Asian Paints on May 12 reported an 81.1 percent year-on-year growth in net profit to Rs 870 in March 2021 quarter, driven by strong growth in volume and operating income, and low base in Q4FY20.
The company's revenue from operations in Q4FY21 was at Rs 6,651.4 crore, up 43.5 percent compared from the year-ago quarter, with the volume growth at 48 percent.
"We have seen a very strong quarter aided by good demand across rural and urban areas at the country level. On the heels of a healthy Q2 and Q3 recovery, this quarter saw exceptional growth across businesses and consumer segments. This quarter the performance has been outstanding, discounting even the slightly lower base last year same quarter," said Amit Syngle, Managing Director & CEO, Asian Paints.
The domestic decorative business delivered a stellar performance, registering a 48 percent volume growth in the quarter, led by a robust growth in the premium and luxury product range, he said.
"The home improvement business also grew in a big way, registering record sales for the quarter aided by the foray into the home décor business. The industrial coatings business delivered a robust performance, particularly in protective coatings and refinish segments supported by the uptick in the industrial activity," Syngle said.
To Know All Earnings Related News, Click Here
He said the international business continued to record an exceptional double-digit volume growth, led by good growth in Asia and the Middle East.
A CNBC-TV18 analyst poll had estimated profit at Rs 900 crore on revenue of Rs 6,050 crore, with volume growth at 35-36 percent for the quarter ended March 2021.
At the operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) surged 53.4 percent YoY to Rs 1,318.3 crore and margin expanded by 130 bps YoY to 19.8 percent in Q4FY21, missing CNBC-TV18 estimates of 21.7 percent. The margin was impacted by the higher raw material prices but supported by cost measures.
"The huge inflationary trend in raw material prices has been worrying, however, its impact on profitability has been negated with some path-breaking work on sourcing and cost optimisation," said Syngle.
In the financial year 2020-21, the leading paint company registered a 15.6 percent growth in profit at Rs 3,206.75 crore and 7.4 percent growth in revenue at Rs 21,712.79 crore compared to the previous year.
Asian Paints said the board of directors recommended a final dividend of Rs 14.50 per equity share, taking the total dividend to Rs 17.85 per equity share for FY21.