Asian Paints, the country's second-largest paint company, on Tuesday, reported a 161.5 percent spike in consolidated net profit at Rs 574.3 crore during the quarter ended June 30, 2021.
In the corresponding quarter last year, the Mumbai-headquartered company posted a net profit of Rs 219.6 crore. CNBC-TV18 Poll had predicted a profit of Rs 721 crore for the quarter under review.
The company’s revenue from operations during Q1FY22 rose 91.1 percent to Rs 5,585.4 crore from Rs 2,922.7 crore, YoY.
"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," said Amit Syngle, managing director and CEO of Asian Paints.
During the quarter, the company’s paints business revenue grew 90.4 percent at Rs 5,464.7 crore against Rs 2,870.6 crore, while the segment’s EBIT increased to Rs 809.1 crore as against Rs 371.6 crore, YoY. Paints business EBIT margin was improved to 14.8 percent from 12.9 percent, YoY.
At the operating level, EBITDA increased 88.7 percent to Rs 913.6 crore from Rs 484.3 crore, while EBITDA margin weakened by 20 bps to 16.4 percent from 16.6 percent, YoY.
"Steep inflation in raw material prices in the last quarter of the previous financial year and again in this quarter saw gross margins impacted across all businesses despite the price increases taken to mitigate this pressure to an extent," Syngle added.
The shares of Asian Paints hit a fresh 52-week high of Rs 3,178.00 apiece on the BSE during intraday deals on Tuesday after reporting strong Q1 results. The stock ended 6.04 percent higher at Rs 3,159.20 apiece on Tuesday.