Asian Paint's Net Profit Boosted by 34 per cent in Q1
Manjiri Meshram / 22 Jul 2015
Recently Asian Paints announced its Q1 result for FY16, the consolidated revenue grew by 7.7 per cent to reach Rs 3623 crore in the quarter ended June as compared to Rs 3362 crore in Rs 338.70 crore in the year-ago period. The paints segment grew by 6.7 per cent and home improvement segment grew by 665 per cent year on year basis.
Asian Paints is a prominent company dealing in paints. The company's products include a range of ancillaries ( primers, fillers strainer and many more), products for automotive applications, decorative paints,and a product range for industrial purpose.
Recently Asian Paints announced its Q1 result for FY16, the consolidated revenue grew by 7.7 per cent to reach Rs 3623 crore in the quarter ended June as compared to Rs 3362 crore in Rs 338.70 crore in the year-ago period. The paints segment grew by 6.7 per cent and home improvement segment grew by 665 per cent year on year basis. Total expenses increased by 4.8 per cent due to increases in employee cost, depreciation and other expenses by 9.9, 7.3 and 14.89 per cent respectively in April-June quarter compared to the same period of last fiscal.
The EBITDA rose by 22.83 per cent and EBITDA margin contracted to 231 basis points to 18.86 per cent on yearly basis. The other income stepped up by 55.25 per cent to Rs 73.45 crore, other income for the quarter ended 30th June, 2015 is higher mainly on account of sale of company's land at Pondicherry and higher treasury income arising mainly on account of maturity of investments in fixed maturity plans.
The Net profit of the company rose by34.39 per cent to Rs 455.2 crore in Q1FY16 compared to Rs 338.7 crore in Q1FY15, profit was boosted by other income and operational performance driven by lower crude oil prices
."No significant improvement in demand conditions witnessed in the decorative coatings business in India in the Quarter. Lower raw material prices aided gross margins of the business. The growth in the Industrial coatings JV (AP-PPG) was led by a good demand in Industrial Liquid Paints and Powder coatings segment. The Automotive coatings JV (PPG-AP) witnessed subdued demand conditions both in the General Industrial as well as Auto OEM segment. The Auto Refinish segment registered a decent growth. The international business reported satisfactory performance aided by contribution from the units in Middle East and in Ethiopia” said K.B.S. Anand, Managing Director & CEO, Asian Paints Limited.
After the result announcement, today Asian Paints is trading at Rs 832, wherein its share value rose around 2 per cent.
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