Jobaaj Stories
Paints giant Asian Paints published its Q4 and FY23 financials wherein the company reported a 44% growth in quarterly profits.
For the quarter ended in March 2023, the company’s revenues improved by 11.3% as total revenues, from both sales and other services, grew to Rs 8,787.34 crores. The company had a higher tax expense during the quarter due to lower deferred tax benefit. Profit for the quarter came in at Rs 1,258.41, up 44% YoY.
For the year ended in March 2023, the company’s revenues saw significant growth. Total revenues, from both sales and services, grew 18.5% to reach a total of Rs 34,488.59 crores. The company witnessed 14% growth in volumes but international business slumped 3% in the last quarter due to global uncertainty, liquidity issues and a forex crisis.
Under its home decor segment, the Fabrics, Decorative Lighting, UPVC Doors and Windows saw good business, but Kitchen and Bath revenues slumped. Revenues from both businesses fell 21% and 10% respectively. Expenses did not grow as much as the company’s revenues during the year as Total Expenses incurred by the company grew to Rs 29,231 crores, up 16% YoY.
During the year the company had to re-assess the fair value of its subsidiary Causeway Paints Lanka Pvt. Ltd. due to the ongoing economic crisis in Sri Lanka. The company recorded a foreign exchange loss of Rs 24.21 crores due to the devaluation of the Sri Lankan currency & a Rs 24.66 crores impairment loss on its investment in the subsidiary.
Profit for FY23 came in at Rs 4,195.33 crores, up 36% YoY when compared to Rs 3,084.81 crores reported in the corresponding period last year.
The paint company’s Board has recommended a dividend of Rs 21.25 per share for FY23. At the time of reporting, the stock of Asian Paints was trading around Rs 3,160.20 per share.
-Aman Agarwal.
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