Asian paints records Q1 profit of around Rs 574.3 crore

Asian Paints affirmed that its June quarter net profit doubled to Rs 574.3 crore against Rs 219.6 crore year-on-year (YoY). 

On July 20, Asian Paints affirmed that its June quarter net profit doubled to Rs 574.3 crore against Rs 219.6 crore year-on-year (YoY).

The profit figure of the company witnessed a rise owing to the low base of the previous year. However, the profit figure was below the market expectation. CNBC-TV 18 polls of analysts assumed a profit of Rs 721 crore for the quarter.

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As per reports, the company’s revenue increased by 91.1 percent YoY to Rs 5,585.4 crore against Rs 2,922.7 crore in Q1FY21. Its EBITDA surged by 88.7 percent to Rs 913.6 crore against Rs 484.3 crore YoY. The EBITDA margin stood at 16.4 percent against 16.6 percent YoY.

Its paints business revenue increased by 90.4 percent to Rs 5,464.7 against Rs 2,870.6 crore YoY. The EBIT of this business reached Rs 809.1 crore against Rs 371.6 crore YoY. The EBIT margin of the segment came at 14.8 percent against 12.9 percent YoY.

Managing director and CEO of Asian Paints, Amit Syngle stated, “The domestic decorative business more than doubled its volume and delivered stellar revenues over the lower base of last year which had suffered from the first nationwide lockdown. The business registered strong compounded average growths in value and volume in comparison with  Q1FY20 which was a normal quarter, indicative of a strong consistent trajectory.”

He further added that there has been a resilient performance across all businesses despite the challenges posed by the second wave of COVID  across markets that disrupted business continuity from the second fortnight of April 2021. Syngle affirmed that the company recorded strong growth in April 2021 and a robust resounding rebound in June 2021, after May 2021 which has marked an impact in a big way.

He notified that the steep inflation in the prices of raw material in the past quarter of the previous financial year and again this quarter witnessed gross margins impact across businesses despite the increase in prices which were taken to mitigate the pressure to an extent.

“We continue to strongly engage with all our stakeholders and are confident of our organization’s capability to maximize on the expected uptick in the business condition as we move forward”, Syngle added.