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News Topical, Digital Desk : Paint giant Asian Paints has released its third quarter (Q3) results, which are overall mixed. Some figures are disappointing, while others are strong. Talking about profits, first of all, the company's consolidated profit has declined from ₹1,128 crore to ₹1,060 crore on a year-on-year basis. This means that the profit has declined compared to the previous year. Furthermore, this figure was less than the market estimate of ₹1,250 crore, which has come as a bit of a shock to investors. However, the company has performed better in terms of revenue. Asian Paints' consolidated income has increased from ₹8,549.4 crore to ₹8,867 crore. This means that the company's sales have increased on a year-on-year basis, but it has been less than the market estimate of ₹9,100 crore.
Improvement seen in EBITDA
Talking about the operating performance of the company, the EBITDA of the company has increased from ₹1,637 crore to ₹1,781 crore, which is a positive sign. Along with this, the EBITDA margin has increased from 19.1% to 20%. This is better than the market estimate of 19.5%, which clearly shows that the company has maintained a good control on costs and has shown strength at the operating level.
Increase seen in Volume Growth The volume growth i.e. increase in the quantity of paint sales was 7.9%, whereas the market was expecting around 12%. This indicates that the demand is not that strong right now, especially in some major markets.
Compared to market estimates Profit: ₹1,060 crore (estimated ₹1,250 crore – much lower) Revenue: ₹8,867 crore (estimated ₹9,100 crore – slightly lower) EBITDA: ₹1,781 crore (estimated ₹1,805 crore – slightly lower) EBITDA margin: 20% (estimated 19.5% – better) Volume growth: 7.9% (estimated 12% – much lower).
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