Mumbai: Asian Paints missed analysts’ forecasts as the country’s largest paints maker reported a 2.1 per cent decline in net profit after non-controlling interest in the quarter ended March.

The company said its net profit after non-controlling interest decreased by 2.1 per cent to Rs 461.89 crore as compared to Rs 471.65 crores in the previous corresponding period.

An ET Now poll had estimated the figure at Rs 515 crore.

Asian Paints’ revenue from operations decreased by 7.1 per cent to Rs 4,635.59 crore from Rs 4,991.50 crore a year ago.

Here are the key takeaways from Asian Paints’ Q4 results:

PBDIT/PBT drop

The company’s profit before depreciation interest and tax (PBDIT) for the group decreased by 3 per cent in the quarter to Rs 859.62 crore from Rs 886.41 crore a year ago, while its profit before tax (PBT) decreased by 5.7 per cent to Rs 699.22 crore from Rs 741.35 crore in the same period a year ago.

Lockdown impact on decorative business segment
Amit Syngle, Managing Director & CEO, Asian Paints said the loss of sales due to the lockdown in March impacted the decorative business segment in an otherwise strong quarter with double-digit volume growth in the first two months of the quarter.

However, 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, he added.

Automotive, industrial coatings hit by auto slowdown
Syngle said 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.

Home improvement hurt by realty slowdown
Both the segments in the home improvement category viz. the kitchen (Sleek) and bath (Ess Ess) business, continued to be impacted by the slowdown in the real estate construction space, Syngle said.

Mixed international business
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.

Lower input costs help
Profitability across businesses was well supported by the benign raw material prices and cost optimisation efforts, said Syngle.



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