Asian Paints on Tuesday reported a 52 per cent increase in consolidated net profit to Rs 1,574.84 crore in the June quarter, led by a double-digit volume and value growth in decorative business as well as softening of material prices.
The company had posted a net profit of Rs 1,036.03 crore during the April-June period of 2022-23.
The consolidated sales rose 6.7 per cent to Rs 9,153.79 crore in the first quarter of this fiscal. In the year-ago period, the same stood at Rs 8,578.88 crore, Asian Paints said in a regulatory filing.
Asian Paints' total expenses were almost flat at Rs 7,305.09 crore in the latest June quarter compared to Rs 7,287.84 crore in the corresponding period a year ago.
Its total income during the quarter was at Rs 9,379.38 crore, an increase of 7.73 per cent.
During the June quarter, Asian Paints reported a "double-digit volume and healthy value growth in decorative business" and its industrial business saw a "double-digit revenue growth trajectory," the filing said.
The company saw its international sales dipping by 1.4 per cent to Rs 695.1 crore. However, in constant currency terms, sales went up 3.8 per cent.
Though the international business was supported by good deliveries from the Middle East, continued macroeconomic challenges and adverse forex conditions in Asian markets led to an overall subdued growth.
"Overall, we have recorded significant improvement in margins, both sequentially and on a year-on-year basis, aided by strong efforts in driving operational, formulation and sourcing efficiencies and supported by easing inflation in raw material prices," Asian Paints Managing Director & Chief Executive Officer (CEO) Amit Sygle said.
The domestic decorative business registered a double-digit volume growth and relatively healthy value growth, coming on a high base of the previous year, he said.
"Both auto OE (Original Equipment) and the general industrial coating businesses achieved a strong double-digit revenue growth, led by growth in the protective & powder coatings segment," Sygle added.
On the home decor front, categories such as fabrics, decorative lighting, Unplasticised Polyvinyl Chloride (UPVC) doors and windows maintained their high-growth trajectory, the filing said.
However, kitchen and bath business segments were sluggish, he said, adding that overall, the quarter saw significant improvement in margins, both sequentially as well as on a year-on-year basis.
"Looking ahead, we remain focused on pursuing growth and are confident about a robust festival season ahead," the CEO said.
Shares of Asian Paints declined 4.01 per cent to close at Rs 3,400.10 apiece on the BSE.