Asian Paints Q3 Results: Profit surges 35% YoY to Rs 1,448 crore on volume growth, improvement in margins
Asian Paints Ltd consolidated net profit jumped 35% on year to ₹1,447.7 crore in the December quarter helped by a double-growth in volumes and as operating profit got a boost from lower raw material costs.
The country’s largest paint-maker’s volume growth of 12% was largely in line with market expectations, while the bottomline was marginally ahead of Street estimates. Consolidated sales, meanwhile, rose by a little over 5% to ₹9,074.9 crore.
The company has guided for its volume momentum and the softness in raw material prices sustaining in the current quarter.
“Satisfactory monsoon coupled with uptick in Government spending and moderating inflation is likely to bring in positivity for rural economy,” it said in its investor presentation.
Asian Paints has seen a double-digit growth in volumes for four years now on a compounded annual growth basis.
“Growth was supported by the extended festive season, though we saw some moderation in demand in the latter part of the quarter,” Amit Syngle, the managing director and chief executive officer of the company said. “Both our Auto OE and General Industrial coating businesses achieved sturdy revenue growths and good profit margins,” he said.
Asian Paints’ profit before depreciation, interest, tax, other income, and exceptional items rose by nearly 28% to ₹2,056.1 crore, while gross margins improved by 510 basis points to 43.4%.
Operating margins expanded by 400 basis points year-on-year to 22.7%.
