Asian Paints Beats Q1 Estimates

Asian Paints Beats Q1 Estimates

July 29 (Reuters) – India’s Asian Paints reported a first-quarter profit rise on Wednesday that beat analysts’ estimates as a series of ​hefty price hikes helped the country’s largest paint maker ‌navigate soaring raw material costs, sending shares up 4.5% after results.

Asian Paints has been grappling with significant input cost inflation, driven by a surge in crude ​oil prices amid geopolitical tensions in the Middle East. ​To counter that, the company raised price by about 12% earlier ⁠in the month to protect its margins.

The company posted a ​consolidated profit of 15.39 billion rupees ($161.00 million) for the quarter ended ​June 30, compared with analysts’ estimate of 12.02 billion rupees, according to LSEG data.

Consolidated revenue from operations rose about 18% to 105.42 billion rupees for ​the June quarter.

The strong results suggest that demand remained resilient despite ​higher prices, with the company benefiting from a low base of comparison from ‌the ⁠previous year and stable demand in urban areas.

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Volume growth in its key domestic decorative business, a metric closely watched by investors amid concerns over price hikes, was 9% higher from last year.

The ​Indian paint industry ​is heavily dependent ⁠on crude-based derivatives, which make up a significant portion of input costs. While analysts noted a ​correction in crude prices toward the end of the ​quarter ⁠in June, the full benefit is expected to be reflected from the second quarter onwards.

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The company’s international business also posted solid growth across ⁠key ​markets and expanded margins, led by strong ​performance in the Middle East despite challenges stemming from the ongoing regional conflict.

($1 = 95.5875 ​Indian rupees)

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