Q1FY22 Result Update - Asian Paints - ICICI Direct

Revenue and bottomline growth was ahead of our estimates but EBITDA margins came in lower than expected

- Reported revenue growth of 91% YoY to Rs. 5585 crore (up 91% YoY)

- Gross margins declined 630 bps YoY to ~38% while EBITDA margin was flat at 16.4% due to better operating leverage and savings in other costs

- PAT growth of ~162% YoY to Rs. 574 crore was supported by strong sales growth on a YoY basis

- The company has taken a price hike of 3% in Q1FY22 and has further guided to take price hikes to maintain EBITDA margin in the range of 19-21%, going forward

Key triggers for future price performance

- Repainting represents ~80% of total decorative paint demand. Gradual reduction in re-painting cycle would drive future paint demand

- Increased focus on the 'water proofing & building chemical' category will continue drive revenue growth for Asian Paints. Water proofing & building chemical industry is pegged at Rs. 6000 crore vs. Rs. 1.5 lakh crore in China

- Model revenue, earnings CAGR of 20%, 21%, respectively, in FY21-24E

For details, click on the link below: Link to the report

Shares of ASIAN PAINTS LTD. was last trading in BSE at Rs. 3159.2 as compared to the previous close of Rs. 2979.35. The total number of shares traded during the day was 261867 in over 20361 trades.

The stock hit an intraday high of Rs. 3178 and intraday low of 2981.7. The net turnover during the day was Rs. 806255616.

Source : Equity Bulls

Keywords