Asian Paints rallies 7% after quarter 1 result
Published On: Tuesday, July 20, 2021 | By: Team KnowMyStock
Shares of Asian Paints rallied by 7 percent at Rs 3,178, hitting a fresh record high on the BSE in the intra-day trade on Tuesday, after the company's net profit more than doubled to Rs 574.3 crore against Rs 219.6 crore year-on-year. The Company's consolidated profit after tax (PAT) was Rs 574 crore for the quarter ended June 2021 (Q1FY21) on the back of a strong operational income. The company had posted a PAT of Rs 218.45 crore in the previous corresponding period (Q1FY20). However, the profit figure was below market expectations as a CNBC-TV18 poll of analysts had expected profit at Rs 721 crore for the quarter. Revenue jumped 91.1 percent YoY to Rs 5,585.4 crore for the said quarter against Rs 2,922.7 crore in Q1FY21.“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,” said Amit Syngle, managing director and chief executive officer at Asian Paints.
Asian Paints said that both the industrial paints and home decorative paints business saw strong year-on-year growth in volumes whereas the international division saw double-digit revenue growth.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. Steep inflation in raw material prices in the last quarter of 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," added Syngle.
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