Asian Paints on Wednesday reported a 15.8 per cent increase in consolidated net profit at Rs 3,139.29 crore for financial year 2020-21. Revenue from operations rose 7.4 per cent to Rs 21,712.79 crore. On a standalone basis, the paintmaker's net profit increased 15 per cent to Rs 3,052.51.
For January-March quarter, the company's net profit rose 84.5 per cent to Rs 852.13 crore, while revenue from operations grew 43.5 per cent to Rs 6,651.43 crore. On a standalone basis, net profit rose 81.3 per cent to Rs 819.60 crore during the quarter.
"We have seen a very strong quarter aided by good demand across rural and urban areas at the country level. On the heels of a healthy Q2 and Q3 recovery, this quarter saw exceptional growth across businesses and consumer segments. This quarter the performance has been outstanding, discounting even the slightly lower base last year same quarter," Asian Paints MD and CEO Amit Syngle said.
The company's domestic decorative business registered a 48 per cent volume growth in the quarter, led by a robust growth in the premium and luxury product range.
The home improvement business registered record sales for the quarter, aided by the foray into home decor business, while industrial coatings business also delivered a robust performance, particularly in protective coatings and refinish segments supported by the uptick in the industrial activity, Syngle added.
International business recorded double-digit volume growth, led by good growth in Asia and Middle East. "The huge inflationary trend in raw material prices has been worrying, however, its impact on profitability has been negated with some path-breaking work on sourcing and cost optimisation. The current business environment is unprecedented, and we would continue to strongly engage with all our stakeholders taking all necessary measures to tackle this uncertainty," Syngle said.
The company's board also recommended a final dividend of Rs 14.50 per equity share. Shares of Asian Paints on Wednesday closed almost flat at Rs 2,556.10 on the BSE.