consolidated net profit for the December quarter rose 5.6% on year to Rs 1,073 crore, while revenue increased by a moderate 1.3% to Rs 8,636.74 crore.
The profit and sales were lower than the ET Now poll of Rs 1,156 crore and Rs 9,480 crore, respectively.
Consolidated operating profit increased by 4.5% on year to Rs 1,611.43 crore, while margin expanded 57 basis points to 18.66%.
The domestic decorative business saw flat growth both in volume and value terms in the quarter, as the base quarter of last year saw a high increase in prices.
“The extended monsoon in October also affected retailing in the peak festival season, but demand picked up in November and December, leading to a double-digit growth for the decorative business in December,” the company said in a release.
Operating margins improved both YoY and sequentially, driven by deflation in some of the raw material prices as well as continued operational efficiencies across businesses, the company said.
The industrial paints business did well during the quarter, led by strong growth in the automobile and general industrial segments. The international business was a mixed bag with good growth in the Middle East and Africa, while the South Asia market, especially Sri Lanka and Bangladesh, was severely impacted by the adverse forex and macroeconomic conditions, said Amit Syngle, MD & CEO of the company.
The home decor market continued its expansion foray but witnessed some slowdown in the bath and kitchen business in the last quarter.
“We continue to work diligently on multiple strategic initiatives to further strengthen our business model and deliver sustained value to all our stakeholders,” Syngle said.
International sales increased 2.1% in the quarter to Rs 778.82 crore. In constant currency terms, sales increased by 13.4%. The growth in reported sales was lower than the increase in sales in constant currency on account of currency depreciation in key markets such as Sri Lanka, Egypt, Bangladesh, and Ethiopia, the company said.
In the bath fittings segment, sales decreased by 11% to Rs 89.84 crore, and in the kitchen business, sales dropped by 7% to Rs 100.68 crore.
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