Asian Paints Ltd’s market capitalization exceeded Rs 3 trillion mark on Tuesday, after its shares reached to a new high, gaining more than 14 percent this year. Asian Paints’ stock reached an all-time high of Rs 3,178 on the BSE after surging more than 6.5 percent intraday. Following the strong Q1 numbers stock rose to an all time high even after Sensex plunges more than 500 points.
Asian Paints‘ net profit more than doubled year on year to Rs 574.3 crore from Rs 219.6 crore (YoY). The company reported a consolidated net profit of Rs 574 crore, an increase of 161 percent year on year (YoY).
Profit figures increased significantly owing to the reduced base of last year.
However, the profit figure fell short of market expectations, with analysts polled by CNBC-TV18 expecting a profit of Rs 721 crore for the quarter.
Revenue for the quarter increased 91.1 percent year on year to Rs 5,585.4 crore, up from Rs 2,922.7 crore in Q1FY21. EBITDA increased by 88.7% year on year to Rs 913.6 crore from Rs 484.3 crore, with an EBITDA margin of 16.4 percent up from 16.6 percent.
Amit Syngle, Managing Director & CEO of Asian Paints, stated, “Over last year’s lower base, which had suffered from the first nationwide lockdown, the domestic decorative business more than doubled its volume and earned exceptional sales.” The business saw strong compounded average growth in value and volume in comparison to Q1FY20, which was a normal quarter, indicating a strong consistent trajectory.”
Despite the challenges posed by the second Covid wave across markets, which disrupted business continuity beginning in the second fortnight of April 2021, all businesses performed well.
“We had a great rung of growth in April 2021, followed by a strong return in June 2021, following a significant drop in May 2021. As we move forward, we are confident in our organization’s capacity to capitalize on the predicted improvement in business conditions,” he said.