Asian Paints Results: Asian Paints (Q1) Quarterly Results, News & Earnings

Asian Paints Results: Asian Paints (Q1) Quarterly Results, News & Earnings

Last updated: 21 Jul, 2021 | 08:11 am

Asian Paints Results: Asian Paints (Q1) Quarterly Results, News & Earnings
  • Profit in-line with estimates: Asian Paints has reported a 161.5 % on-year rise in its consolidated net profit at Rs 574.3 crore for the quarter ended June 30, 2021 compared to Rs 219.6 crore last year .Analysts had earlier estimated a net profit of about Rs 580 crore. On a sequential basis however profits declined by nearly 34 % from 870 crores last quarter. 

Asian Paints earnings: Trend over the quarters

  • Revenue rises: Asian Paints' consolidated revenue from operations rose 91% during the quarter ended June 21 to Rs 5,585 crore as against Rs 2,923, YoY. The domestic decorative business more than doubled its volume and delivered stellar revenue over the lower base of last year .However, the revenues fell by nearly 16% on a Quarterly basis from Rs 6651.43 last quarter.
  • Margin contracts:  Asian Paints has reported an 88.7% on-year rise to Rs  913.56 crores from ₹484.25 crore in the same period previous fiscal. However, on a sequential basis, the operational profits fell by 31%. Sharp rise in crude oil prices over the previous quarter has led to a rise in raw material costs for Asian Paints over the last few quarters, impacting margins. EBIT margin contracted to 14.36% in the quarter, from 17.64% in the previous quarter. 
  • Broad-based recovery: The industrial business and the home-improvement business doubled their revenue on last year’s low base. International business, which had seen some continuity of business in the first quarter of last year, registered strong double-digit revenue growth.

Asian Paints Q1 results 2021 Review

Asian Paints earnings have been strong in the Apr-Jun 21 period, indicating the resilience of its business. The company was able to report strong numbers on a YoY basis mainly due to a lower base in the previous year (Apr- Jun 20). The numbers last year were severely impacted due to the lockdown imposed from Mar-20. However, the company’s performance has shown a decline on topline as well as bottomline when compared on a quarterly basis, as the impact of the second wave of the pandemic was felt in the quarter. Further, a sharp rise in raw material prices have weigned on the margins. 

Going forward, the company is quite confident in its abilities to maximize the expected uptick in the business conditions moving forward. Further, as the economy improves further, Asian Paints will be able to expand its market share, and post growth in revenues and profits. After announcing the earnings for Apr-June quarter, shares of Asain Paints closed 5.47% higher at Rs 3,145.07, clocking a record high of Rs 3,179.50 intra-day. Asian Paints now become the 2nd largest paints company in the world in terms of market capitalization.

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