Asian Paints Q3 net down -17.98% yoy at Rs1,016cr on higher input cost inflation

20 Jan 2022 , 04:54 PM

Asian Paints reported 25.61% yoy growth in total revenues for the Dec-21 quarter on consolidated basis at Rs8,527cr. On a sequential basis, the revenues were up by 20.17%.

During the December 2021 quarter, the company witnessed solid growth across sits paints division and the much smaller home improvement vertical. In terms of volumes, this was the fifth successive quarter of growth in volumes with the volumes in the latest quarter growing by 18%.

The company has passed on some cost through rate hikes, the but the combination of supply chain constraints and higher crude prices impacted input costs.

For the Dec-21 quarter, the operating profits were down by -15.39% on a yoy basis. The sharp fall in the operating profits was largely on account of a very sharp spike in raw material and inventory costs.

Crude is a key input for paints. The EBITDA for the quarter fell by -13.7% to Rs1,542cr. The automotive coatings business was also impacted by the slowdown in auto sales. Operating margins fell sharply from 23.49% in Dec-20 quarter to 15.82% in the Dec-21 quarter. Operating margins are nearly 700 bps higher sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was down -17.98% yoy at Rs1,016cr on the back of a sharp spike in operating costs getting transmitted to the bottom line too. Asian Paints currently has 26 manufacturing facilities and its products reach out to over 60 different countries.

PAT margins fell from 18.24% in the Dec-20 quarter to 11.91% in the Dec-21 quarter. PAT margins are higher sequentially. The input cost impact was seen last quarter for the first time. However, sequentially, the numbers are surely better.

Financial highlights for Dec-21 compared yoy and sequentially

	Asian Paints Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 8,527.24	₹ 6,788.47	25.61%	₹ 7,096.01	20.17%
Operating Profit (Rs cr)	₹ 1,349.36	₹ 1,594.72	-15.39%	₹ 701.70	92.30%
Net Profit (Rs cr)	₹ 1,015.69	₹ 1,238.34	-17.98%	₹ 595.96	70.43%
Diluted EPS (Rs)	₹ 10.59	₹ 12.91		₹ 6.21
OPM	15.82%	23.49%		9.89%
Net Margins	11.91%	18.24%		8.40%