Asian Paints Q1 results: Net profit plunges 67% YoY; paints maker says June saw demand recovery

Asian Paints on Friday said its consolidated profit for June quarter plunged 66.7 per cent year-on-year (YoY) to Rs 218.45 crore from Rs 655.44 crore in the same quarter last year.

Revenue from operations, the company said, tanked 42.7 per cent to Rs 2,922.66 crore for the quarter compared with Rs 5,104.72 crore in the year-ago quarter.

Profit before tax (PBT) fell 70.2 per cent for the quarter to Rs 305.76 crore from Rs 1,025.24 crore, the paints maker said.

Managing Director & CEO Amit Syngle said that the decorative business segment witnessed improving business conditions in May and June after a complete washout in April due to extended lockdown.

The business registered a healthy double-digit volume growth in the month of June to end the quarter on a promising note, Syngle said.

"The other business segments in India, including the two industrial coatings business and both the segments in the home improvement category also witnessed improving trends in June, albeit at a lower pace," Syngle said.

The company said its international business portfolio did well, supported by favourable operating conditions in markets in Middle East and Africa.

"Profitability across businesses was well supported by the softer raw material prices and the various cost control measures being actively pursued by the management,” the company said.