Paint makers tumble after Asian Paints posts weak Q2 numbers

Shares of five paint makers fell by 0.62% to 6.01% after the paint major's net profit tumbled 28.2% in Q2 FY22 over Q2 FY21.

Berger Paints (down 6.01%), Asian Paints (down 5.12%), Asahi Songwon Colors (down 2.07%), Shalimar Paints (down 1.34%) and AkzoNobel India (down 0.62%) declined.

On a consolidated basis, Asian Paints' revenue from operations has increased by 32.6% to Rs 7,096.01 crore in Q2 September 2021 from Rs 5,350.23 crore in Q2 September 2020. Profit before depreciation, interest, tax and other income (PBDIT) for the group (before share in profit of associates) decreased by 28.5% to Rs 904.45 crore from Rs 1265.20 crore. Profit Before Tax (PBT) decreased by 27.9% to Rs 826.24 crore from Rs 1,145.52 crore. Net profit after non-controlling interest decreased 28.2% to Rs 595.96 crore as compared to Rs 830.37 crore in the previous corresponding period.

Meanwhile, firm crude oil prices also put pressure on paint makers.

In the commodities market, Brent crude for December 2021 settlement was down 85 cents or 0.99% to $84.97 a barrel.

Higher crude oil increases input costs for paint companies, which use crude derivatives.

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