Asian Paints on June 23 reported a 2.1 percent year-on-year decline in consolidated profit at Rs 462 crore for Q4FY20.
Analysts polled by CNBC-TV18 had estimated the figure at Rs 515 crore.
Revenue during the quarter also declined 7.1 percent to Rs 4,635.6 crore compared to corresponding period last fiscal.
"Loss of sales due to the lockdown in March 2020 impacted the decorative business segment in an otherwise strong quarter with double digit volume growth in the first two months of the quarter," Amit Syngle, Managing Director & CEO said.
On the operating front, earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 3 percent year-on-year to RS 859.62 crore in the quarter ended March 2020, but margin increased 80 bps to 18.6 percent YoY in Q4 which was ahead of a CNBC-TV18 poll estimates of 18.3 percent.
The margin was supported by lower raw material cost. Crude oil, the raw material of the company, fell sharply during the quarter as oil demand hit by the worldwide lockdown to control the virus spread.
Find All Earnings Related News Here
Standalone net profit for the quarter was lower by 5.4 percent and revenue from operations declined by 8.4 percent compared to same period last year.
In full year FY20, consolidated net profit (from continuing operations) increased by 25.5 percent and revenue grew by 5 percent compared to previous year, said the company in its BSE filing.
"Even with the loss of sales, the decorative business segment in a tough year has registered double digit volume growth for the year and strong profit numbers. The Industrial business segment under the automotive coatings JV (PPG-AP) and industrial coatings JV (AP-PPG) continued to be impacted by the downturn in the automotive industry and the overall slowdown in the economy," Amit Syngle said.
The International business portfolio did well supported by growth from markets in Ethiopia, Egypt, UAE and Nepal; however, key units of Sri Lanka and Bangladesh were impacted due to the lockdown conditions, he added.
Asian Paints announced a final dividend of Rs 1.50 per share, taking the total dividend of financial year 2019-20 to Rs 12.