Asian Paints Q3 results: Net profit falls 18% to Rs 1,016 cr

However, consolidated revenue from operations rises 26% to Rs 8,527 cr

Paint major Asian Paints on Thursday reported 18% decline in consolidated net profit at Rs 1,016 crore for the quarter ending December 31, 2021. It was Rs 1,238 crore in the year-ago period.

Consolidated revenue from operations rose 26% to Rs 8,527 crore as compared to Rs 6,788 crore in Q3FY21.

In a stock exchange filing, the company said automotive coatings business was impacted in Q3FY22 due to challenges being faced by automotive sector.

Steep inflationary trend in raw material prices continued to impact gross margins across businesses in quarter, the company said.

Asian Paints' total expenses were at Rs 7,220.29 crore in the latest December quarter, up 38.46% compared to the same period a year ago. It was at Rs 5,214.88 crore in the year-ago period.

On Thursday, the company's scrip on BSE closed trading 0.7% higher at Rs 3,303.

Asian Paints Managing Director & CEO Amit Syngle said 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".

Its revenue from the paints segment climbed 25.39% to Rs 8,319.42 crore while revenue from home improvement segment grew 36.42% to Rs 209.26 crore.

"The home improvement business continued its streak of healthy growth and registered another solid performance, with a steady expansion trajectory across the country," Syngle said.

The domestic decorative business registered yet another strong double-digit growth performance, five quarters in a row, with an 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, Syngle said.

Syngle noted that international business registered a 9% value growth and was impacted by sluggish market conditions in most of the units in the Middle East and specific challenges like civil unrest in Ethiopia and forex crisis in Sri Lanka.

"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 said.

With inputs from PTI