Asian Paints hits all-time high post Q4 results

Asian Paints hit an all-time high of Rs 1,279, up 5% on the market in early morning trade, after the decorative paint business reported a double digit volume growth in March 2018 quarter (Q4FY18) with improved demand conditions. The stock surpassed its previous high of Rs 1,261 touched on September 14, 2017 on the BSE in intra-day trade.
Net profit of the company increased 4.6% to Rs 4.81 billion in Q4FY18 as compared to Rs 4.59 billion in the previous corresponding period. Revenue from operations grew 14.1% to Rs 44.92 billion over the previous year quarter.

“Good demand conditions in the auto OEM and general industrial business segment led to improved performance of the automotive coating JV (PPG-AP). The performance of industrial coating JV (AP-PPG) saw an improvement in the current quarter based on good growth registered in the powder coating segment,” said K.B.S. Anand, Managing Director & CEO, Asian Paints.

Asian Paints 4QFY18 operating performance was healthy and slightly better than our expectations. Domestic paint volumes grew at estimated 11% YoY, which was an improvement over the previous quarters of FY18. EBIDTA (EBITDA (Earnings before interest, tax, depreciation and amortization) margin expanded 62bps YoY due to lower pressure on gross margins and control on discretionary expenditure, analysts at Antique Stock Broking said in result preview.