#SALES #GROWTH
Revenue in FY25 declined by 4.5% YoY at โน33,906 cr, impacted by weak consumer demand and slowdown in urban market. Decorative & Industrial paints witnessed value de-growth of ~5% YoY, whereas volume growth was ~3%. Industrial segment outpaced the decorative segment, with superior performance in tier-3 and tier-4 cities. The home dรฉcor segment reported subdued performance driven by ~20% YoY decrease in White Teak due to the impact of BIS (Bureau of Indian Standards) specifications as majority of the inputs are sourced from China. Weatherseal was impacted by the pricing scenario in the B2B (business-to-business) segment. Further, international business was impacted by currency devaluation in Africa. Middle East posted strong double-digit growth, especially markets of UAE.
Revenue in FY25 declined by 4.5% YoY at โน33,906 cr, impacted by weak consumer demand and slowdown in urban market. Decorative & Industrial paints witnessed value de-growth of ~5% YoY, whereas volume growth was ~3%. Industrial segment outpaced the decorative segment, with superior performance in tier-3 and tier-4 cities. The home dรฉcor segment reported subdued performance driven by ~20% YoY decrease in White Teak due to the impact of BIS (Bureau of Indian Standards) specifications as majority of the inputs are sourced from China. Weatherseal was impacted by the pricing scenario in the B2B (business-to-business) segment. Further, international business was impacted by currency devaluation in Africa. Middle East posted strong double-digit growth, especially markets of UAE.
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#PAT #GROWTH
In FY25, PAT was down by ~33% YoY at โน3,569 cr v/s โน5,425 cr in FY24. This included loss of ~โน202 cr towards impairment provision on goodwill on consolidation & tangibles in White Teak. Additional ~โน56 cr was recognised towards forex loss in a subsidiary due to currency devaluation in Ethiopia, impairment loss of ~โน84 cr towards the divestment of Indonesia business and ~โน21 cr towards the acquisition of CauseWay Paints, Sri Lanka. These translated to a total exceptional loss of โน363 cr during the year. PAT was further impacted by higher finance cost and increased depreciation expense. Tax rate for FY25 was 27.3%, owing to deferred tax adjustment and exceptional loss. 5 Year CAGR: 7.8%
In FY25, PAT was down by ~33% YoY at โน3,569 cr v/s โน5,425 cr in FY24. This included loss of ~โน202 cr towards impairment provision on goodwill on consolidation & tangibles in White Teak. Additional ~โน56 cr was recognised towards forex loss in a subsidiary due to currency devaluation in Ethiopia, impairment loss of ~โน84 cr towards the divestment of Indonesia business and ~โน21 cr towards the acquisition of CauseWay Paints, Sri Lanka. These translated to a total exceptional loss of โน363 cr during the year. PAT was further impacted by higher finance cost and increased depreciation expense. Tax rate for FY25 was 27.3%, owing to deferred tax adjustment and exceptional loss. 5 Year CAGR: 7.8%
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#ROCE
In FY25, ROCE declined to 27%. The decline can be attributed to weak operational performance and exceptional item impact. During the year, it added ~9,000 retail touchpoints across the country, taking the total to 1,69,000. It also expanded the Mysuru facility from 3,00,000 KL/per annum to 6,00,000 KL/ per annum.
In FY25, ROCE declined to 27%. The decline can be attributed to weak operational performance and exceptional item impact. During the year, it added ~9,000 retail touchpoints across the country, taking the total to 1,69,000. It also expanded the Mysuru facility from 3,00,000 KL/per annum to 6,00,000 KL/ per annum.
