Earnings

Asian Paints Q2 beats estimates; net profit rises 1% to Rs 851 crore and margin improves

Updated : October 22, 2020 05:02 PM IST

Revenue during the quarter rose 5.9 percent to Rs 5,350.2 crore from Rs 5,050.7 crore, YoY.

The company's decorative business volume growth comes in double digit as against poll of 7-8 percent growth.

Asian Paints reported a 1.2 percent rise in Q2FY21 net profit at Rs 851.9 crore as against Rs 842 crore in the same period last year. Net profit beat CNBC-TV18 analysts' poll estimates of Rs 700 crore.

Further, and comparing year on year, revenue during the quarter rose 5.9 percent to Rs 5,350.2 crore from Rs 5,050.7 crore. The EBITDA increased 32.5 percent to Rs 1,265 crore from Rs 954.8 crore and EBITDA margin expanded by 470 bps to 23.6 percent from 18.9 percent.

"Profitability across businesses was well supported by a better product mix, stable raw material prices, favourable foreign exchange rate and the large number of cost optimization measures put in place by the Management," said Amit Syngle, Managing Director & CEO, Asian Paints Limited.

Asian Paints Q2 numbers beat CNBC-TV18 estimates on all fronts.

The company's decorative business volume growth comes in double-digit as against poll of 7-8 percent growth.

“All the business segments continued to witness improving demand conditions on a progressive basis during the second quarter of this financial year. The Decorative business segment registered good volume growths for each of the months and therefore a healthy double-digit volume growth for the quarter with demand picking up across regions," Syngle added.

The other business segments in India including the two industrial coatings business and both the segments in the Home Improvement category also experienced improving trends in line with the phased-out re-opening of the economy, he added.

The International business portfolio did well supported by favourable market conditions in the Middle East, Africa and Asia, with the exception of Nepal, which continued to witness challenging business conditions due to the pandemic, Syngle informed.

The company's board also approved an interim dividend of Rs 3.35 per share.

On Thursday, shares of Asian paints ended 0.67 percent lower at Rs 2,100.25 on the BSE.

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