BackAsian Paints touches m-cap of ₹3 tn in a first
The domestic decorative business more than doubled its volume and delivered stellar revenues over the lower base of last year, which had suffered from the first nationwide lockdown
PremiumMUMBAI : Asian Paints Ltd hits ₹3 trillion market capitalization on Tuesday after its shares hit a fresh record high with gaining over 14% so far this year.
The stock hit an all-time high of ₹3,178 on BSE and rose as much as 6.66%. At 2.50 pm, the scrip was trading at ₹3,144, up 5.53% from its previous close. So far this year it rose 14.67%.
For the June quarter, the company reported a consolidated net profit of ₹574.30 crore, up 161% from ₹219.61 crore a year ago. Revenue climbed 91% to ₹5,674.97 crore. Ebitda (earnings before interest, tax, depreciation, and amortization) rose 94% to ₹1,000.65 crore.
The domestic decorative business more than doubled its volume and delivered stellar revenues over the lower base of last year, which had suffered from the first nationwide lockdown. The business registered strong compounded average growths in value and volume in comparison with Q1FY20, which was a normal quarter, indicative of a strong consistent trajectory, the company said in a release to exchanges.
The industrial business and the home improvement business also doubled its revenue on last year’s low base. International business, which had seen some continuity of business in the first quarter of last year, registered strong double digit revenue growth.
"This has been a resilient performance across all businesses despite the challenges posed by the second covid wave across markets, which disrupted business continuity from the second fortnight of April 2021. We registered strong growths in April 2021 and a robust resounding rebound in June 2021, post May 2021 which was impacted in a big way," said Amit Syngle, managing director and chief executive officer of Asian Paints.
Steep inflation in raw material prices in the last quarter of the previous financial year and again in this quarter saw gross margins impacted across all businesses despite the price increases taken to mitigate this pressure to an extent. However, all businesses showed healthy profits compared with first quarter of last year and net profit more than doubled at both, standalone and consolidated levels" Syngle added.
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