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#SECTOR POTENTIAL
โข The domestic paint industry consisting of the decorative and industrial paint segment is estimated at over ~โน80,000 cr in FY25. The decorative paint segment constitutes 75% and industrial paint segment makes up the balance 25% of the domestic paint market. โข The Indian coatings market is projected to achieve a revenue CAGR of 7.4% over the period 2025โ2027, significantly outpacing the global coatings market, which is expected to grow at a CAGR of 3.9% during the same period. โข 75% of the Indian paint industry is dominated by the organized players and rest by the unorganized players. Increased customer awareness has led to a shift in preference from unorganized to organized players, reducing dealer influence and making it imperative to establish a strong brand image. โข The Indian paint industry, particularly the decorative segment, continued to face headwinds in FY25 due to heightened competition and subdued demand. The organized decorative paint sector recorded negative growth, impacted by intensified competition from both established and new players. Additionally, the year was marked by a slowdown in new construction activity, reduced renovation intensity, and weaker-than-expected B2B demand. Despite these headwinds, recent trends indicate early signs of recovery. โข The Indian paint industry has been witnessing a gradual shift in the preferences of customers from the traditional whitewash to high-quality paints like emulsions and enamel paints, which is providing the basic stability for growth of Indian paint industry. โข Crude oil forming an essential component of raw material for paint companies, any volatility in its price will need to be critically monitored to cushion the impact on profitability. Recently, the prices of crude oil saw a substantial decline. โข The government has applied anti-dumping duty on Rutile (titanium dioxide) originating in or exported from China. โข As per RBI (Reserve Bank of India) bulletin, rural demand is expected to continue the growth momentum and construction activity is poised to increase.
โข The domestic paint industry consisting of the decorative and industrial paint segment is estimated at over ~โน80,000 cr in FY25. The decorative paint segment constitutes 75% and industrial paint segment makes up the balance 25% of the domestic paint market. โข The Indian coatings market is projected to achieve a revenue CAGR of 7.4% over the period 2025โ2027, significantly outpacing the global coatings market, which is expected to grow at a CAGR of 3.9% during the same period. โข 75% of the Indian paint industry is dominated by the organized players and rest by the unorganized players. Increased customer awareness has led to a shift in preference from unorganized to organized players, reducing dealer influence and making it imperative to establish a strong brand image. โข The Indian paint industry, particularly the decorative segment, continued to face headwinds in FY25 due to heightened competition and subdued demand. The organized decorative paint sector recorded negative growth, impacted by intensified competition from both established and new players. Additionally, the year was marked by a slowdown in new construction activity, reduced renovation intensity, and weaker-than-expected B2B demand. Despite these headwinds, recent trends indicate early signs of recovery. โข The Indian paint industry has been witnessing a gradual shift in the preferences of customers from the traditional whitewash to high-quality paints like emulsions and enamel paints, which is providing the basic stability for growth of Indian paint industry. โข Crude oil forming an essential component of raw material for paint companies, any volatility in its price will need to be critically monitored to cushion the impact on profitability. Recently, the prices of crude oil saw a substantial decline. โข The government has applied anti-dumping duty on Rutile (titanium dioxide) originating in or exported from China. โข As per RBI (Reserve Bank of India) bulletin, rural demand is expected to continue the growth momentum and construction activity is poised to increase.
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#FUTURE #OUTLOOK
โข The company is investing towards VAM (vinyl acetate monomer) and VAE (vinyl acetate ethylene emulsion) in Dahej, Gujarat. Capex towards the same is โน3,250 cr. This shall be partially operational by March-April 2026 and fully operational by April 2027. โข A white cement plant is being set up in Fujairah, Dubai with an annual production capacity of ~2.75 lakh tonnes. The plant is expected to be operational by June 2025. โข Towards the greenfield water-based paint manufacturing facility (Madhya Pradesh) with a capacity of 4 lakh kl per annum, the management stated that it has completed land acquisition (~166 acres); the statutory approval process is work in progress and they are targeting completion by CY28. The investment towards this would be ~โน2,000 cr. โข The brownfield expansion in Ankleshwar, Gujarat is ongoing and will increase the plantโs capacity from 1,30,000 kilolitres (KL) in FY25 to 2,50,000 KL per annum. โข On 14th February 2025, Asian Paints International Private Limited (APIPL), Singapore, a wholly-owned subsidiary, along with PTAPI (PT Asian Paints Indonesia) and PTAPCI (PT Asian Paints Color Indonesia), entered a share purchase agreement with Berger Paints Singapore Pte Limited, Singapore, for the sale of 100% stake in PTAPI and PTAPCI for consideration of SGD 7.5 million (~โน48 cr). The loss arising from the divestment was recorded as exceptional item in Q4 FY25. โข The company aims to be in the top 2 player in the international markets, including Bangladesh and Sri Lanka. โข Going forward, the B2B segment is expected to increase coupled with uptick in mid-luxury housing.
