Asian Paints on May 10 has reported half a percent year-on-year growth in consolidated profit at Rs 874 crore for the quarter ended March 2022, as higher input costs put pressure on operating profit margin. Exceptional loss of Rs 115 crore also hit the profit growth for the quarter. The CNBC-TV18 poll estimates for bottomline was at Rs 913 crore.
The profit in corresponding period last fiscal was Rs 870 crore.
Revenue from operations grew by 18.7 percent to Rs 7,893 crore compared to year-ago period, with domestic decorative business registering 8 percent volume growth. Topline was slightly ahead of CNBC-TV18 estimates which was pegged it at Rs 1,400 crore for the quarter.
“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.
Asian Paints reported an exceptional loss of Rs 115.70 crore for the March 2022 quarter which included expected credit loss of Rs 53.73 crore towards subsidy receivable for earlier years, and exchange loss of Rs 48.50 crore due to currency devaluation post economic crisis in Sri Lanka.
Also, the Group has recognized an impairment loss of Rs 13.47 crore after an assessment of the fair value of investment made in Causeway Paints, for which it has taken into account the past business performance, prevailing business conditions and revised expectations of the future performance considering ongoing economic crisis in Sri Lanka, said the paint company in its BSE filing.
The final dividend announced by the company is Rs 15.50 per share for FY22, in addition to dividend of Rs 3.65 per share in October 2021.
The stock was trading at Rs 3,083.95, up 2.47 percent on the BSE at 14:38 hours IST.
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