Asian Paints Q4 PAT declines 2% to Rs 462 cr

On a consolidated basis, Asian Paints' net profit declined 2.1% to Rs 461.89 crore on 7.1% fall in net sales to Rs 4635.59 crore in Q4 March 2020 over Q4 March 2019.

The paint maker's profit before tax stood at Rs 699.22 crore in Q4 March 2020, declining 5.3% from Rs 738.30 crore in the same period last year. Total tax expense declined 13.2% to Rs 218.97 crore in Q4 March 2020 from Rs 252.31 crore in Q4 March 2019.

Commenting on company's performance, Amit Syngle, managing director & CEO, Asian Paints said, "Loss of sales due to the lockdown in March 2020 impacted the decorative business segment in an otherwise strong quarter with double digit volume growth in the first two months of the quarter. Even with the loss of sales, the decorative business segment in a tough year has registered double digit volume growth for the year and strong profit numbers. The industrial business segment under the automotive coatings JV (PPG-AP) and industrial coatings JV (AP-PPG) continued to be impacted by the downturn in the automotive industry and the overall slowdown in the economy. Both the segments in the Home Improvement category viz. the Kitchen (Sleek) and Bath (Ess Ess) business, continued to be impacted by the slowdown in the real estate construction space."

"Complete shutdown of business in last few days of March 2020 further added to the pressure on businesses. The international business portfolio did well supported by growth from markets in Ethiopia, Egypt, UAE and Nepal. However, key units of Sri Lanka and Bangladesh were impacted due to the lockdown conditions. Profitability across businesses was well supported by the benign raw material prices and cost optimisation efforts," he added

On a consolidated basis, the company's net profit rose 25.6% to Rs 2774.19 crore in fiscal year ending 2020 (FY20) as against Rs 2208.04 crore reported in fiscal year ending 2019 (FY19). Net sales for FY20 stood at Rs 20,211.25 crore in FY20, rising 5% from Rs 19,240.13 crore in FY19.

Meanwhile, the board has recommended a final dividend of Rs 1.5 per share. The result was announced after market hours on Tuesday, 23 June 2020.

Shares of Asian Paints jumped 4.43% to Rs 1758.20 on BSE. Asian Paints is India's leading paint company and ranked among the top ten decorative coatings companies in the world.

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