Asian Paints on July 20 said its June quarter net profit more than doubled to Rs 574.3 crore against Rs 219.6 crore year-on-year (YoY).
The profit figures saw a steep jump owing to the low base of last year.
However, the profit figure was below market expectations as a CNBC-TV18 poll of analysts had expected profit at Rs 721 crore for the quarter.
Revenue jumped 91.1 percent YoY to Rs 5,585.4 crore for the said quarter against Rs 2,922.7 crore in Q1FY21.
Revenue was slightly above the estimates of the CNBC-TV18 poll of Rs 5,550 crore.
EBITDA jumped 88.7 percent to Rs 913.6 crore against Rs 484.3 crore YoY while EBITDA margin came at 16.4 percent against 16.6 percent YoY.
EBITDA and EBITDA margin, both were below the Street expectations. CNBC-TV18 poll had estimated EBITDA at Rs 1,105 crore and EBITDA margin of 20 percent.
The company's paints business revenue grew 90.4 percent to Rs 5,464.7 crore versus Rs 2,870.6 crore YoY.
The EBIT of the paints business came at Rs 809.1 crore against Rs 371.6 crore YoY while the EBIT margin of the segment stood at 14.8 percent versus 12.9 percent YoY.
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“The domestic decorative business more than doubled its volume and delivered stellar revenues over the lower base of last year which had suffered from the first nationwide lockdown. The business registered strong compounded average growths in value and volume in comparison with Q1FY20 which was a normal quarter, indicative of a strong consistent trajectory," said Amit Syngle, Managing Director & CEO of Asian Paints.
"There has been a resilient performance across all businesses despite the challenges posed by the second COVID wave across markets, which disrupted business continuity from the second fortnight of April 2021. We registered strong growths in April 2021 and a robust resounding rebound in June 2021, post May 2021 which was impacted in a big way."
Syngle pointed out that steep inflation in raw material prices in the last quarter of the previous financial year and again in this quarter saw gross margins impacted across all businesses despite the price increases taken to mitigate this pressure to an extent.
"We continue to strongly engage with all our stakeholders and are confident of our organization’s capability to maximise on the expected uptick in the business conditions as we move forward," said Syngle. Managing Director & CEO of Asian Paints Limited.