Sales volume slows after Asian paints stop production

Asia Paints Limited announced financial results for the quarter and 12 months ended March 31, 2020.

From January 1 to March 31, 2020, the operating income of Asian Paints fell 7.1% from the previous quarter to Rs 46.4 billion (US$ 613 million/4.3 billion), profit before interest and tax (PBDIT) It fell by 3% to 8.6 billion rupees (114 million US dollars/800 million yuan).

From March 2019 to March 2020, Asian Coatings achieved a total operating income of Rs 202.1 billion (US$2.673 billion/189 billion) in the fiscal year 2019-2020, a year-on-year increase of 5%, and profit before depreciation of interest and tax of Rs 37.7 billion (4.99 billion) USD/3.5 billion), a year-on-year increase of 10.5%.

It is reported that due to the impact of the new crown pneumonia epidemic in India and Southeast Asia, the production of Asian coatings was suspended in March, which led to a major impact on the sales business of the decorative business segment. In January and February 2020, the sales of the Asian coatings and decoration business maintained With double-digit growth, the CEO of Asian Coatings believes that based on this data, the decorative coatings segment has great potential for development. In addition, the Indian real estate and construction market has slowed down, and the closure of the business at the end of March has caused the coatings business of Asian coating kitchens and bathrooms to be under growth pressure. In the industrial coatings segment, affected by the downturn in the Indian automotive industry and the overall slowdown in the Indian economy, the automotive coatings and industrial coatings businesses of Asian Coatings and PPG were significantly affected.

But in terms of international business, Asian Coatings performed better. Although the outbreak spread to Sri Lanka and Bangladesh, the market growth in Ethiopia, Egypt, the UAE and Nepal, as well as the benign raw material prices and cost optimization work, well supported the profitability of the entire enterprise.