Asianpaint Ltd — Q1 FY24

Asian Paints reported a strong Q1 FY24 with 10% volume growth on a high base, driven by broad-based demand across geographies and segments. Revenue grew 7% YoY (standalone), aided by double-digit volume growth and a healthy product mix. Gross margins expanded 550 bps YoY to 43.4%, benefiting from raw material deflation and operational efficiencies. The industrial business was a standout with 13% top-line growth, while international operations were mixed due to currency devaluation in Nepal and Bangladesh. Management remains optimistic about the festive season and rural recovery, but flagged potential input cost inflation from rising crude prices. Key risk: sustained weakness in luxury segment and international markets could temper overall growth.