Shares of Asian Paints surged on Wednesday afternoon, after the firm reported strong Q1 results, beating analyst estimates. Asian Paints shares closed 3.42% higher at Rs 1,477.15 on BSE. Asian Paints reported a 17.7% on-year rise 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 leading paint manufacturer had reported a consolidated net profit of Rs 556.85 crore in the corresponding quarter previous fiscal.

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Asian Paints net profit jumps 17.7% on-year to Rs 655 crore; key figures in a nutshell

  • Asian Paints has reported a 17.7 % rise in net profit to Rs 655.44 crores as compared to Rs 556.85 crore in the previous corresponding period.
  • The leading paint manufacturer’s Profit Before Tax (PBT) increased by 20.9 % to Rs 1,022.62 crore from Rs 846.12 crore in June-18 quarter.
  • In the period under review, revenue from operations has risen by 16.6 % to Rs 5,130.63 crore from Rs 4,398.59 crore.
  • Profit before depreciation, interest, tax and other income (PBDIT) for the group increased by 24.4 % to Rs 1,156.25 crore from Rs 929.70 crore as the the end of Apr-Jun period in 2018.
  • K.B.S. Anand, Managing Director & CEO, Asian Paints noted that 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,” he said.
  • For Asian paints, key units like Egypt and Sri Lanka continued to witness challenging business conditions impacting the overall performance, said Anand. Both the segments in the Home Improvement category viz. the Kitchen (Sleek) and Bath (Ess Ess) business, performed well in the quarter, he added.