Asian Paints’ net profit up 52% in Q1 FY24, Real Estate News, ET RealEstate

August 26, 2023

NEW DELHI: Asian Paints has reported a growth of 52.01 per cent in its net consolidated profit during the quarter ended June 30, 2023. Its profit after tax stood at Rs 1,574.84 crore in Q1 FY24 as against Rs 1,036.03 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.

The company’s net consolidated total income stood at Rs 9,379.38 crore in Q1 FY24, a growth of 7.74 per cent from Rs 8,705.91 crore it recorded in the similar quarter last year.

The board of directors have unanimously approved the appointment of Ireena Vittal as an additional and independent director of the company for a period of five years with effect from July 25, 2023 to July 24, 2028.

The board also appointed R. Seshasayee, independent director, as the chairman of the Board and the company with effect from October 1, 2023 upto the conclusion of his term of appointment on January 22, 2027. Seshasayee will replace Deepak Satwalekar who will retire on the conclusion of his term of appointment on September 30, 2023.

Manish Choksi will continue to be the non–executive vice chairman of the company, it said in a BSE filing.

Consolidated net sales were at Rs 9,154 crore, up 6.7%, gross margins improved by 530 basis points in Q1 FY24 as compared to Q1 FY23, the company said in a media release.

“Our domestic decorative business registered double digit volume growth and a relatively healthy value growth, coming on a high base of the previous year. On the home décor front, categories like fabrics, decorative lighting, UPVC doors & windows maintained their high growth trajectory. However, the Kitchen and Bath business segments were sluggish. 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,” said Amit Syngle, managing director & CEO of the company.During the quarter, bath fittings business sales decreased by 28.2% to Rs 84.7 crores from Rs 118 crores on the back of high base in the last year due to price increases, kitchen business sales decreased by 12% to Rs 96 crore from Rs 109 crore on the back of high base in the last year due to price increases.

On June 23, 2023, the company has further acquired 11% stake of White Teak from its existing shareholders for a cash consideration of Rs 53.8 crore. This is part of the staggered buyout plan and consequently, White Teak has become a subsidiary.

On May 2, 2023, an investment holding subsidiary company, namely, Asian White Cement Holding (AWCHL) was incorporated in Dubai International Financial Centre, United Arab Emirates (UAE), for the purpose of setting up an operating company in Fujairah, UAE. The company holds 70% of equity share capital in AWCHL and has infused initial equity share capital of Rs 26.99 crore on June 14, 2023. AWCHL has incorporated a wholly owned subsidiary company, namely, Asian White Inc. FZE in Fujairah Free Zone, UAE, on June 26, 2023 for the purpose of carrying out the business of manufacturing, trading, and export of white cement.

On June 26, 2023, the company has further infused Rs 100 crore as equity share capital into Asian Paints (Polymers) (APPPL), a wholly owned subsidiary of the company, which was incorporated on January 11, 2023 for manufacturing of Vinyl Acetate Monomer and Vinyl Acetate Ethylene Emulsion in India. The equity share capital of APPPL now stands at Rs 300 crore.

  • Published On Jul 25, 2023 at 03:00 PM IST

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