Asian Paints consol net profit down 25% on yr, misses Street estimate
This story was originally published at 16:50 IST on 17 July 2024
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MUMBAI – Asian Paints Ltd today reported a 3% decline in domestic decorative paints revenue for the quarter ended June, even as decorative paints volume increased 7%. Price cuts taken in the March quarter and a shift in the product mix hit the domestic decorative paints revenue, the company said.
The paint maker's consolidated net profit for Apr-Jun was 11.7 bln rupees, down 25% on year, and below analysts' estimate of 14.07 bln rupees. The consolidated revenue from operations was 89.7 rupees, down 2.3% on year. This was also below the Street estimate of 92.39 bln rupees.
The consolidated earnings before interest, tax, and depreciation fell 20% on year to 16.94 bln rupees, and the EBITDA margin contracted to 18.9% from 23.2%.
Managing Director and Chief Executive Officer Amit Syngle was quoted in a press release, saying unanticipated raw material price inflation and supply chain challenges had hit the profitability of the decorative paints for the June quarter.
The company's total expenses increased 3.5% on year to 75.59 bln rupees. Finance costs were up 21% at 554 mln rupees, while depreciation rose 14.8% to 2.28 bln rupees.
Tax expenses fell 21% to 4.17 bln rupees. Other income was down 20.7% on year at 1.56 bln rupees.
Sequentially, the company's consolidated net profit was down 6.9% while revenue from operations increased 2.7%.
On Tuesday, shares of Asian Paints ended 0.6% higher at 2,974.45 rupees on the NSE. Today, the equity market is closed on account of Muharram. End
Reported by Rajesh Gajra
Edited by Avishek Dutta
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