Asian Paints Q3 net profit grows 20% YoY to Rs 764 crore; revenue rises 3%

Asian Paints on Wednesday reported a 20 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 764.43 crore for the quarter ended December 31, 2019. The company had posted profit of Rs 635.83 crore in the corresponding quarter of the previous fiscal. Sequentially, the numbers declined 7.7 per cent.

Revenue from operations stood at Rs 5,420.28 crore, up around 3 per cent YoY. Total income grew 3.3 per cent YoY to Rs 5,490 crore.

Profit before tax (PBT) of the company increased by 8.4 per cent to Rs 1,057.28 crore from 975.01 crore in the year-ago period.

Basic and diluted earnings per share (EPS) came in at Rs 7.97 against Rs 6.63 in the year-ago quarter. 

“The decorative business segment in India registered a low double digit volume growth, impacted by the slowdown in the overall economy. Automotive coatings JV (PPG-AP) business continued to be impacted by the downturn in the automobile industry while the Industrial Coatings JV (AP-PPG) business saw some demand pick-up in the Protective Coatings segment. Benign raw material prices benefited the entire coatings business," said KBS Anand, Managing Director & CEO, Asian Paints.

"International operations performance was impacted by challenging business conditions in some key units in GCC and Sri Lanka. Both the segments in the Home Improvement category viz. the Kitchen (Sleek) and Bath (Ess Ess) business, continue to be impacted by the slowdown in the real estate construction space," Anand added. 

For the nine months ended December 31, 2019, Asian Paints' revenue from operations on consolidated basis has increased by 9.2 per cent to Rs 15,575.66 crore from Rs 14,256.95 crore. Profit before depreciation, interest, and tax (PBDIT) for the group has increased by 14.7 per cent to Rs 3,302.15 crore from Rs 2,879.13 crore. Profit before tax (PBT) increased by 14.2 per cent to 2,934.77 crore from 2,570.55 crore. Net Profit after non-controlling interest increased by 33.2 per cent to Rs 2,243.28 crore as compared to Rs 1,684.27 crores in the previous corresponding period, the company said in its press release. 

Post the result announceement, shares of Asian Paints were trading over 1 per cent lower at Rs 1,787 apiece on the BSE.