Asian Paints Q3 PAT tumbles 18% to Rs 1,031 cr

Asian Paints' consolidated net profit fell 18.49% to Rs 1,031.29 crore on a 25.61% surge in revenue from operations to Rs 8,527.24 crore in Q3 FY22 over Q3 FY21.

On a consolidated basis, profit before depreciation, interest, tax and other income (PBDIT) for the group (before share in profit of associates) decreased by 13.7% to Rs 1,542.31 crore in Q3 FY22 from Rs 1,787.89 crore in Q3 FY21. Profit before tax (PBT) decreased by 17.9% to Rs 1,393.72 crore in Q3 December 2021 from Rs 1,696.76 crore in Q3 December 2020.

On a segmental basis, revenues from paints segment grew 25.38% to Rs 8,319.42 crore in Q3 FY22 as against Rs 6,635.08 crore in Q3 FY21. Revenues from home improvement soared 36.42% to Rs 209.26 crore in Q3 FY22 as compared to Rs 153.39 crore in Q3 FY21.

Amit Syngle, the managing director (MD) and chief executive officer (CEO) of Asian Paints, said, "The domestic decorative business registered yet another strong double digit growth performance, five quarters in a row, with a 18% volume growth, on a strong base of the previous year. The industrial coatings business also registered a robust double digit revenue growth especially in the protective coatings segment. However, the automotive coatings business was impacted by the challenges facing the automotive sector. The home improvement business continued its streak of healthy growth and registered another solid performance, with a steady expansion trajectory across the country."

"International business registered a 9% value growth and was impacted by sluggish market conditions in most of the units in Middle East and specific challenges like civil unrest in Ethiopia and forex crisis in Sri Lanka. The steep and unprecedented inflationary trend in raw material prices continued to impact the gross margins across businesses this quarter. Substantial price increases have been taken in November and December to mitigate this inflation impact, improving the margins on a sequential basis. We continue to work strongly in enhancing the value proposition for our customers across all business segments and thereby deliver sustained value creation for all our stakeholders," he added.

Shares of Asian Paints were trading 1.21% higher at Rs 3,320.90 on BSE. Asian Paints is a leading paint company of India. The company along with its subsidiaries has operations in 15 countries across the world with 26 paint manufacturing facilities, servicing consumers in over 60 countries.

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