Asian Paints Q3 results show revenue growth but grapple with rising inflation!

The sharp hike in the raw material prices impacted the operating margins which have affected the bottom line as well.

Asian Paints on Thursday reported a growth of 25 per cent in topline at Rs 8527.24 crore from Rs 6788.47 crore reported in the same quarter last year. But the company failed to translate it into the bottom line with a net profit of Rs 1,016.33 crore for the December quarter, a fall of 18 per cent from Rs 1,240.10 crore reported in the same quarter last year. 

The sharp hike in the raw material prices impacted the operating margins which have affected the bottom line as well. 

However, on a sequential basis, the net revenue was up by 20.17 per cent from the levels of Rs 7096.01 crore and net profit also showed a growth of 70.82 per cent on a sequential basis. The company was able to transfer the burden of raw material cost to some extent in the latter part of the quarter, mitigating the effects of inflation on a sequential basis. 

“The domestic decorative business registered yet another strong double-digit growth performance, five quarters in a row, with an 18% volume growth, on a strong base of the previous year. The industrial coatings business also registered a robust double-digit revenue growth especially in the Protective Coatings segment," stated Amit Syngle, Managing Director and CEO (Asian Paints).

The shares of Asian paints closed at Rs 3303 a piece with a gain of 0.69 per cent today.