Asian Paints Releases Q3, 9M-FY2020 Results

Asian Paints Ltd announced its financial results for the quarter and nine months ended Dec. 31, 2019.

“The decorative business segment in India registered a low double-digit volume growth, impacted by the slowdown in the overall economy,” said K.B.S. Anand, managing director & CEO, Asian Paints Limited. “The automotive coatings JV (PPG-AP) business continued to be impacted by the downturn in the automobile industry while the Industrial Coatings JV (AP-PPG) business saw some demand pick-up in the Protective Coatings segment. Benign raw material prices benefited the entire coatings business.”

Asian Paints Consolidated Results, Q3-FY’20
For the quarter ended Dec. 31, 2019, on the consolidation of accounts of the subsidiaries and associates of Asian Paints – Revenue from operations has increased by 3% to ₹5,420.28 from ₹5,263.04. Profit before depreciation interest and tax (PBDIT) for the group increased by 7.7% to ₹1,189.39 from ₹1,104.42. Profit before tax (PBT) increased by 8.4% to ₹1,057.28 from ₹975.01. Net profit after non-controlling interest increased by 20.2% to ₹764.43 as compared to ₹635.83 in the previous corresponding period.

For the nine months ended Dec. 31, 2019, Asian Paints group revenue from operations has increased by 9.2% to ₹15,575.66 from ₹14,256.95. PBDIT for the group has increased by 14.7% to ₹3,302.15 from ₹2,879.13. Profit before tax (PBT) increased by 14.2% to ₹2,934.77 from ₹2,570.55. Net profit after non-controlling interest increased by 33.2% to ₹2,243.28 as compared to ₹1,684.27 in the previous corresponding period.

Further, the net assets and net liabilities as of March 31, 2019, have increased by ₹616.77  and ₹667.71 respectively.

For the quarter ended Dec. 31, 2019, revenue from operations increased by 2.7% to ₹4,656.88 from ₹4,536.05. PBDIT for the quarter increased by 7.8% to ₹1,171.9 from ₹1,037.02. Profit before tax increased by 8.1% to ₹1,017.42 as compared to ₹941.43 in the previous corresponding period.

For the nine months ended Dec. 31, 2019, revenue from operations increased by 9.5% to ₹13,315.08  from ₹12,156.46. PBDIT for the period increased by 14.8% to ₹3,081.21 from ₹2,684.9. Profit before tax increased by 13.8% to ₹2,796.77 as compared to ₹2,457.80 in the previous corresponding period.

Further, the net assets and net liabilities as of March 31, 2019, have increased by ₹530.52  and ₹575.12 respectively due to the implementation of Ind AS 116.

The parent and some group companies have chosen to exercise the option of a lower tax rate of 25.17% (inclusive of surcharge and cess) under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019.

The full impact of this change has been recognized in tax expense for the quarter and six months ended 30th Sept. 30, 2019, which includes the reversal of deferred tax expenses of ₹106.63 on account of re-measurement of deferred tax liability as at March 31, 2019. Current tax and deferred tax expenses for the period ended Dec. 31, 2019, have been recognized basis the revised effective tax rate.