The company’s consolidated revenue from operations grew 43.5 per cent on-year to Rs 6,651.4 crore, sharply above Street’s expectations. The company saw a volume growth of 48 per cent on-year for the reported quarter, which was also ahead of analysts’ estimates.
The company’s board has also recommended a final dividend of Rs 14.5 per share for the financial year ended March.
“The domestic decorative business delivered a stellar performance registering a 48 per cent volume
growth in the quarter, led by a robust growth in the premium and luxury product range,” said Amit Syngle, managing director and chief executive officer of Asian Paints.
The company’s home improvement business registered record quarterly sales in the March quarter, reflecting the extent of demand recovery in the economy before the advent of the second Covid-19 wave.
Asian Paints’ profit before interest, tax, depreciation and amortization jumped 53.4 per cent on-year to Rs 1,318.3 crore despite the headwinds faced in raw material prices. Raw material costs jumped 42 per cent on-year in the quarter to Rs 3,435.6 crore, but the company said “impact on profitability has been negated with some path-breaking work on sourcing and cost optimization”.
“The huge inflationary trend in raw material prices has been worrying. The current business environment is unprecedented, and we would continue to strongly engage with all our stakeholders taking all necessary measures to tackle this uncertainty,” said Syngle.
Shares of Asian Paints ended flat at Rs 2,555.3 on the National Stock Exchange.
