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Highlights
- Sales over the Year and quarter: The company’s sales declined by -2.32 % over the year, substantial increase in net sales/revenue by 2.74 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -15.28 %, Marginal decrease of -9.18% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for Asian Paints Ltd.. Profit dropped by -24.64 % Year to Year, Asian Paints Ltd.’s profitability dropped by -6.94 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -24.55 % Year to Year. EPS decreased by -6.94 % in previous quarter. Analysis needed for shareholder value.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 9182.31 Cr | Rs. 8730.76 Cr | Rs. 8969.73 Cr | + 2.74 % | -2.32 % |
Expenses | Rs. 7061.02 Cr | Rs. 7039.39 Cr | Rs. 7275.96 Cr | + 3.36 % | + 3.04 % |
Operating Profit | Rs. 2121.29 Cr | Rs. 1691.37 Cr | Rs. 1693.77 Cr | + 0.14 % | -20.15 % |
OPM % | 23.1 % | 19.37 % | 18.88 % | -0.49 % | -4.22 % |
Other Income | Rs. 227.74 Cr | Rs. 212.43 Cr | Rs. 192.93 Cr | -9.18 % | -15.28 % |
Interest | Rs. 45.75 Cr | Rs. 54.1 Cr | Rs. 55.38 Cr | + 2.37 % | + 21.05 % |
Depreciation | Rs. 198.32 Cr | Rs. 225.61 Cr | Rs. 227.7 Cr | + 0.93 % | + 14.81 % |
Profit before tax | Rs. 2104.96 Cr | Rs. 1624.09 Cr | Rs. 1603.62 Cr | -1.26 % | -23.82 % |
Tax % | 25.56 % | 21.82 % | 26.6 % | + 4.78 % | + 1.04 % |
Net Profit | Rs. 1574.84 Cr | Rs. 1275.3 Cr | Rs. 1186.79 Cr | -6.94 % | -24.64 % |
EPS in Rs | Rs. 16.17 | Rs. 13.1 | Rs. 12.2 | -6.87 % | -24.55 % |
Today, we’re looking at Asian Paints Ltd.’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -2.32 %. However, it did see a marginal increase of 2.74 % from the previous quarter. Expenses ticked up slightly by 3.36 % quarter-on-quarter, aligning with the annual rise of 3.04 %. Operating profit, while down -20.15 % compared to last year, faced a quarter-on-quarter increase of 0.14 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -4.22 %, but a shrinkage of -0.49 % sequentially. Other income fell by -9.18 % compared to the last quarter, despite an annual decline of -15.28 %. Interest expenses surged remarkably by 2.37 % from the previous quarter, yet the year-over-year increase remains at a moderate 21.05 %. Depreciation costs climbed by 0.93 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 14.81 %. Profit before tax declined annually by -23.82 % but saw a reduction from the preceding quarter by -1.26 %.
Tax expenses as a percentage of profits increased slightly by 1.04 % compared to last year, with a more notable quarter-on-quarter increase of 4.78 %. Net profit fell by -24.64 % year-on-year but witnessed a -6.94 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -24.55 % but a quarterly fall of -6.87 %. In summary, Asian Paints Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
---|---|---|---|---|---|
Sales | Rs. 9182.31 Cr | Rs. 8730.76 Cr | Rs. 8969.73 Cr | + 2.74 % | -2.32 % |
Expenses | Rs. 7061.02 Cr | Rs. 7039.39 Cr | Rs. 7275.96 Cr | + 3.36 % | + 3.04 % |
Operating Profit | Rs. 2121.29 Cr | Rs. 1691.37 Cr | Rs. 1693.77 Cr | + 0.14 % | -20.15 % |
Net Profit | Rs. 1574.84 Cr | Rs. 1275.3 Cr | Rs. 1186.79 Cr | -6.94 % | -24.64 % |
EPS in Rs | Rs. 16.17 | Rs. 13.1 | Rs. 12.2 | -6.87 % | -24.55 % |
In reviewing Asian Paints Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -2.32 % year-on-year, however, there was a minor increase of 2.74 % from the previous quarter. Expenses rose by 3.04 % compared to the previous year, with a 3.36 % increase quarter-on-quarter. Operating Profit dropped by -20.15 % annually, and saw a 0.14 % increase from the last quarter.
Net Profit showed yearly decrease of -24.64 %, and experienced a -6.94 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -24.55 % annually, however dipped by -6.87 % compared to the last quarter. In essence, while Asian Paints Ltd. faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.