Asian Paints announced its financial results for the quarter and six months ended Sept. 30, 2019.

“The decorative business segment in India registered a high double digit volume growth, though lower than that witnessed in the first quarter. Automotive coatings JV (PPG-AP) business continued to be impacted by the slowdown in the automobile industry and even the Industrial Coatings JV (AP-PPG) business was impacted by demand slowdown. The entire coatings business, however, benefited from the benign raw material price environment,” said K.B.S. Anand, managing director & CEO, Asian Paints Limited. “International operations performed better than the previous quarter with improvement in the key units of Nepal and Egypt. Both the segments in the Home Improvement category viz. the Kitchen (Sleek) and Bath (Ess Ess) business, were impacted by the slowdown in the real estate construction space.”

Asian Paints Consolidated Results, Q2-FY’20
For the quarter ended Sept. 30, 2019, on consolidation of accounts of the subsidiaries and associate of Asian Paints – Revenue from operations has risen by 9.4 percent to ₹5,050.66 from ₹4615.49.

Profit before depreciation, interest, tax and other income (PBDIT) for the group increased by 13 percent to ₹954.82 from ₹844.70. Profit Before Tax (PBT) increased by 13.9 percent to ₹852.25 from ₹748.19. Net Profit after Non-controlling Interest (from continuing operations) increased by 67.5 percent to ₹823.41 as compared to ₹491.58  in the previous corresponding period.

The group has implemented new Indian Accounting Standard 116 (‘Ind AS 116’), Leases, with effect from April 1, 2019. The group has implemented the standard by adopting the full retrospective approach. Accordingly, the Consolidated Financial results for the quarter ended Sept. 30, 2019 and all the presented comparative periods are in compliance with Ind AS 116. Consequently, lease rental paid are no longer recognized as other expenses/employee cost. Instead, depreciation on the right of use assets and finance costs on lease liability are recognized in the financial statements. This has no impact on the gross margins earned by the group.

Asian Paints Consolidated Results, H1-FY’20
For the six months ended Sept. 30, 2019, Asian Paints Group Revenue from operations has increased by 12.9 percent to ₹10,155.38 from ₹8,999.31. Profit before depreciation interest and tax for the group has increased by 19 percent to ₹2,112.76 from ₹1,774.7. Profit Before Tax increased by 17.7 percent to ₹1,877.49 from ₹1,595.54. Net Profit after Non-controlling Interest (from continuing operations) increased by 41.1 percent to ₹1,478.85 as compared to ₹1,048.44 in the previous corresponding period.

For the quarter ended Sept. 30, 2019, Revenue from operations increased by 9.3 percent to ₹4,278.04 from ₹3,914.17. PBDIT for the quarter increased by 12.4 percent to ₹873.44 from ₹777.3. Profit Before Tax increased by 12 percent to ₹793.04 as compared to ₹708.25 in the previous corresponding period.

For the six months ended Sept. 30, 2019, Revenue from operations increased by 13.6 percent to ₹8,658.20 from ₹7,620.41. PBDIT for the period increased by 19.1 percent to ₹1,963.3 from ₹1,647.89. Profit Before Tax on a standalone basis increased by 17.3 percent to ₹1,779.35 as compared to ₹1,516.37 in the previous corresponding period.