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Asian Paints Q1FY21 net profit falls 67.3%; revenue drops 42.7%

Asian Paints Q1FY21 net profit falls 67.3%; revenue drops 42.7%

Asian Paints Q1FY21 net profit falls 67.3%; revenue drops 42.7%
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By Ankit Gohel  Jul 24, 2020 4:40:18 PM IST (Published)

Asian Paints reported a 67.3 percent on-year fall in net profit to Rs 219.6 crore for the first quarter of fiscal 2021, but beat analysts estimates. The company had posted a net profit of Rs 672.1 crore in the same period last year. CNBC-TV18 analysts' poll had an estimated net profit of Rs 27 crore.

Asian Paints reported a 67.3 percent year-on-year fall in net profit to Rs 219.6 crore for the first quarter of fiscal 2021 but beat analysts estimates. The company had posted a net profit of Rs 672.1 crore in the same period last year. CNBC-TV18 analysts' poll had an estimated net profit of Rs 27 crore.

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Revenue from operations during Q1FY21 declined 42.7 percent to Rs 2,922.6 crore as compared to Rs 5,104 crore in the year-ago period. The revenue beat analysts' estimates of Rs 2,050 crore.
EBITDA fell 58.2 percent to Rs 484.2 crore from Rs 1,158 crore while EBITDA margin contracted by 610 bps to 16.6 percent from 22.7 percent, YoY.
“After a complete washout in April’20 due to extended Lockdown, the Decorative business segment witnessed improving business conditions over the next two months. Thus, while the quarter ended in negative territory, the business registered a healthy double-digit volume growth in the month of June’20 to end the quarter on a promising note," said Amit Syngle, Managing Director & CEO of Asian Paints Limited.
Paints business' revenue dropped 42.6 percent to Rs 2,870.57 crore from Rs 4,996.88 crore, YoY. The segment's EBIT declined 65 percent to 371.58 crore while EBIT margin bell by 840 bps to 12.9 percent, YoY.
"Profitability across businesses was well supported by the softer raw material prices and the various cost control measures being actively pursued by the Management”, Syngle said.
The other business segments in India including the two industrial coatings business and both the segments in the Home Improvement category also witnessed improving trends in June’20, albeit at a lower pace, he added.
The International business portfolio did well supported by favourable operating conditions in markets in the Middle East and Africa through key markets of Nepal and Bangladesh in Asia were impacted by the pandemic lockdowns.
On Friday, shares of Asian Paints ended 0.66 percent lower at Rs 1,716.00 on the BSE.
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