Asian Paints’ net profit dips 29% to Rs 605 crore in Q2 FY22

 Asian Paints has reported a 29% decline in its consolidated net profit to Rs 605.17 crore in the quarter ended September 30, 2021. The company had posted a consolidated net profit of Rs 851.90 crore in the corresponding quarter of last fiscal, the company said in a BSE filing.

The company’s total income stood at Rs 7,234.21 crore in Q2 FY22, a growth of 33 per cent from Rs 5,432.86 crore it registered in the similar quarter previous year.

“The domestic decorative business continued to move ahead on its high growth trajectory with an unprecedented 34% volume growth in the quarter and a strong compounded growth rates over the last two years,” said Amit Syngle managing director and CEO of the company.

“The home improvement business continued to scale up in a significant manner registering its highest quarterly revenues, aided by strong alignment with the projects business,” he added.

Asian Paints said its total expenses in the second quarter stood at Rs 6,418.17 crore as compared with Rs 4,299.12 crore in the same period last fiscal. Of this, cost of materials consumed was at Rs 4,570.53 crore.

“Steep inflation seen in raw material prices, since the beginning of this calendar year, has been phenomenal and has impacted gross margins across all businesses in the quarter. We have taken a series of price increases and would look at further price increase to mitigate the impact of this persistently high inflation and are confident that we should be able to turn this around strongly in the coming quarter,” said Syngle.

In a separate filing, the company informed that the board of directors have appointed Milind Sarwate as an additional and independent director for a period of five years with effect from October 21, 2021.

The board of directors also approved payment of interim dividend of Rs. 3.65 per equity share of the face value of Re 1 each for the financial year ending March 31, 2022.

On September 2, 2021, the National Company Law Tribunal (NCLT), Mumbai approved scheme of amalgamation of Reno Chemicals Pharmaceuticals and Cosmetics, wholly-owned subsidiary of the parent company, with the parent company, it said in the regulatory filing.