Asian Paints reports Q4 PAT at Rs 850 cr

10 May 2022 , 02:31 PM

Consolidated sales increase 20.6% to Rs 7,889.94 crore in Q4 March 2022 over Q4 March 2021. Profit before exceptional items and tax increased 12.8% to Rs 1,304.88 crore from Rs 1,156.31 crore. PBDIT [profit before depreciation, interest, tax, other income, and exceptional items] (before share in profit of associates) increased 9.5% to Rs 1,443.29 crore from Rs 1,318.26 crore. PBDIT margin improved from 12.9% in Q2 to 18.3% in Q4. For the year, Asian Paints consolidated sales increased 34.6% to Rs 28,923.48 crore from Rs 21,485.20 crore in the year ended March 2021. Profit before exceptional items and tax marginally decrease to Rs 4,303.42 crore in FY22 from Rs 4,304.35 crore in FY21. PBDIT (before share in profit of associates) decreased 1.1% to Rs 4,803.61 crore from Rs 4,855.60 crore, due to lower profits in international operations on account of higher inflationary conditions, despite a value growth of 16.3% in international operations. The board recommended a final dividend of Rs 15.50 per equity share. The company has re-assessed expected timing of receipt of cashflow towards subsidy receivable from the State Governments. Accordingly it has provided for time value of money in the standalone and consolidated financial results for the quarter and year ended 31 March 2022. Consequently an amount of Rs 53.73 crore computed under expected credit loss method is recognized as an exceptional item towards subsidy receivable for earlier years. Subsidy income under other operating revenue is lower by Rs 31.10 crore. This has resulted in reduction of profit for the quarter and year ended 31 March 2022 to that extent. The company is confident about the ultimate realisation of the dues from the State Governments. The current economic crisis in Sri Lanka has led to currency devaluation. This has resulted in recognition of exceptional item of Rs 48.50 crore towards exchange loss arising on foreign currency obligations of Causeway Paints Lanka (Causeway Paints) in the consolidated financial results for the quarter and year ended 31 March 2022. Consequent to the currency devaluation, foreign currency translation loss of Rs 139.87 crore is recognized in the Other Comprehensive Income in consolidated financial results for the quarter and year ended 31st March 2022. The Group has made an assessment of the fair value of investment made in Causeway Paints taking into account the past business performance, prevailing business conditions and revised expectations of the future performance considering ongoing economic crisis in Sri Lanka. Accordingly, the Group has recognized an impairment loss of Rs 13.47 crore on the Goodwill on Consolidation, recognized on acquisition of Causeway Paints. This impairment loss is disclosed as an exceptional item in the consolidated financial results for the quarter and year ended 31st March 2022. Asian Paints is Indias leading paint company and ranked among the top ten Decorative coatings companies in the world.. Asian Paints is also present in the Home Improvement and D?cor space in India. Shares of Asian Paints were up 2.97% at Rs 3099 on the BSE. Powered by Capital Market – Live News