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Asian Paints reports 49% net profit growth for Q3 QoQ FY20-21

January 25/2021

MOSCOW (MRC) -- Asian Paints Limited., an Indian paints and coatings manufacturer, announced its results for the third quarter ended December 31, 2020, according to Kemicalinfo.

The companys net profit increased 49.1% to Rs 1238.34 crores for the period ended December 31, 2020 as against net profit of Rs 830.37 crores for the previous quarter.

Net sales grew 27% to Rs 6886.39 crores during the period ended December 31, 2020 as compared to Rs 5432.86 crores during the previous quarter.

The companys net profit grew 62% to Rs 1238.34 crores for the period ended December 31, 2020 as against net profit of Rs 764.43 crores for the prior-year quarter.

Net sales increased 25.4% to Rs 6886.39 crores during the period ended December 30, 2020 as compared to Rs 5490.11 crores during the prior-year quarter.
 
Demand conditions continued to exhibit a strong recovery across business segments, spread over most regions in the third quarter of this financial year, said Amit Syngle, Managing Director & CEO, Asian Paints Limited.

Mr Syngle said that the domestic Decorative business delivered a powerful performance with more than 30% volume growth led by a strong performance in premium and luxury portfolios. The Home Decor foray of Asian Paints got a big fillip from a strong performance of the Home Improvement business.

The Industrial coatings business delivered a robust performance, particularly in Protective coatings and Auto OE businesses which rebounded in a big way, benefited by resurgence in the industrial activity, Syngle said.
 
The International business recorded a double-digit volume growth, strongly led by good growth in Asia and Middle East. Profitability across businesses has been well supported by a good Sales mix and some excellent work in cost optimization & sourcing measures pursued strongly through innovation programs, he added.

As MRC reported previously, in early May, 2020, Reliance Industries Ltd. (RIL) announced that it was considering selling its stake in Indias largest paint maker valued at about USD989 million as the conglomerate steps up efforts to trim its debt. RIL was in discussions with banks for a potential sale of its 4.9% stake in Asian Paints Ltd. through a series of block trades. Reliance holds the stake through Teesta Retail. The size and timing of any potential sale havent been finalized, and Reliance could decide not to pro-ceed with a deal, the people said then. The sale of stake in Asian Paints is part of RILs string of fundraising plans unveiled in order to bolster investor confidence, even as the crash in oil prices pulled down profit at the companys oil-to-chemicals business.

We remind that in November 2019, Reliance Industries confirmed plans to invest 700 billion Indian rupees (USD9.75 billion) to establish a crude-oil-to-chemicals (COTC) complex at the company's Jamnagar, India.

The MCC/HSFCC complex will have combined capacity for 8.5 million metric tons/year (MMt/y) of ethylene and propylene, and total extraction capacity for 3.5 MMt/y of benzene, toluene, and xylenes. It will also have combined capacity for 4.0 MMt/y of paraxylene and orthoxylene. The steam cracker will have combined capacity for 4.1 MMt/y of ethylene and propylene, and feed crude C4s to a 700,000-metric tons/year butadiene extraction plant. Reliance will also add 1.3 MMt/y of p-xylene capacity at existing plants at Jamnagar.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's DataScope report, PE imports to Russia decreased in January-November 2020 by 17% year on year and reached 569,900 tonnes. High density polyethylene (HDPE) accounted for the greatest reduction in imports. At the same time, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, paraxylene (PX), homopolymer PP, propylene, HDPE, ethylene, coatings, car components, petrochemistry, paints and coatings, Reliance Industries, Russia.
Category:General News
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