Asian Paints Q4 Results: Firm posts profit of Rs 850 crore; misses estimates – The Economic Times

lipped from: https://economictimes.indiatimes.com/markets/stocks/earnings/asian-paints-q4-results-firm-posts-profit-of-rs-850-cr-misses-estimates/articleshow/91464131.cms

Synopsis

The profit is lower due to an exceptional loss of Rs 115.70 crore towards Sri Lanka business and expected delay in receivable subsidy from the government, the company said in a BSE filing.

NEW DELHI: Asian Paints on Tuesday reported a lower-than-expected consolidated net profit at Rs 850.42 crore for the March 2022 quarter on account of a one-time loss witnessed in Sri Lanka business. Analysts in an ET NOW poll had estimated a profit of Rs 923 crore.

The profit is lower due to an exceptional loss of Rs 115.70 crore towards Sri Lanka business and expected delay in receivable subsidy from the government, the company said in a BSE filing.

Asian Paints’ net profit stood at Rs 852.13 crore in the same quarter last year.

Stock Analysis

Stock score of Asian Paints Ltd is 5 on a scale of 10. View Stock Analysis »

The revenue from sales for the period came in at Rs 7,889.94 crore, up 20.60 per cent from Rs 6,541.94 crore that it had reported in the corresponding quarter last year.

“It was yet another quarter of solid and strong double-digit value growth across all businesses, despite the prevailing uncertainty around Covid, macro-economic challenges and heightened geopolitical tensions,” said Amit Syngle, Managing Director & CEO, Asian Paints.

“The domestic Decorative business grew strongly, registering 8 per cent volume growth and 20 per cent plus revenue growth on a high base. The international business managed to deliver double-digit revenue growth for the quarter despite severe challenges in key markets.”

The firm announced a final dividend of Rs 15.50. The total dividend for the financial year ended March 31, 2022, aggregates to Rs 19.15, including the interim dividend paid last year.

The company said on a consolidated basis, its 12-month profit before exceptional items and tax remained flat as well impacted by steep inflation in raw material prices. However, Q4 profit before exceptional items and tax increased by 12.8 per cent, it added.

“We continued to improve our operating margins on a sequential basis which was a result of some calibrated price increases, driving the premium and luxury product growths, coupled with some strong work on driving operational efficiencies across businesses,” said Syngle.

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