Asian Paints Q1 Review - Pent-Up April, June Demand Fuels Performance: Centrum Broking
Paint used to color zipper sliders sits on a table during production. (Photographer: Meg Roussos/Bloomberg)

Asian Paints Q1 Review - Pent-Up April, June Demand Fuels Performance: Centrum Broking

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

Asian Paints Ltd.’s Q1 FY22 numbers beat our estimates.

Consolidated revenue/Ebitda/profit after tax grew 91.1%/88.7%/158% (two year compound annual growth rate: 4.6%/down 11.2%/down 7.0%), driven by 106% volume growth in the domestic decorative segment.

The management stated that the metros and tier-I/tier-II towns fueled growth better than rural markets; international business grew 50% plus.

Gross margin shrank 631 basis point to 38.4% owing to higher input prices, despite better product mix.

Asian Paints did some unique work on sourcing and formulation efficiencies, and took ~3% price hike in Q1.

Yet, Ebitda margin shrank 21bp to 16.4%.

Click on the attachment to read the full report:

Centrum Asian Paints - Q1FY22 Result Update .pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.