Published: 09 May 2024, 02:39 PM IST