Asian Paints gains after Q3 PAT jumps 62% YoY

Asian Paints rose 1.95% to Rs 2750.40 after the company's consolidated net profit increased by 62% to Rs 1,238.34 crore on a 25.2% rise in revenue from operations to Rs Rs 6,788.47 crore in Q3 FY21 over Q3 FY20.

On the segmental front, revenue from paints business was Rs 6,635.08 crore (up 25.3% YoY) while the revenue from home improvement business was Rs 153.39 crore (up 21.6% YoY) in the third quarter.

Profit before depreciation, interest, tax and other income (PBDIT) for the group increased by 50.3% to Rs 1,787.89 crore in Q3 December 2020 from Rs 1,189.39 crore in Q3 December 2019.

Profit before tax in Q3 FY21 stood at Rs 1,696.76 crore, up by 60.5% Rs 1,057.28 crore in Q3 FY20. Current tax expenses during the quarter rose 52.8% year-on-year (YoY) to Rs 423.59 crore.

Amit Syngle, Managing Director & CEO, Asian Paints, "Demand conditions continued to exhibit a strong recovery across business segments, spread over most regions in the third quarter of this financial year. The domestic Decorative business delivered a powerful performance with more than 30% volume growth led by a strong performance in premium and luxury portfolios. The Home Dor foray of Asian Paints got a big fillip from a strong performance of the Home Improvement business.

The Industrial coatings business delivered a robust performance, particularly in Protective coatings and Auto OE businesses which rebounded in a big way, benefited by resurgence in the industrial activity. The International business recorded a double-digit volume growth, strongly led by good growth in Asia and Middle East.

Profitability across businesses has been well supported by a good Sales mix and some excellent work in cost optimization & sourcing measures pursued strongly through innovation programs.

Asian Paints is India's leading paint company and ranked among the top ten Decorative coatings companies in the world. It services customers over 60 countries through Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints. The company also has presence in the home improvement and dor space in India through Sleek (kitchens, wardrobes) and Ess Ess (bath fittings & sanitaryware).

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