Decorative Paints Maker Asian Paints’ consolidated net profit for the March quarter up by 84.5% at ₹852.13 crores comparatively higher to ₹461.89 crore in the previous year. Revenue From Operations of the company also witnessed an improvement of 43.5% at ₹6,651 crores against ₹4,365.4 crore year-on-year (YoY).
The company’s board of directors suggested a final dividend of ₹14.5 per share for the financial year 2020-21, bringing the total dividend for FY21 to Rs 17.85.
Asian Paints Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 53 per cent making the total of Rs 1,318 crore, while the EBITDA margin increased 127 basis points to 19.8 per cent.
”The domestic Decorative business delivered a stellar performance registering a 48% volume growth in the quarter, led by a robust growth in the premium and luxury product range,” said Amit Syngle, managing director and chief executive officer of Asian Paints Ltd.
”The huge inflationary trend in raw material prices has been worrying, however, its impact on profitability has been negated with some path-breaking work on sourcing and cost optimization. The current business environment is unprecedented, and we would continue to strongly engage with all our stakeholders taking all necessary measures to tackle this uncertainty,” added Syngle.
On Wednesday, the stock of Asian Paints rose marginally to close at Rs 2,560.15 per share on the BSE compared to a 0.96 per cent drop in the standard Sensex.
For FY 2020-21, the company reported a consolidated profit of Rs 3,207 crore, which increased 15 per cent over the last year. Asian Paints revenue grew 7 per cent to Rs 21,713 crore, despite the impact of the covid-10.
”We have seen a very strong quarter aided by good demand across rural and urban areas at the country level. On the heels of a healthy Q2 and Q3 recovery, this quarter saw exceptional growth across businesses and consumer segments. This quarter the performance has been outstanding, discounting even the slightly lower base last year in the same quarter,” said Syngle.