Asian Paints Q3 results update!
Last updated: 21 Jan, 2021 | 11:32 am
- Profit beats estimates: Asian Paints has reported a 62% on-year rise in net profit to ₹1,265.35 crore in Oct-Dec 20 period. Analysts had earlier estimated a net profit of about ₹971 crore.
- Revenue rises: Revenue rose 25% to Rs 6,788.47 crore, against an estimated Rs 6,029.2 crore. The company’s domestic decorative business delivered more than 30% volume growth, led by premium and luxury portfolios.
- Margin Expansion: Operating profit rose 50% to Rs 1,787.89 crore. The company’s margins expanded 440 bps to 26.3% due to favourable sales mix and cost optimisation.
- Broad-based recovery: Demand conditions continued to improve across segments, spread over most regions in Q3FY21. The Home Décor foray of Asian Paints got a big fillip from a strong performance of the Home Improvement business. The Industrial coatings business delivered a robust performance, aided by recovery in industrial activity.
After a sharp plunge in Q1 numbers (because of the nationwide lockdown), the company’s business has bounced back much faster than initially expected. The company has posted its highest ever margins and highest Ever Quarterly Profit in Oct-Dec 20. Lower crude oil prices and cost savings helped the company report robust gross and operating margin expansion for the quarter ended December 2020. The quarterly numbers were also supported by demand recovery due to the festive push. Further economic recovery will help Asian Paints to deliver consistent growth in the upcoming quarters.