Asian Paints on Tuesday reported a marginal decline in its consolidated net profit at Rs 850 crore for the fourth quarter ended 31 March, 2022. The company had reported a net profit of Rs 852 crore in the year-ago period.
It also mentioned that the current economic crisis in Sri Lanka has led to currency devaluation. This has resulted in recognition of an expense of Rs 48.50 crore towards exchange loss arising on foreign currency obligations of Causeway Paints Lanka (Pvt.) Limited (Causeway Paints). This expense is disclosed as an exceptional item in the consolidated financial results for the quarter.
Moreover, revenue from operations rose 18.6 per cent to Rs 7,893 crore from Rs 6,651 crore in the same quarter last fiscal, it said in a regulatory filing.
Observing the ongoing Sri Lanka economic crisis, the company also mentioned that it has revised its expectations of future performance. "Accordingly, the group has recognized an impairment loss of Rs 13.47 crores on 'Goodwill on Consolidation', recognized on acquisition of Causeway Paints. This impairment loss is disclosed as an exceptional item in the consolidated financial results for the quarter and year ended 31 March, 2022," it added.
Meanwhile, Asian Paints' board recommended payment of final dividend of Rs 15.50 per equity share. The company has fixed 10th June, 2022 as the record date. The dividend, if approved by the shareholders will be paid on or after 1 July.
Commenting on the results, Amit Syngle, Managing Director & CEO, Asian Paints, said, "It was yet another quarter of solid and strong double digit value growth across all businesses, despite the prevailing uncertainty around Covid, macro-economic challenges and heightened geo-political tensions. The domestic decorative business grew strongly, registering 8% volume growth and 20% plus revenue growth on a high base. The International Business managed to deliver a double-digit revenue growth for the quarter despite severe challenges in key markets. The Industrial Coatings business closed the quarter with another round of robust double digit revenue growth with continued momentum in the Protective Coatings segment. The scale-up in the Home Décor business continued unhindered, making further inroads through network expansion and introduction of unique value propositions for its customers."
"We continued to improve our operating margins on a sequential basis which was a result of some calibrated price increases, driving the premium and luxury product growths, coupled with some strong work on driving operational efficiencies across businesses. As an organization, we continue to work diligently on expanding our capabilities to beautify, preserve, transform all spaces and objects and in that course deliver sustained value to all our stakeholders," he added.
Shares of Asian Paints on Tuesday traded 2.60 per cent higher at Rs 3,083.30 apiece on BSE during late trade.