Paints business revenue degrew by 5.6 percent sequentially but grew by 11.5 percent YoY. Its EBIT fell 21.6 percent QoQ and 5 percent YoY.
Asian Paints reported fourth-quarter earnings on May 9 that missed analysts estimates on weak operating income.
Consolidated profit was lower by 1.7 percent year-on-year at Rs 487 crore in quarter ended March 2019.
Revenue from operations increased 11.7 percent YoY to Rs 5,018 crore in Q4 from Rs 4,492.30 crores with decorative business registering double-digit volume growth in India.
The company announces a final dividend of Rs 7.65 per equity share
"The decorative business segment in India registered double-digit volume growth in the fourth quarter. The industrial coatings JV (AP-PPG) witnessed good growth in the dealer channel for both, powder and protective coatings," KBS Anand, Managing Director & CEO said.
The automotive coatings JV (PPG-AP) growth was impacted as a result of the slowdown in the auto OEM segment, he added. "High raw material prices and marketing spends in the fourth quarter affected the margins."
He said challenging business conditions affected operations in some of the key markets in our International business portfolio, especially Egypt, Ethiopia, Bangladesh and Sri Lanka.
At operating level, consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) slipped 2 percent YoY to Rs 823 crore and margin contracted 230 basis points to 16.4 percent.
CNBC-TV18 poll estimates for profit were Rs 570 crore and revenue Rs 5,200 crore. EBITDA was expected at Rs 958 crore and margin at 18.4 percent for the quarter.The stock closed at Rs 1,350, down Rs 37.60, or 2.71 percent on the BSE.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.