The kitchen business of Asian Paints clocked revenues in excess of Rs 100 crore for the first time, and achieved operational breakeven despite the inflation headwinds
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
The Q2 FY22 earnings of Asian Paints has turned out to be a mixed bag. Though the company delivered a stellar volume growth in the domestic decorative business, margins hit a multi-quarter low as steep cost inflation led to a sharp contraction in operating margins. Key result highlights Quarterly revenues jumped 33 percent year on year (YoY) to Rs 7,096 crore, led by a 34 percent volume growth in the domestic decorative business. However, the EBITDA (earnings before interest,…
