Asian Paints Ltd’s shares went down by 0.22 per cent after the company announced the revenue for the period ending on June 30, 2023, amounted to ₹9,182.31 crore, compared to ₹8,606.94 crore for the same period in the previous year. This represents a 7.78 per cent increase in revenue.
Furthermore, the profit for the fiscal year ending on June 30, 2023, was 1,574.84 crore, compared to 1,036.03 crore for the same period in the previous year. This represents a 52 per cent increase in profit.
According to ICICI Securities’ analysis, the company’s Q1 FY24 results reveal that volume growth exceeded value growth, indicating higher sales of low-value products. While the economy and premium segments performed well, the luxury segment reported weak numbers. On the positive side, the B2B portfolio, with relatively lower realisations and margins, performed well during the quarter.
The company experienced a strong recovery in Industrial paints, attributed to the post-recovery in Industrial capex and infrastructure spending. Additionally, the Automotive sector’s recovery led to higher revenue from automotive paints. Alongside demand from the real estate sector, the company witnessed healthy growth from Government projects and private capex initiatives.
The shares went down by 0.22 per cent to ₹3,364 at 02:00 pm on BSE.