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Paintmaker Asian Paints has reported an 80% growth in its profits for the quarter ending in June 2022.
The large growth in profit was on account of the company's low base last year as profit for that corresponding quarter came in at Rs 574.30 crores as opposed to Rs 1,036.03 crores this year.
Revenues of the company surged 54% YoY to Rs 8,607 crores as the company recorded its highest sales volume in six quarters, beating all Street estimates. The sales for Bath Fittings grew 120% to Rs 118 crores while the same for Kitchens business grew 68% to Rs 109 crores.
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EBITDA of the company improved to 16.6% while its EBITDA margin grew 170 bps to 18.1%.
The company also recognized an exceptional loss of Rs 24.2 crores as an exchange loss on foreign currency obligations of Causeway Paints Lanka due to the devaluation of the Sri Lankan currency. The company faced several headwinds but its International business managed to report double-digit growth.
"The domestic decorative business experienced good consumer demand and recorded stellar revenue growth for the quarter. The volume growth registered in the quarter is one of the highest in the last six quarters. The business also registered robust 4-year compounded growth in volume and value terms. The Auto OE and the General Industrial Coatings business delivered a sturdy growth trajectory," said Amit Syngle, MD & CEO of Asian Paints.
July has been favorable for the stock of Asian Paints as the stock has grown consistently throughout the month. Currently, the stock trades around Rs 3,172 per share, up 2% today and 17.3% in a month.
Article by Aman Agarwal.
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