NEW DELHI: Decorative paints maker Asian Paints has reported an 81 per cent year-on-year growth in profit for the January-March quarter as demand recovery continued across urban and rural areas, but particularly on a low base effect.
Net profit, however, fell 31 per cent to Rs 870 crore quarter-on-quarter. Revenues was up 43.5 per cent to Rs 6,651.4 crore from a year ago. Volume growth for the quarter stood at 48 per cent, led by the premium and luxury segments.
Earnings before interest, tax, depreciation and amortisation (Ebitda) grew by 53 per cent year-on-year to Rs 1,318 crore, while Ebitda margins improved by 127 basis points to 19.8 per cent. However, it was lower than analysts’ estimates.
The miss was due to higher raw material costs which remains a mattern of concern. “The huge inflationary trend in raw material prices has been worrying, however, its impact on profitability has been negated,” said its MD and CEO Amit Syngle.