Asian Paints Q3 results: Net profit rises 5.6% to Rs 1,072.7 crore

The paint major's net sales increased by 1.3 per cent to Rs 8,636.7 crore

Asian Paints on Thursday witnessed a 5.6 per cent rise in its net profit in the December quarter. The country’s largest paint maker saw its profits rise to Rs 1,072.7 crore as its decorative business registered a flat volume and net sales due to last year's price increases. The firm’s net sales increased by 1.3 per cent to Rs 8,636.7 crore.   

In the corresponding quarter last fiscal, its revenue from operations stood at Rs 8,527.2 crore and net profit stood at Rs 1,015.7 crore. Sequentially, Asian Paints saw its revenue from operations increase 2.1 per cent and its net profit rise 37 per cent. 

“The extended monsoon in October also affected retailing in the peak festival season but demand picked up in November and December leading to a double-digit growth for the decorative business in December” Amit Syngle, managing director and chief executive officer, Asian Paints, said in its earnings release.

“Overall, on a nine-month basis, the decorative business continues to grow in healthy double-digit volume and value growths with strong compound annual growth rates (CAGRs),” he added.

Syngle also said that the operating margins improved strongly on a sequential basis as well as saw an improvement on a year-on-year basis driven by deflation in some of the raw material prices as well as continued work on driving operational efficiencies across businesses.

On its international business, Syngle said, “The international business was a mixed bag with good growth in West Asia and Africa while the South Asian market, especially Sri Lanka and Bangladesh, got severely impacted by the adverse forex and macro-economic conditions.”

The paint major’s home décor market continued its expansion foray but witnessed some slowdown in the bath and the kitchen business this quarter. Its industrial business did well led by strong growth in the auto OE (original equipment) and general industrial segments.