MUMBAI: India's largest paints-maker by revenue Asian Paints has reported a 43 percent rise in consolidated net profit at Rs 994 crore for the quarter to September, driven by strong performance in its decorative, automotive and industrial paints business.
Consolidated net sales increased 6.4 percent to Rs 8,513.7 crore from Rs 8,003 crore a year ago. On a standalone basis, net sales rose 5.8 percent to Rs 7,336 crore, the company said in a statement Wednesday.
Reacting to the second quarter earnings, released on Wednesday, the share price of Asian Paints rose almost 5 percent to Rs 2,787 a unit.
"We saw an improvement in our domestic decorative business with a double-digit volume growth of 10.9 percent and a 6 percent increase in value, despite the challenges posed by an extensive and prolonged monsoons. This growth was driven by our ability to generate demand across urban and rural areas through various regional activations and intense marketing/brand building measures," said Amit Syngle, managing director.
Domestic decorative business registered volume growth of 10.9 percent with revenue growth of 6 percent, helped by improved consumer sentiments, festive demand and broad-based growth across urban and rural centres, he said.
"Growth was further accelerated by enhanced performance in our automotive and industrial protective coatings segments, contributing to an overall 6.7 percent value growth in the domestic coatings business," Syngle said.
International business also registered a robust 9.9 percent growth in volume. On a constant currency basis, the international portfolio delivered revenue growth of 10.6 percent for the quarter, led by key markets in South Asia, the Middle East and Africa, he added.
"Our ongoing efforts to elevate cost efficiencies have delivered positive results, allowing us to increase our profit margins even as we increased investments in our brand and retailing initiatives.
“Though business landscape continues to be challenging yet highly dynamic, we remain committed to strengthen our brand saliency and driving innovation, to deliver sustained performance and create value for all our stakeholders,” he said.