โข The company is investing towards VAM (vinyl acetate monomer) and VAE (vinyl acetate ethylene emulsion) in Dahej, Gujarat. Capex towards the same is โน3,250 cr. This shall be partially operational by March-April 2026 and fully operational by April 2027. โข A white cement plant is being set up in Fujairah, Dubai with an annual production capacity of ~2.75 lakh tonnes. The plant is expected to be operational by June 2025. โข Towards the greenfield water-based paint manufacturing facility (Madhya Pradesh) with a capacity of 4 lakh kl per annum, the management stated that it has completed land acquisition (~166 acres); the statutory approval process is work in progress and they are targeting completion by CY28. The investment towards this would be ~โน2,000 cr. โข The brownfield expansion in Ankleshwar, Gujarat is ongoing and will increase the plantโs capacity from 1,30,000 kilolitres (KL) in FY25 to 2,50,000 KL per annum. โข On 14th February 2025, Asian Paints International Private Limited (APIPL), Singapore, a wholly-owned subsidiary, along with PTAPI (PT Asian Paints Indonesia) and PTAPCI (PT Asian Paints Color Indonesia), entered a share purchase agreement with Berger Paints Singapore Pte Limited, Singapore, for the sale of 100% stake in PTAPI and PTAPCI for consideration of SGD 7.5 million (~โน48 cr). The loss arising from the divestment was recorded as exceptional item in Q4 FY25. โข The company aims to be in the top 2 player in the international markets, including Bangladesh and Sri Lanka. โข Going forward, the B2B segment is expected to increase coupled with uptick in mid-luxury housing.
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Asian Paints 2200-2400
Expected level 3000
Support 1900
Expected level 3000
Support 1900
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Sunteck Realty Ltd Company Details Report
Sunteck Realty Ltd is one of the fastest growing real estate development companies of the country based in Mumbai. SRL has its own in-house project management team and strategic tie-ups with domestic/international contractors, architects, engineers and brand partners. The company focuses on designing, developing, and managing commercial and premium residentials. The company focuses on a city centric development well spread-out across Mumbai Metropolitan Region (MMR). It has acquired more than 50 million sq ft with a Gross Developmental Value (GDV) of โน39,370 cr. The company has entered into various Joint development agreement (JDA) projects which has helped the company better manage its financials in a disciplined manner and remain asset light. The company has 50:50 JV with Piramal Realty called Piramal Sunteck Realty Pvt Ltd which was formed in 2007. Sunteck offers 6 brands under the name of Signature (Uber Luxury Residencies raging from โน30 cr - โน40 cr), Signia (Uber Luxury Residencies raging from โน5 cr - โน20 cr), Sunteck City, Sunteck Beach Residences and Sunteck Sky Park (Upper - Mid Income Large mixed-use development between โน1 cr - โน3 cr), Sunteck World (Lower Mid Income between โน25 lac - โน1.25 cr) & Sunteck (Commercial) which allows them to be present across pricing spectrum.
It is focusing on middle income and aspirational group where they intend to offer well designed and quality apartments the pre-sales mix also reflects. The company follows project completion method of revenue recognition as per IND AS 115 where presales and collections are based on bookings and customer advances. Presales convert to revenue at project completion. The collections for FY25 were โน1,255 cr of which โน421 cr came from Uber luxury, โน294 cr from Premium luxury, โน435 cr from Aspirational luxury and others at โน105 cr.
