India's largest paint manufacturing company, Asian Paints Ltd., met analyst estimates both on the topline and bottomline in the July-September quarter.
Net profit rose 18.1 percent to Rs 495 crore from Rs 419 crore in the same quarter last year, according to the company's filing on the Bombay Stock Exchange. The Bloomberg consensus estimate stood at Rs 503 crore.
Revenue or the net income increased 10.2 percent to Rs 4,232 crore from Rs 3,840 crore in the same quarter last year, beating analyst estimate of Rs 4,127 crore.
Earnings before interest, taxes, depreciation and amortisation grew 16.9 percent to Rs 712 crore from Rs 609 crore year-on-year. The figure however missed analyst estimate of Rs 773 crore. EBITDA margins improved 90 basis points to 16.8 percent as against 15.9 percent.
Gross margins expanded by 180 basis points despite the 12 percent rise in the cost of raw materials. Cost of raw materials as a ratio of the revenue stood at 51 percent versus 50 percent one year ago on account of increase in crude-linked material costs.
The company's international business saw a good pick-up in demand in Nepal, Fiji and certain areas in the middle-east, KBS Anand, managing director and CEO said in the regulatory filing.
The decorative business segment in India, registered double-digit growth in this quarter. The kitchen business (Sleek) and bath business (ESS ESS), in the home improvement category registered good growth in the current quarter.KBS Anand, Managing Director and CEO, Asian Paints
Shares of Asian Paints Ltd. rose as much as 2.73 percent to Rs 1,158 before ending the day with gains of 2.27 percent at Rs 1,153.
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