Asian Paints in good colours

Asian Paints posted a good set of numbers for Q1FY23, beating all estimates. On a 9% (YoY) rise in consolidated revenue at Rs,8607 crore, the company reported a good 80% jump in net profit of Rs.1036 crore.

Its volume growth registered during the quarter is one of the highest in the last six quarters. The business also registered robust 4-year compounded growth in volume and value terms.

Operating profit rose 8% to Rs1556 crore while margins contracted from 18.3% to 18.08%.

The economic crisis in Sri Lanka led to currency devaluation resulting in recognition of an exceptional item of Rs.24 crore towards exchange loss arising on foreign currency obligations of Causeway Paints Lanka (Pvt.) Limited (Causeway Paints) for the quarter ended 30th June, 2022.

The stock price jumped up 1.5% to hit an intraday high at Rs.3149.95. Its 52-week high stands at Rs.3588.05.