homemarket Newsstocks NewsAsian Paints profit soars 80% as decorative business demand surprises Street
Asian Paints profit soars 80% as decorative business demand surprises Street
Asian Paints results: Asian Paints clocked a jump of more than 80 percent in quarterly net profit, boosted by strong demand in its domestic decorative business.
Asian Paints surprised the Street with a better-than-expected rise in quarterly net profit on Tuesday, boosted by robust demand in its domestic decorative business. The paintmaker reported a net profit of Rs 1,036 crore for the April-June period, up 80.4 percent as compared to the corresponding period a year ago, beating analysts' estimates by a wide margin.
Its revenue climbed up 54.1 percent on a year-on-year basis to Rs 8,607 crore, according to a regulatory filing.
Analysts in a CNBC-TV18 poll had estimated the company's net profit for the three-month period at Rs 875 crore and revenue at Rs 7,540 crore.
The strong quarterly numbers helped the Asian Paints stock recover the day's losses.
“The domestic decorative business experienced good consumer demand and recorded stellar revenue growth for the quarter. The volume growth registered in the quarter is one of the highest in the last six quarters. The business also registered robust four-year compounded growth in volume and value terms," said Amit Syngle, Managing Director and CEO, Asian Paints.
"The international business also delivered good double-digit revenue growth for the quarter despite multiple headwinds across key geographies," Syngle added.
Asian Paints' EBITDA margin — a key measure of a company's operating profitability — improved by 170 points on a year-on-year basis to 18.1 percent. Analysts in the CNBC-TV18 poll had estimated the margin at 17.7 percent.
Asian Paints shares ended 0.1 percent higher at Rs 3,107.6 apiece on BSE after the earnings announcement, recovering by Rs 54.6 from the lowest level of the day.
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