Sunteck Realty Ltd is one of the fastest growing real estate development companies of the country based in Mumbai. SRL has its own in-house project management team and strategic tie-ups with domestic/international contractors, architects, engineers and brand partners. The company focuses on designing, developing, and managing commercial and premium residentials. The company focuses on a city centric development well spread-out across Mumbai Metropolitan Region (MMR). It has acquired more than 50 million sq ft with a Gross Developmental Value (GDV) of โน39,370 cr. The company has entered into various Joint development agreement (JDA) projects which has helped the company better manage its financials in a disciplined manner and remain asset light. The company has 50:50 JV with Piramal Realty called Piramal Sunteck Realty Pvt Ltd which was formed in 2007. Sunteck offers 6 brands under the name of Signature (Uber Luxury Residencies raging from โน30 cr - โน40 cr), Signia (Uber Luxury Residencies raging from โน5 cr - โน20 cr), Sunteck City, Sunteck Beach Residences and Sunteck Sky Park (Upper - Mid Income Large mixed-use development between โน1 cr - โน3 cr), Sunteck World (Lower Mid Income between โน25 lac - โน1.25 cr) & Sunteck (Commercial) which allows them to be present across pricing spectrum.
It is focusing on middle income and aspirational group where they intend to offer well designed and quality apartments the pre-sales mix also reflects. The company follows project completion method of revenue recognition as per IND AS 115 where presales and collections are based on bookings and customer advances. Presales convert to revenue at project completion. The collections for FY25 were โน1,255 cr of which โน421 cr came from Uber luxury, โน294 cr from Premium luxury, โน435 cr from Aspirational luxury and others at โน105 cr.
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#SALES #GROWTH
In FY25, the company registered a revenue of โน853 cr backed by revenue recognition of Sunteck World projects and BKC (Bombay Kurla Complex) projects. They have launched a new phase at their Naigaon project in Sunteck UltraWorld with a potential GDV (gross developmental value) of โน600 crore. The launch price is ~โน10,000 per sq. ft. The total business development GDV (gross developmental value) for the company stands at ~โน40,000 crore, which has more than doubled in the last 2 years. In FY24, the Uber Luxury project at BKC generated sales of โน245 cr worth of stock v/s โน200 cr of stock sold together in last 3 years. Pre-sales for the year was lower than their guidance of ~โน2,000 cr due to delay in launch of new tower at Mira Road. The revenue registered during the year was โน565 cr. The company recognized revenue to the tune of โน284 cr from Sunteck Maxxworld at Naigaon with project level margin of 30%.
In FY25, the company registered a revenue of โน853 cr backed by revenue recognition of Sunteck World projects and BKC (Bombay Kurla Complex) projects. They have launched a new phase at their Naigaon project in Sunteck UltraWorld with a potential GDV (gross developmental value) of โน600 crore. The launch price is ~โน10,000 per sq. ft. The total business development GDV (gross developmental value) for the company stands at ~โน40,000 crore, which has more than doubled in the last 2 years. In FY24, the Uber Luxury project at BKC generated sales of โน245 cr worth of stock v/s โน200 cr of stock sold together in last 3 years. Pre-sales for the year was lower than their guidance of ~โน2,000 cr due to delay in launch of new tower at Mira Road. The revenue registered during the year was โน565 cr. The company recognized revenue to the tune of โน284 cr from Sunteck Maxxworld at Naigaon with project level margin of 30%.
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#EBITDA #GROWTH
In FY25, the EBITDA was โน185.8 cr. In FY24, the company reported an EBITDA of โน117.3 cr. Cost of construction and development contributes the highest of the total expense which majorly includes Land and development rights, contracting costs, Liaisoning and approval costs, design and consultancy fees. Whereas in case of other expenses, Advertisement and brokerage, legal and professional fees, rates and taxes and facility management are the major contributors.
In FY25, the EBITDA was โน185.8 cr. In FY24, the company reported an EBITDA of โน117.3 cr. Cost of construction and development contributes the highest of the total expense which majorly includes Land and development rights, contracting costs, Liaisoning and approval costs, design and consultancy fees. Whereas in case of other expenses, Advertisement and brokerage, legal and professional fees, rates and taxes and facility management are the major contributors.
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#EBITDA #MARGIN
The company has project EBITDA margin at ~35% and 15%-20% in the affordable segment which presently stands at 25%-30%. Because of following project completion method, expenses are accounted in the current year itself irrespective of the project getting completed or not. The EBITDA margin for FY25 was 21.8%.
The company has project EBITDA margin at ~35% and 15%-20% in the affordable segment which presently stands at 25%-30%. Because of following project completion method, expenses are accounted in the current year itself irrespective of the project getting completed or not. The EBITDA margin for FY25 was 21.8%.
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