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Q1 Results: Asian Paints’ Net Profit Rises On Higher Margins, Beats Estimates

Asian Paints’ net profit rose 17.5 percent year-on-year to Rs 655 crore in the April-June period.

Coloring ink is poured into a container in Kolkata, India, (Photographer: Taylor Weidman/Bloomberg)
Coloring ink is poured into a container in Kolkata, India, (Photographer: Taylor Weidman/Bloomberg)

Asian Paints Ltd.’s net profit for the June quarter beat estimates as margin rose and volumes of the decorative business surged.

Net profit rose 17.5 percent year-on-year to Rs 655 crore in the April-June period, according to its exchange filing. That compares with the Rs 550-crore consensus estimate of analysts tracked by Bloomberg.

“The decorative business segment in India registered a high double-digit volume growth and delivered a strong performance across regions,” KBS Anand, managing director and chief executive officer at Asian Paints, said in a press release. The automotive and the industrial coatings segments, however, were impacted by a demand slowdown, he said.

The company’s revenue rose 16.8 percent over the last year to Rs 5,130 crore in the June quarter, also higher than the Rs 4,886-crore estimate.

Earnings before interest, tax, depreciation and amortisation rose 24 percent to Rs 1,156 crore supported by “benign raw material prices”, according to the press release. Its Ebitda margin expanded to 22.5 percent from 21.2 percent. This jump was partly due to a change in accounting standard, the company said, boosting its margin by 1.2 percentage points, or Rs 62 crore.

Shares of Asian Paints fluctuated between gains and losses to trade 0.9 percent higher after the Q1 results announcement. The stock has gained nearly 7 percent so far this year, compared with a 3.8 percent rise in the benchmark NSE Nifty 50 Index, Bloomberg data showed.

Q1 Results: Asian Paints’ Net Profit Rises On Higher Margins, Beats Estimates