Asian Paints, India's leading paint company, on Wednesday reported 17.7 per cent year-on-year growth in consolidated net profit after minority interest at Rs 655 crore for the first quarter ended June 30, 2019, helped by the double digit volume growth in decorative business segment in India.
"The paint company had posted a consolidated net profit of Rs 556.85 crore in the corresponding quarter last year," Asian Paints said in a filing to the Bombay Stock Exchange.
Revenue from operations rose 16.6 per cent to Rs 5,130.63 crore in Q1FY20 as compared to Rs 4,398.59 crore in Q1FY19.
Profit before depreciation, interest, tax and other income (PBDIT) jumped 24.4 per cent to Rs 1,156.25 crore from Rs 929.70 crore a year ago, the company said.
Asian Paints' profit before tax (PBT) increased by 20.9 per cent to Rs 1,022.62 crore from Rs 846.12 crore in the year ago period.
On the standalone basis, the net profit grew 20.5 per cent YoY to Rs 652.45 crore, while total revenue from operations increased 18.2 per cent to Rs 4,380.16 crore during the April-June quarter.
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Commenting on Q1 results, KBS Anand, Managing Director & CEO, Asian Paints said: "The decorative business segment in India registered a high double digit volume growth and delivered strong performance across regions. The Automotive coatings JV (PPG-AP) business was effected by the severe slowdown being witnessed in the automobile industry. Even the Industrial Coatings JV (AP-PPG) business was impacted by demand slowdown. Benign raw material prices, however, supported the margins for the entire coatings business."
In the International operations, key units like Egypt and Sri Lanka continued to witness challenging business conditions impacting the overall performance, he said.
"Both the segments in the home improvement category viz. the kitchen (sleek) and Bath (Ess Ess) business, performed well in the quarter," he added.
Following Q1 earnings, shares of Asian Paints were trading at Rs 1,465.15 apiece, up 2.58 per cent, on the BSE on Wednesday.
Edited by Chitranjan Kumar
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