What is your take on Asian Paints results in these tough market conditions?

India’s largest paint company, Asian Paints, reported 5.93% higher sales revenues for the Sep-20 quarter at Rs.5350 crore. Operating profits were up 41% at Rs.1,072 crore while net profits were flat at Rs.852 crore.

In terms of margins, OPM expanded was 5% higher at 20.03% while NPM was 75 bps lower at 15.92%. However, it can celebrate the fact that the sharp fall in Jun-20 quarter in top line and profits have been largely reversed and business is gradually inching back to pre-COVID levels.

Asian Paints, saw sharp demand recovery in the lucrative decorative paints segment as well as the industrial paints segment as output started back to normal. This led to positive working capital impact resulting in sharply higher net cash generated by operations.