Nifty heavyweight Asian Paints’ topline rises, while the bottom line along with margins declined on a consolidated basis in the second quarter of the financial year 2021-22 (Q2FY22), amid steep inflation in raw material prices, the company said in results filing to exchanges.

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The paint company reported a 29 per cent fall in the net profit to Rs 605.2 crore in Q2FY22 as against Rs 852 crore in the same quarter a year ago, while its revenue jumped by 32.6 per cent to Rs 7096 crore in the July-September quarter of FY22 versus Rs 5350 crore during the same quarter in FY21.

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EBITDA (earnings before interest, tax, depreciation, and amortisation) of Asian Paints slipped by 28.5 per cent to 904.4 crores in Q2FY22 versus 1265 crores in Q2FY21. Similarly, its margins dipped by 1080 basis points (bps) to 12.8 per cent from a 23.6 per cent year-on-year basis.

The management in a commentary said, “The domestic Decorative business continued to move ahead on its high growth trajectory with an unprecedented 34 per cent volume growth in the quarter and a strong compounded growth rates over the last 2 years.”

“Steep inflation seen in raw material prices, since the beginning of this calendar year, has been phenomenal and has impacted gross margins across all businesses in the quarter, Asian Paints said in the earnings press release.  

It further said, “We have taken a series of price increases and would look at a further price increase to mitigate the impact of this persistently high inflation and are confident that we should be able to turn this around strongly in the coming quarter.”