Asian Paints Ltd., a paints and coatings manufacturer based in India announced its results for the first quarter ended June 30, 2020.
Q1 Results- QoQ
The company’s net profit declined 53% to Rs 218.45 crores ($29.2 million) for the period ended June 30, 2020 as against net profit of Rs 461.89 crores ($61.7 million) for the previous quarter.
Net sales declined 37% to Rs 2969.75 crores ($396.8 million) during the period ended June 30, 2020 as compared to Rs 4691.39 crores ($626.8 million) during the previous quarter.
Q1 Results- YoY
The company’s net profit decreased 67% to Rs 218.45 crores ($29.2 million) for the period ended June 30, 2020 as against net profit of Rs 655.44 crores ($87.6 million) for the prior-year quarter.
Net sales declined 43% to Rs 2969.75 crores ($396.8 million) during the period ended June 30, 2020 as compared to Rs 5178.24 crores ($691.9 million) during the prior-year quarter.
On the impact of the pandemic on its business, Asian Paints Ltd in its stock exchange filing said, “The outbreak of COVID-19 pandemic and consequent lockdown has impacted regular business operations. The Company has taken into account external and internal information for assessing possible impact of COVID-19 on various elements of its financial results, including recoverability of its assets.”
Asian Paints Ltd.’s Managing Director and Chief Executive Officer Amit Syngle said, “While May sales would likely represent pent up demand from the time of the lockdown, June and July sales suggest new demand, such as waterproofing or new projects.”