Asian Paints Limited
Q4 VALUE GROWTH:
Q4 value growth: -1.8% YoY
FY24 VOLUME GROWTH:
FY24 volume growth: 9% YoY
CONSOLIDATED PAT: +32%
Consolidated PAT: +32% YoY
GROSS MARGIN IMPROVEMENT:
Gross margin improvement: +220 basis points YoY
stockrabit simplifies the management commentary to help you better understand the industry and sentiments
Financial Performance
This quarter was a little bit slow from the point of view of overall value delivery, but we have still seen very strong double-digit volume growth.
Despite a slow quarter in terms of revenue, the company maintained strong volume growth, indicating resilience in demand.
Overall, for the financial year, the value growth was closer to about 3% with a volume growth of 9%.
The company achieved solid growth in volume despite a slight decline in value, reflecting pricing pressures.
The gross margins have in fact gone up in terms of what you see from the last quarter and even from the point of view of last year.
Improvement in gross margins indicates effective cost management and sourcing efficiencies despite challenges.
Business Operations
The Industrial business has been doing very strong, and both the Industrial JVs have been really performing very strongly.
The industrial segment is a key growth driver, showcasing the company's diversification and strength in B2B operations.
We feel that the volume trajectory gives us a boost, more from the point of view of saying, that is something which is a strong sustainable business.
The focus on volume growth reinforces the company's competitive position and sustainability in the market.
Growth Initiatives
We launched this product in January 2024, and we are seeing volumes really building up with strong growth.
The introduction of a new product aimed at the economy segment is expected to drive growth, particularly in rural markets.
We are talking of 4,00,000 KL/annum capacity, which again, would be one of the biggest automated capacities globally.
The planned greenfield venture indicates significant investment in capacity expansion, positioning the company for future growth.
Market Dynamics
The Premium market has been a little bit slow for us and we have seen that there is possibly some kind of downtrading which is happening especially in rural centres.
The company is facing challenges in the premium segment, indicating competitive pressures and changing consumer preferences.
We find that for us, the urban centres drew a tad faster than the rural markets.
This observation highlights shifting consumer behavior and market dynamics, with urban areas showing stronger growth.
Future Outlook
We are still positive on the overall quarter and looking at really aiming for still strong double-digit volume growth for the quarter going forward.
Management expresses optimism for future growth, particularly in volume, despite recent challenges.
There has been a little bit of this blip because of elections, the heat wave and so on and so forth.
Management acknowledges external challenges impacting performance, indicating a cautious approach to short-term forecasts.