Asian Paints on Tuesday posted an 80.4 percent year-on-year jump in consolidated profit to Rs 1,036 crore for the quarter ended June 2022, up from Rs 574.30 crore recorded last year. The second Covid wave affected the after last year.
Consolidated revenue for the first quarter of fiscal 2023 stood at Rs 8,607 crore, up 54 percent from Rs 5,585.36 crore reported a year ago. Notably, the overseas business experienced strong double-digit revenue growth.
“The domestic decorative business more than doubled its volume and delivered stellar revenues over the lower base of last year, which had suffered from the first nationwide lockdown. The industrial business and the home improvement business also doubled its revenue on last year’s low base,” Amit Syngle, Managing Director & CEO of the paint company said.
Asian Paints reported total expenses at Rs 7,287.84 crore, up 48.91 percent in the quarter under review against Rs 4,893.87 crore in the year-ago period.
The paint company reported EBITDA for the June quarter at Rs 913.56 crore, up 88.65 percent YoY and the margin expanded by 194 basis points (bps) to 10.61 percent.
Gross margin, however, shrank to 40.26 percent in Q1FY23, from 54.67 percent in June FY22 despite price hikes taken by the company due to increasing input costs.
“Steep inflation in raw material prices in the last quarter of the previous financial year and again in this quarter saw gross margins impacted across all businesses despite the price increases taken to mitigate this pressure to an extent,” Syngle said.
Asian Paints and its subsidiaries operate in 15 countries, with 26 manufacturing facilities and catering to customers in over 60 markets.
Shares of Asian Paints Ltd closed marginally up at Rs 3,105.00 on NSE.