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Asian Paints, India's largest paints company reported September quarter results that were below street expectations.

The company's revenue increased 19.8 percent from last year to Rs 8,458 crore. A CNBC-TV18 poll had pegged the figure at Rs 8,900 crore.

Despite the rise in the company's operating profit and margin, both figures turned out to be below what the street anticipated. EBITDA increased 33 percent year-on-year to Rs 1,219.3 crore. However, the figure turned out to be lower than the CNBC-TV18 poll of Rs 1,583 crore.

EBITDA margin expanded 170 basis points to 14.4 percent, a big miss compared to the 17.8 percent estimates.

Net profit also increased 33 percent from last year to Rs 803.8 crore. That figure was also below the estimate of Rs 1,075 crore.

The company reported a 200 basis points decline in gross margin compared to the June quarter. When compared to the same period last year, gross margin is up 100 basis points.

The company has previously reiterated that it wants to maintain its margin around the 18-21 percent mark over the medium-term.

Asian Paints has undertaken four price hikes over the last 12 months.

Volume growth during the quarter is likely to be between 10-11 percent, lower than the CNBC-TV18 poll of 14-15 percent.

Other Key Highlights:

Domestic decorative business saw double-digit volume growth despite subdued demand conditions, impacted by the extended monsoons.

Home decor business continued to gain traction with focus on lighting, kitchen, and bath.

Robust growth in the Auto OE business

Industrial coatings business continues with high growth trajectory led by protective and powder coatings

Double-digit growth in the international business despite multiple headwinds across key markets

Among the company's other segments, the international, bath fittings, and the kiitchen business grew between 10-15 percent, while the industrial business saw growth in excess of 20 percent.

Shares of Asian Paints slipped from the day's high and are currently trading 2.4 percent lower at Rs 3,136.65 as of 1:50 PM.

First Published:Oct 20, 2022 1:56 PM IST