Asian Paints Q4 Report: Revenue Setback and Valuation Insights
Investing.com | Author Aayush Khanna
Published May 10, 2024 12:14AM ET
In the latest quarterly report, Asian Paints (NS:ASPN), one of India's leading paint companies, faced a notable setback in its standalone revenue, which dropped by 1.9% compared to the same period last year. This decline represents a significant departure from its usual growth trajectory. While the volume of decorative paints saw a promising 10% year-on-year growth, the overall revenue was dragged down by a double-digit decrease in realization. The company attributed this sharp decline in realization to two main factors: a sluggish demand environment prompting consumers to opt for lower-priced options, and previously implemented price cuts.
Looking ahead, Asian Paints anticipates these challenges persisting into the first half of the fiscal year 2025. On the consolidated front, the picture isn't much brighter, with revenue slipping by 0.6% year-on-year in the fourth quarter of fiscal year 2024. Additionally, the company's earnings before interest and taxes (EBIT) took an 11% hit compared to the previous year as margins began to moderate. Consolidated EBITDA also saw a decline of 9% year-on-year, with EBITDA margins shrinking by 180 basis points due to rises in staff and other expenses.
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Written By: Investing.com
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