Asian Paints net zooms 62% to Rs 1,238 cr

Asian Paints on Thursday reported 62 per cent year-onyear jump in its net profit to Rs 1,238 crore for the October to December quarter.

The country's largest paint maker had reported a net profit of Rs 764 crore for the corresponding quarter last fiscal year (Q3 FY20).

Profit before tax rose by over 60 per cent to Rs 1,697 crore from Rs 1,057 crore in the year-ago period.

The company's other income rose to Rs 97.9 crore from Rs 69.8 crore a year ago. In Oct-Dec, total expenditure, including finance cost, was at Rs 5,215 crore compared with Rs 4,452 crore a year ago. Finance cost was lower at Rs 21. crore from Rs 24 crore a year ago. Asian Paints' operating margin expanded sharply to 26.34% in Oct-Dec from 21.94% a year ago. The company's tax outgo for the December quarter was at 4.31 bln rupees as against 2.78 bln rupees a year ag Managing Director and CEO Amit Syngle said the domestic decorative business delivered 30 per cent volume growth, led by a strong performance in premium and luxury portfolios.

Demand conditions continued to exhibit strong recovery across business segments spread over most regions.

"The home decor foray of Asian Paints got a big fillip from a strong performance of the home improvement business. The industrial coatings business delivered a robust performance, particularly in protective coatings and auto businesses which rebounded in a big way, benefited by resurgence in the industrial activity," he said.

Syngle said the company's international business clocked double-digit volume growth, led by good growth in Asia and the Middle East.