Asian Paints’ automotive coating segment facing slowdown: Key Q1 takeaways
Revenue from operations jumped 16.6 per cent to Rs 5,130.63 crore from Rs 4,398.59 crore.
The number beat ET NOW's poll estimate of Rs 547 crore. Following the development, the scrip reversed initial losses and traded 1.11 per cent up at Rs 1,444.20 at around 1.43 pm. On the other hand, the benchmark BSE Sensex was down 99 points at 37,884 at around the same time.
Here are the five key takeaways from Asian Paints’ first quarter earnings:
Paint revenue jumps in double digits
Revenue from paint segment increased to Rs 5,022.79 crore in Q1FY19 over Rs 4,307.63 crore in the same period last year. Overall, revenue from operations jumped 16.6 per cent to Rs 5,130.63 crore from Rs 4,398.59 crore. Profit before depreciation, interest, tax and other income climbed 24.4 per cent to Rs 1,156.25 crore from Rs 929.70 crore a year ago.
Automotive coating business hurt
The decorative business segment in India registered a high double-digit volume growth and delivered strong performance across regions, according to Asian Paints.
The Automotive coatings JV (PPG-AP) business was affected by the severe slowdown being witnessed in the automobile industry. Even the Industrial Coatings JV (AP-PPG) business was impacted by demand slowdown, said KBS Anand, Managing Director and CEO, Asian Paints.
Benign raw material prices, however, supported the margins for the entire coatings business, he added.
Challenges in International business
In the international operations, key units such as Egypt and Sri Lanka continued to witness challenging business conditions impacting the overall performance, the company said in a release.
Expenditure of the company jumped 15.67 per cent to Rs 4193.76 crore during the quarter under review. The figure stood at Rs 3,625.66 crore in the same period last year.
Earnings per share increased to Rs 6.83 from Rs 5.81 on yearly basis. The figure stood at Rs 4.92 in the preceding quarter ended March 2019.