Asian Paints Q3 net up 35% at ₹1,447 cr on fall in raw material prices

livemint.com:

₹1,447.98 crore for the December quarter, up 35% from ₹1,072.67 crore a year ago on the back of softening raw material prices and growth in luxury products. Revenue during the quarter rose by 5.4% to ₹9,074.9 crore primarily due to double-digit growth in the industrial business along with the extended festive season. “Growth was supported by the extended festive season, though we saw some moderation in demand in the latter part of the quarter.

Both our Auto OE and General Industrial coating businesses achieved sturdy revenue growth and good profit margins...Our margins gained significantly from growth in luxury products and softening raw material prices coupled with operational, formulation, and sourcing efficiencies in Q3," said Amit Syngle, managing director & CEO of Asian Paints Ltd, in an exchange filing. “Moving forward, we will maintain focus on driving strong sales growth and continue to invest in multiple initiatives and solutions for our customers, building on our leadership position." The paint manufacturer’s material costs for Q3 rose marginally to ₹3,837.04 crore. The company’s earnings before interest, taxes, depreciation, and amortization (Ebitda) stood at ₹2,056.1 crore, while operating margin was 22.7%.

During the quarter, the firm witnessed 12% volume growth in the decorative paint business. It also reported double-digit revenue growth in the industrial business, while the coatings business grew 6.1% in the third quarter of the current fiscal year. Revenue for its international business remained flat at ₹779.1 crore due to certain macroeconomic challenges.