ASIAN PAINTS Announces Quarterly Results (3QFY21); Net Profit Up 63.1%

Fri, 22 Jan

ASIAN PAINTS has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

ASIAN PAINTS Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	54,203	53,502	67,885	26.9%	25.2%
Other income	Rs m	698	826	979	18.5%	40.2%
Turnover	Rs m	54,901	54,329	68,864	26.8%	25.4%
Expenses	Rs m	42,309	40,850	50,006	22.4%	18.2%
Gross profit	Rs m	11,894	12,652	17,879	41.3%	50.3%
Depreciation	Rs m	1,971	1,936	1,932	-0.2%	-2.0%
Interest	Rs m	241	205	211	3.0%	-12.2%
Profit before tax	Rs m	10,381	11,337	16,715	47.4%	61.0%
Tax	Rs m	2,776	2,936	4,314	46.9%	55.4%
Profit after tax	Rs m	7,605	8,401	12,401	47.6%	63.1%
Gross profit margin	%	21.9	23.6	26.3
Effective tax rate	%	26.7	25.9	25.8
Net profit margin	%	13.9	15.5	18.0

Year-on-Year Performance:

• The company's operating income during the quarter grew 25.2% on a year-on-year (YoY) basis. The expenses were up by 18.2% YoY during the same period.
• The company's operating profit increased by 50.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 26.3% in 3QFY21 as against 21.9% in 3QFY20.
• Depreciation charges declined by 2.0% and finance costs declined by 12.2% YoY, respectively.
• Other income increased by 40.2% YoY during the quarter.
• Net profit for the quarter increased by 63.1% YoY. Net profit margins during the quarter increased from 13.9% in 3QFY20 to 18.0% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 26.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 22.4% QoQ during the same period.
• The company's operating profit increased by 41.3% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 26.3% in 3QFY21 as against 23.6% in 2QFY20.
• Net profit for the quarter increased by 47.6% QoQ, while net profit margins increased from 15.5% in 2QFY20 to 18.0% in 3QFY21.

To see how ASIAN PAINTS has performed over the last eight quarters,please visit here.

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ASIAN PAINTS Share Price Performance

Over the last one year, ASIAN PAINTS share price has moved up from Rs 1,778.3 to Rs 2,662.1, registering a Gain of Rs 883.8 or around 49.7%.

Overall, the S&P BSE SENSEX is up 18.7% over the year.

Current Valuations

At the current price of Rs 2,662.1, the price to earnings (P/E) ratio of ASIAN PAINTS stands at 91.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 25.2 times.