Back on Dalal Street, Asian Paints caught up with investors to discuss its December quarter numbers, which overall left investors wishing for more.
By the numbers:
- Asian Paints’ revenue came in at ₹8,549 crore, down 6% YoY, missing expectations by a good ₹300 crores
- Net profit dropped 23.5% YoY to ₹1,128 crore, again below estimates.
- The decorative business grew 1.6% YoY, not cool
Pulse check: paint businesses often serve as a barometer for the economy, as consumer confidence and disposable income typically drive renovations and festive spending. Their weakness is not an encouraging sign, and management concurred.
Big picture: with nearly 55%+ market share in India, Asian Paints is a dominant force in the industry, but has steadily been losing share. Investors haven’t been very happy with the stock, although the earnings did cause a 3% pop.
While we’re on earnings…
Tata Power’s results were a mixed bag, reflecting steady growth but making investors generally nervous, given the massive run up over the past few years.
Revenue rose 5% YoY to ₹15,391 crore, falling short of estimates, while net profit climbed 10.3% to ₹1,187 crore.
Amidst a lot of the positive commentary, the company’s management cited enthusiasm to get into the Small Modular Nuclear Reactor business, as the government slowly opens the market.
