New Delhi: Asian Paints reported almost flat net profit growth for the quarter ended 31 March at ₹874 crore, hit by high raw material prices. Consolidated sales rose 21% to ₹7,890 crore in the same period.
On Tuesday, Asian Paints shares were up nearly 3% in noon deals at ₹3,090.85 apiece on NSE.
The reduction in profit was also due to ₹53.73 crore exceptional loss from subsidy delay by state governments and ₹48 crore loss from Sri Lanka business.
The company’s board recommended a final dividend of ₹15.50 per equity share for the financial year ended 31 March.
“It was yet another quarter of solid and strong double digit value growth across all businesses, despite the prevailing uncertainty around Covid, macro-economic challenges and heightened geo-political tensions,” Amit Syngle, Managing Director & CEO said.
He further said the International business managed to deliver a double-digit revenue growth for the quarter despite severe challenges in key markets.
The industrial coatings business closed the quarter with another round of robust double digit revenue growth with continued momentum in the protective coatings segment, while the scale-up in the Home Décor business continued unhindered, making further inroads through network expansion and introduction of unique value propositions for its customers, he added.
At the operating level, EBITDA for the quarter increased by 9.5 percent to Rs 1,443 crore compared to same period last fiscal. However, the margin was down by 150 bps year-on-year to 18.3 percent in the quarter ended March 2022, hit by higher input cost but the same sequentially improved by 22 bps.
“We continued to improve operating margins on a sequential basis which was a result of some calibrated price increases, driving the premium and luxury product growths, coupled with some strong work on driving operational efficiencies across businesses,” Amit Syngle said.