Asian Paints Q2 profits dip 29%; high input costs eat into margins
Paints and coatings major Asian Paints on Thursday reported a 29% year-on-year dip in consolidated profit for the July-September period even as revenue grew by 33% as high input costs dented the market leader’s margins.
The company reported a consolidated profit of Rs 605 crore for the quarter compared to Rs 852 crore last year. Revenue grew to Rs 7,096 crore compared to Rs 5,350 crore a year ago.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 28% on-year to Rs 905 crore while EBITDA margin narrowed by almost 11 percentage points to 12.75%.
Even as the margins took a beating, the company’s business continued to grow significantly. Both decorative paints and industrial coatings businesses grew by double digits during the quarter. However, international business was a mixed bag with good growth in the South Asian markets while markets in the Middle East and Africa were sluggish.
The company declared an interim dividend of Rs 3.65 per share. Its board also appointed Milind Sarwate as an additional and independent director for five years starting Thursday
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