Asian Paints Q1 net profit up 79% to Rs 1,017 crore; revenue up 55%

Asian Paints’ net profit was up at Rs 1,017 crore during the April-June quarter of financial year 2022-23 (Q1of FY23), compared with Rs 569 crore in the year-ago period. This is a rise of 78.7 per cent.

The paints major saw its revenue increase 55 per cent to Rs 8,579 crore during the quarter under review.

“The domestic decorative business experienced good consumer demand and recorded stellar revenue growth for the quarter. The volume growth registered during the quarter is one of the highest in the last six quarters,” Amit Syngle, managing director (MD) and chief executive officer (CEO) of Asian Paints, was quoted as saying in a release. 

He also said that the auto original equipment and the general industrial coatings business delivered a sturdy growth. 

“The business also registered robust four-year compound growth in volume and value terms,” he said.

During the quarter, margins stood to 19.4 per cent compared with 18.1 per cent in the year-ago quarter.

Profit before interest, depreciation and tax (PBIDT) rose 66.7 per cent to Rs 1,668 crore.

The company continued to make further inroads in its home décor business and increased its products and offerings, Syngle said.

Syngle added, “The international business also delivered a good double-digit revenue growth for the quarter despite multiple headwinds across key geographies.”

He also said, “While the persistent inflationary environment continued to impact gross margins, we delivered healthy operating margins with strong push on the premium & luxury offerings. We also drove further operational efficiencies across businesses.” 

Asian Paints also said that the economic crisis in Sri Lanka led to currency devaluation, resulting in recognition of an exceptional item of Rs 24.21 crore towards exchange loss.

This arose on foreign currency obligations of Causeway Paints Lanka (Pvt) Limited for the quarter ended June 30.

The paint major’s sales in the bath fittings business increased 120.1 per cent to Rs 117.99 crore from Rs 53.61 crore in the corresponding period of the previous year.

PBIDT for bath fittings increased to Rs 4.21 crore against a loss of Rs 1.04 crore last year.

Also, sales for the kitchen business increased by 68.3 per cent to Rs 109.04 crore from Rs 64.79 crore in the corresponding period of the previous year.