Asian Paints, the country’s largest paint manufacturer, has posted a 6.4% rise in consolidated net profit of Rs 1,097.06 crore for the third quarter ended December 31, as demand rose after the extended monsoon. It had posted a net profit of Rs 1,031.29 crore a year ago.
Consolidated revenue from operations rose to Rs 8,636.74 crore against Rs 8,527.24 crore a year ago. However, the third quarter earnings came below the Street estimates. A consensus estimate of 13 brokers by Bloomberg was expecting a consolidated net profit of Rs 1,158.80 crore. The brokers had estimated a revenue of Rs 9,491.80 crore (14 brokers).
“The domestic decorative business registered a flat volume and value sales delivery for the quarter, on a very high price increase base in the previous year. The extended monsoon in October also affected retailing in the peak festival season, but demand picked up in November and December, leading to a double-digit growth for the decorative business in December,” Asian Paints MD & CEO Amit Syngle said.
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“The industrial business did well, led by strong growth in the auto original equipment business and general industrial segments. The international business was a mixed bag with good growth in West Asia and Africa, while the South Asia market, especially Sri Lanka and Bangladesh, got severely impacted by the adverse forex and macro-economic conditions,” he added.
On a standalone basis, the company’s third quarter net profit rose 6.4% to Rs 1,085.88 crore from Rs 1,020.26 crore a year ago. The company’s revenue from operations rose to Rs 7,521.8 crore from Rs 7,491.13 crore a year ago.
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Asian Paints’ home décor witnessed some slowdown with sales of bath fittings business falling by 10.9% in Q3 to Rs 89.84 crore from Rs 100.84 crore. The kitchen business sales fell by 7.1% to Rs 100.68 crore from Rs 108.41 crore.
On the international business front, sales rose 2.1% in Q3 to Rs 778.82 crore from Rs 762.43 crore. In constant currency terms, sales rose 13.4%, it added.