Asian Paints declined 6.29% to Rs 2,969.50 after the company posted a 28.2% decline in consolidated net profit to Rs 595.96 crore in Q2 FY22 as compared to Rs 830.37 crore posted in Q2 FY21.
The paint maker's revenue from operations increased by 32.6% to Rs 7,096 crore in Q2 FY22 from Rs 5350.23 crore posted in Q2 FY21. Profit before tax declined by 27.8% to Rs 826.24 crore in Q2 FY22 over Q2 FY21.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 crores from Rs 1265.20 crore. Total expenses spiked by 49.2% to Rs 6,418.17 crore in Q2 FY22 from Rs 4,299 crore posted in the same period last year.
Amit Syngle, MD & CEO of Asian Paints said, The domestic decorative business continued to move ahead on its high growth trajectory with an unprecedented 34% volume growth in the quarter and a strong compounded growth rates over the last two years. The Industrial Coatings business also registered strong double digit revenue growth led by robust demand for Protective Coatings and uptick in the automotive sector. The Home Improvement business continued to scale up in a significant manner registering its highest quarterly revenues, aided by strong alignment with the projects business. Performance in the International Business was a mixed bag with good growth in the South Asian markets while markets in Middle East & Africa were sluggish with challenges around Covid and forex availability. Steep inflation seen in raw material prices, since the beginning of this calendar year, has been phenomenal and has impacted gross margins across all businesses in the quarter.
He further said, We have taken a series of price increases and would look at further price increase to mitigate the impact of this persistently high inflation and are confident that we should be able to turn this around strongly in the coming quarter. All the businesses continue to engage in some ground-breaking work to enhance customer engagement and advance the value proposition of its various product and service offerings, further enlarging the organization's value creation potential.
Meanwhile, the board of directors have approved a payment of interim dividend of Rs 3.65 per equity share. The record date for the purpose of payment of interim dividend is fixed as 29th October 2021.
Asian Paints is a leading paint company of India. The company along with its subsidiaries has operations in 15 countries across the world with 26 paint manufacturing facilities, servicing consumers in over 60 countries.
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