Asian Paints net profit rises 160% to Rs 568 cr in April-June

Asian Paints on Tuesday reported a 160.2 per cent year-on-year (YoY) jump in its consolidated net profit for April-June quarter at Rs 568.50 crore.
 
The company had reported a net profit of Rs 218.45 crore in the year-ago quarter, which was hit by the nationwide lockdown imposed to curb the spread of COVID-19 infections. The paint maker had posted a net profit of Rs 852.13 crore in the preceding January-March quarter.
 
Revenue from operations rose 91.1 per cent to Rs 5,585.36 crore during the quarter ended June 2021.
 
On a standalone basis, the company's net profit rose 136.6 per cent to Rs 596.06 crore. It stood at Rs 819.60 in the preceding March quarter. Revenue from operations jumped 95.6 per cent to Rs 4,785.91 crore.
 
"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 Q1 FY20 which was a normal quarter, indicative of a strong consistent trajectory," Asian Paints MD and CEO Amit Syngle said.
 
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The industrial business and home improvement business also doubled its revenue on last year's low base, while international business, which had seen some continuity of business in the first quarter of last year, registered strong double digit revenue growth, Syngle added.
 
The company registered strong growth in April 2021 and a robust resounding rebound in June 2021, post May 2021 which was impacted in a big way by the second wave of COVID-19 pandemic.
 
"Steep inflation in raw material prices in the last quarter of 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," Syngle said, adding the company is confident about its capability to maximise on the expected uptick in the business conditions going ahead.
 
Shares of Asian Paints closed 6.04 per cent higher at Rs 3,159.20 on the BSE on Tuesday.