Asian Paints Shares Drop Close To 4% After Q4 Revenue, Profit Fail To Meet Estimates

Asian Paints posted a consolidated net profit of ₹1,275.3 crore for the March quarter, marking a 1.3% rise from ₹1,258.41 crore a year ago.

What Happened: The country’s largest home decor player announced that its total revenue stood at ₹8,730 crore, a decrease of 0.64% from ₹8,787 crore last year. Both revenue and profit fell short of estimates.

The company recorded EBITDA of ₹1,692 crore for the quarter, down 9.3%. EBITDA margins declined by 170 basis points year-over-year to 21.1%.

The Board recommended a final dividend of ₹28.15 per share, in addition to the interim dividend of ₹5.15 per share declared in October 2023. The total dividend for FY'24 amounts to ₹33.30 per share, with a payout ratio of 60%.

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In the fiscal year, the company’s automotive coatings business surpassed the ₹2,000 crore revenue mark. However, while the Decorative Business (India) saw volume growth of 10%, its revenue declined by 1.8% in Q4 FY'24. The revenue from the decorative business suffered due to weak demand and downtrading in Q4FY24, compounded by price cuts across categories.

Price Action: Asian Paints shares were trading 3.62% lower at ₹2,740.45, with the stock plunging right after the company posted its quarterly earnings.

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