Asian Paints Ltd.'s quarterly profit fell as the lockdown to contain the novel coronavirus pandemic hurt demand.
Net profit of the paintmaker fell 2.1% year-on-year to Rs 461.9 crore in the quarter ended March, according to an exchange filing. That compares with the Rs 512-crore consensus estimate of analysts tracked by Bloomberg. The company's revenue fell 7.1% to Rs 4,636 crore. Analysts had pegged the top line at Rs 4,812 crore.
Indian consumers had cut discretionary spending even prior to the Covid-19 pandemic. And the outbreak halted all economic activity barring essential services starting the last week of March, crimping demand for industrial and household paints. That even offset the benefit cheaper crude-linked raw materials. While paintmakers expect to recoup the lost demand in the ongoing quarter ending June as India eases isolation curbs, a complete recovery may still be some time away.
Asian Paints' operating margin, however, widened to 18.5% compared with 17.8% a year ago. The company's operating profit fell 3% to Rs 860 crore, compared with the Rs 884-crore estimate.
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Shares of Asian Paints closed 2.23% higher before the results were announced. That compares with a 1.55% rise in the benchmark Nifty 50 Index.
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