Asian Paints Q3FY22 Results: Profits declines 18% YoY to Rs 1,031 crore

Paint maker Asian Paints today reported an 18.49 per cent YoY decline in the consolidated profit at Rs 1,031.29 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 1,265.35 crore in the corresponding quarter last year.

The company's revenue from operations grew 25.61 per cent YoY to Rs 8,527.24 crore compared to Rs 6,788.47 crore posted last year.

Asian Paints EBITDA dropped by 13.73% to Rs 1,542.31 crore in the reported quarter compared to Rs 1,787.89 crore posted last year. Its margin contracted to 18.1 per cent in Q3FY22 compared to 26.3 per cent posted in Q3FY21.

The steep and unprecedented inflationary trend in raw material prices continued to impact the Gross margins across businesses this quarter. Substantial price increases have been taken in November and December to mitigate this inflation impact, improving the margins on a sequential basis.

"The domestic Decorative business registered yet another strong double-digit growth performance, five quarters in a row, with an 18 per cent volume growth, on a strong base of the previous year. The Industrial Coatings business also registered a robust double-digit revenue growth, especially in the Protective Coatings segment. However, the automotive coatings business was impacted by the challenges facing the automotive sector," said Amit Syngle, Managing Director & CEO, Asian Paints Limited.

He further added, "The Home Improvement business continued its streak of healthy growth and registered another solid performance, with a steady expansion trajectory across the country. International Business registered a 9 per cent value growth and was impacted by sluggish market conditions in most of the units in the Middle East and specific challenges like civil unrest in Ethiopia and the forex crisis in Sri Lanka."