Segment-wise, sales in the international business increased 10% to Rs 846 crore from Rs 769 crore. In constant currency terms, sales rose 11%. Profit before exceptional items and tax (PBEIT) stood at Rs 76 crore. Growth in this segment was led by key markets in South Asia, the Middle East, and Africa.
Within the home décor business, bath fittings sales declined 5% to Rs 79 crore, with a PBT loss of Rs 4 crore. Sales in the kitchen business fell 7% to Rs 98 crore.
“This was a quarter of focused innovation, good execution and regionalisation of initiatives, resulting in a strong performance,” said Amit Syngle, MD and CEO, Asian Paints.
The company said it saw an improvement in domestic decorative business with a double-digit volume growth of 10.9% and a 6% increase in value, despite the challenges posed by an extensive and prolonged monsoon.
This growth was driven by the ability to generate demand across urban and rural areas through various regional activations and intense marketing /brand-building measures.”While the home décor business continues to navigate headwinds, our progress with Beautiful Homes stores is promising,” the company said in a filing.Asian Paints however, cautioned that the business landscape remains challenging and highly dynamic. “However, we remain steadfast in our commitment to strengthening our brand saliency and driving innovation to deliver sustained performance and create value for all our stakeholders,” it said.
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Asian Paints shares have seen decent traction on the Street over the last six months, rising 20%. It is a significant outperformance over Nifty’s gains of nearly 8% while Sensex’s 6% uptick.
The stock is currently trading above its 50-day and 200-day simple moving averages of Rs 2,476 and Rs 2,374, respectively.
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