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Asian Paints - Strong strokes in Q4, but challenges ahead - The Hindu BusinessLine


BL Research Bureau
Asian Paints, the largest paint maker in the country delivered a good performance in its recent March quarter earnings, driven by strong sales across segments. With economy fully opened (until March this year post which localised lockdowns were implemented), the pick-up in real estate and industrial demand gave a boost to the company. In Q4 FY21, it reported a revenue growth of 43 per cent to ₹6,651 crore when compared to same period last year. Despite the increase in input costs, Asian Paints reported solid earnings growth. Its profit grew 81 per cent to ₹869 crore, partially due to benefit of base effect (Q4 FY20 impacted by lockdown). However, on a sequential basis, while the revenue declined marginally by 2 per cent between March and December quarter of FY21, net profit declined by 31 per cent due to impact of higher raw material costs. Asian Paints stock at ₹ 2,560 (at market close on May 12) trades at 78 times its trailing twelve-month earnings. ....

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