Asian Paints shines on reporting strong Q1FY20 numbers

India’s largest paint producer Asian Paints reported a strong set of numbers amid volatile market conditions. Reacting to the results, the stock of Asian Paints was up more than 3 per cent on Wednesday.

Asian Paints’ consolidated revenue from operation in Q1FY20 grew nearly 16.6 per cent to Rs. 5,130.63 crore from the corresponding quarter of the previous year. Home Improvement business recorded revenue of Rs. 107.84 crore from Rs. 90.96 crore in Q1FY19.

EBITDA during the period grew by around 24.4 per cent yoy to Rs. 1,156.25 crore with a corresponding margin expansion of 140 bps. EBITDA margin for the quarter stood strong at 22.53 per cent. This was led mainly by lower input cost in proportion to revenue.

With better operational performance, the company’ profit after tax (PAT) grew by nearly 18 per cent YoY to Rs. 672.10 crore.

In response to this development, the stock of Asian Paint surges on the bourses, the stock which opened at Rs. 1,430 went up to touch intra-day high of Rs. 1,478.40 post announcement of this result. At 14:23 hours, the stock was trading at Rs. 1,475, up by 3.3 per cent from previous close, on Wednesday.