Asian Paints Q3 results: Net profit drops 5.2% to ₹1,045.6 crore

Asian Paints’ third quarter consolidated profit attributable to owners dropped 5.2% to ₹1,045.6 crore as against the third quarter of the previous fiscal, when the company reported a Profit After Tax (PAT) of ₹1,103.5 crore.

The revenue from operation increased 3.85% to ₹8,819.72 crore in the reporting quarter as against ₹8,521.51 crore in the year ago period.

The drop in profit despite an increasing revenue is attributable to exceptional expenses. The implementation of the New Labour Codes has incurred the company a one time expense of ₹74.5 crore on increase in gratuity and compensation on paid leaves. Further the company also incurred an impairment loss of ₹93.87 crore in ‘Intangibles’, on the acquisition of recognised on acquisition of Obgenix Software Private Limited (’White Teak’).

“We had a third consecutive quarter of good volume growth with our India decorative business delivering a robust 7.9% volume growth in the quarter. The overall coatings business registered a 4.4% revenue growth for the quarter with decorative business revenue growth of 2.8%,” said Amit Syngle, managing director & CEO of Asian Paints Limited in a statement.