Asian Paints Q4 Results: Profit Falls Sequentially But Beats Estimates, Margin Contracts

Asian Paints Ltd.’s fourth-quarter profit fell sequentially but beat estimates as a rebound in demand continued.

The company didn't disclose sequential volume growth. Domestic decorative business volumes jumped 48% over a year earlier, led by a robust growth in the premium and luxury product range, the company said. That was also aided by a lower base as several states had started announcing restrictions in March last year before a complete lockdown.

“We have seen a very strong quarter aided by good demand across rural and urban areas at the country level," Amit Syngle, managing director and chief executive officer at Asian Paints, said referring to year-on-year growth.

"On the heels of a healthy Q2 and Q3 recovery, this quarter saw exceptional growth across businesses and consumer segments,” he said. “This quarter the performance has been outstanding, discounting even the slightly lower base last year same quarter.”

Syngle said while inflationary trend in raw material prices was worrying, better sourcing and cost optimisation helped negate its impact. “The current business environment is unprecedented, and we would continue to strongly engage with all our stakeholders taking all necessary measures to tackle this uncertainty.”

Shares of Asian Paints pared gains of as much as 1.28% to close flat at Rs 2,556 apiece compared with a 1.0% decline in Nifty 50.