Asian Paints down 7 percent post Q2 results
Published On: Thursday, October 21, 2021 | By: Team KnowMyStock
Shares of Asian Paint were down 7 percent, hitting an over two-month low of Rs 2,961 on the BSE in Thursday’s intra-day trade, after the company, reported a 29 percent fall in the net profit to Rs 605.2 crore in Q2FY22 as against Rs 852 crore in the same quarter a year ago, while its revenue jumped by 32.6 percent to Rs 7096 crore in the July-September quarter of FY22 versus Rs 5350 crore during the same quarter in FY21. The company’s bottom line performance missed expectations of all eight brokerages polled by ETMarkets.com.The company’s board also approved an interim dividend of Rs 3.65 per share at its meeting held earlier today. The decline in the company’s bottom line was largely due to a sharp spike in expenses during the quarter. Asian Paints’ total expenses jumped 49 percent on-year to Rs 6,418.2 crore led by a 73 percent rise in the cost of raw materials.
"Profit before depreciation, interest, tax and other income (PBDIT) margin declined to 12.73 per cent from 23.64 per cent in Q2FY21. Steep inflation seen in raw material prices, since the beginning of this calendar year, has been phenomenal and has impacted gross margins across all businesses in the quarter," Asian Paint said.
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