Asian Paints Q4 Results: Net Profit Jumps 45 Per Cent To Rs 1,234 Crore On Robust Demand
Asian Paints' board has recommended a final dividend of Rs 21.25 per share
Asian Paints Ltd, the Indian paint maker, logged 45 per cent rise in fourth quarter (Q4) profit on Thursday, aided by easing input costs and strong demand for decorative paints, reported by Reuters.
The Mumbai-based paint firm’s consolidated net profit came in at Rs 1,234 crore ($150.9 million) for the quarter ended March 31, compared with Rs 850 crore a year earlier, which included a one-time expense of Rs 116 crore.
The company board has recommended a final dividend of Rs 21.25 per share.
High volatility in crude, which accounts for about 30 per cent of raw material costs, has corrected from its 2022 high of $139.13 per barrel when it drove up Asian Paints' raw materials expenses over 21 per cent. Its cost of materials consumed declined nearly 5 per cent during the fourth quarter.
Analysts said the onset of an early summer helped paint companies recover from a subdued demand during the October-December period, which was hit by extended monsoon.
The company's revenue from operations rose over 11 per cent to Rs 8,787 billion.
Amit Syngle, chief executive officer (CEO) and managing director, said work on formulation and sourcing efficiencies, and easing inflation in raw material prices improved margins sequentially and over last year.
"We have been able to improve our margins in the quarter sequentially and over last year through our persistent work on formulation and sourcing efficiencies and also helped by the easing inflation in raw material prices. In Home décor, our new categories of fabrics, decorative lighting, UPVC doors and windows did well, while Kitchen and bath were sluggish. The Global business was good in Middle East and Africa though but slower in Asia, however overall, delivered good bottom line numbers," the CEO added.
Asian Paints dominates nearly half of the domestic paints sector, and the decorative paint segment accounts for about 80 per cent of the company's revenue.
Shares of Asian Paints rose nearly 3 per cent after the results. Earlier this week, smaller rival Kansai Nerolac reported nearly a fourfold surge in quarterly profit.
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