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Asian Paints reported their financial result for the quarter ended on December 31, with robust growth in EBITDA and revenue, but a weaker performance from the operational margin. Asian paints posted a net profit of Rs 647 crores, a 14 per cent increase year-on-year basis.
The paints manufacturer’s consolidated revenue during the third quarter of the current fiscal grew by 24.3 per cent to Rs 5,294 crores. KBS Anand, Managing Director & CEO, Asian Paints said: “The decorative business segment in India registered a high double digit volume growth and delivered strong performance across regions.”
The company reported EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 1,043.2 crores, posting a 17 per cent YoY surge. The margin, however, during the quarter under review contracted to 19.7 per cent versus 20.9 per cent in Q3 FY18. Anand said, “Margins remained under pressure on account of the higher raw material prices.”
Cost of materials during the Q3 FY19 surged 24.4 per cent YoY. Anand also added that the automotive coatings JV (PPG-AP), witnessed subdued growth in the auto OEM segment while the industrial coatings JV (AP-PPG) continued to witness good growth in the protective coatings – dealer segment and the powder segment.
