Asian Paints on Thursday logged 32.83 per cent rise in consolidated net profit at Rs 803.83 crore for the second quarter ended September 30, 2022 driven by robust sales, the PTI reported. The company had posted a net profit of Rs 605.17 crore in the same quarter last fiscal year, Asian Paints said in a regulatory filing.
The company's revenue from operations stood at Rs 8,457.57 crore in the quarter under review as compared to Rs 7,096.01 crore in the year-ago period, it added.
"The domestic decorative business showed resilience to deliver a double-digit volume growth and healthy value growth despite subdued demand conditions, impacted by the extended monsoon," Asian Paints Managing Director & CEO Amit Syngle said.
The home decor business continued to gain traction with focus on lighting, kitchen and bath along with expansion of 'Beautiful Homes Stores' and the home decor implementation arm, 'Beautiful Homes Service' across markets, he added.
Syngle further said, "The auto OE (original equipment) business delivered robust growth, while the industrial coatings business continued with its high growth trajectory led by protective and powder coatings." The international business also registered a good double-digit revenue growth despite multiple headwinds across key markets, he added.
Sales in the international market increased 15.3 per cent in Q2 FY23 to Rs 805.99 crore from Rs 699.28 crore in the year-ago period, the company said.
Asian Paints said its board of directors has approved payment of an interim dividend of Rs 4.40 per equity share.
The company on Thursday entered into a binding term sheet for the setting up of a joint venture in Fujairah, UAE, with Riddhi Siddhi Crusher & Land Transport (Riddhi Siddhi), Fujairah, UAE, Associated Soap Stone Distributing Company Private Limited (ASD), India and others.
The proposed joint venture would be set up with 60:40 partnership between the company and the parties and would carry out the business of manufacturing and exporting white cement and white cement clinker, on such terms as may be mutually decided by the Parties. This is subject to due diligence and obtaining necessary regulatory and other approvals.
The initial capacity of the said manufacturing facility, to be set up in Fujairah, UAE, would be 2,65,000 tons per annum. In addition, clinker grinding units would be set up in India as well. The overall investment would be approximately Rs 550 crores, to be invested over the next two years.
The cost of the project would be funded through a combination of equity funding by the company and the parties and external debt financing.
Shares of Asian Paints closed at Rs 3,141 apiece, down 2.26 per cent on the BSE on Thursday.