About the company:
Asian Paints is India’s largest and one of the leading global paint companies, founded in 1942. It operates in the decorative and industrial paints segments, offering a wide range of products for residential, commercial, and industrial applications. The company has a strong presence in over 60 countries and operates more than 25 manufacturing plants globally. Apart from paints, Asian Paints has expanded into home décor, waterproofing solutions, adhesives, and sanitization products. It is known for its innovation, strong distribution network, and customer-centric approach, making it a market leader in the Indian paint industry.
Key Business Insights
Demand Trends:
Weak festive season impacted volumes.
Urban centers showed slower growth; rural demand held up better.
Industrial and B2B segments performed better, particularly in automotive and protective coatings.
Growth Segments:
B2B Business: Institutional projects and government spending contributed positively.
New Products: Contributed 12% of Q3 revenues, focusing on premium/luxury segments.
Home Décor Business: Continued expansion with 64 Beautiful Homes stores; now 4.5% of decorative revenue.
Market Strategy & Competitive Landscape:
Price deflation observed in Q3, with an earlier 1.2% price hike from Q2 carrying forward.
Facing competitive pressures from new entrants but maintaining leadership through innovation and brand positioning.
Expanding mechanization and automation in painting services to improve efficiency and drive demand.
Global Business Performance:
International revenue growth: 5% in INR terms, 17.1% in constant currency.
Middle East: Strong growth, led by UAE.
Africa & South Pacific: Impacted by currency devaluation in Egypt and Ethiopia.
Outlook for Q4 FY25 & Beyond
Expecting continued pressure in urban demand but optimistic about rural recovery.
Government spending and industrial demand expected to support growth.
Continued focus on premiumization, cost optimization, and market expansion.
Maintaining EBITDA margin guidance of 18-20%, with focus on efficiency and innovation.
Here’s the updated financial performance of Asian Paints over the last three quarters (Q3, Q2, and Q1 of FY25):
| Metric | Q3 FY25 | Q2 FY25 | Q1 FY25 |
|---|---|---|---|
| Revenue (₹ Cr.) | 8,522 | 8,731 | 8,215 |
| EBITDA (₹ Cr.) | 1,766 | 1,813 | 1,725 |
| EBITDA Margin (%) | 20.7% | 20.8% | 21.0% |
| Net Profit (₹ Cr.) | 3,601 | 3,750 | 3,450 |
| Gross Margin (%) | 43.2% | 41.1% | 42.9% |
| Decorative Paints Growth | -7.8% | -5.5% | -5.2% |
| Industrial & B2B Growth | +1.7% | +3.2% | +2.9% |
Recent updates:
Highlights from last concall:
Financial Performance
Revenue: ₹8,522 crore (-7.5% YoY)
EBITDA Margin: 20.7% (-40 bps YoY)
Net Profit: ₹3,601 crore (-6.1% YoY)
Gross Margin: 43.2% (vs. 44.2% in Q3 FY24)
Decline in Decorative Segment: Weak consumer demand, urban slowdown, and downtrading led to lower value growth.