Revenue from Operations for the quarter ended 30th June, 2021 was Rs 1,798.49 crores (corresponding quarter last year: Rs 930.76 crores), representing an increase of 93.2%.
PBDIT (Profit before Depreciation, Interest, Tax and Other Income) for the quarter ended 30th June, 2021 was Rs 238.53 crores against Rs 92.09 crores in the corresponding quarter last year, representing an increase of 159.0%.
Net Profit for the quarter ended 30th June, 2021 was Rs 140.48 crores (corresponding quarter last year: Rs15.09 crores), representing an increase of 830.9%.
Demand trends have remained healthy since Jun-21. Metros/tier 1s led Q1 growth, which along with price hikes, led to value leading volume growth by 4.5%.
Despite a meaningful revenue beat, EBITDA was lower as RM inflation dragged profitability down.
Management remains upbeat on domestic decorative segment and expects growth to remain healthy, courtesy brand launches and increasing traction in construction chemicals.
It expects dealer addition pace to resume to pre-COVID level (12-13%/year).
Management’s commentary indicated a positive demand outlook and it expects outperformance to continue, driven by growth initiatives, including new launches, scale-up of construction chemicals and network expansion of 12-13%, similar to that of FY21
The company will continue to focus on tier 2-3 cities to drive topline growth.
The company has taken price hikes during the month of May-June’21 followed by further hikes in Jul-Aug’21.
However, significant pressure from increase in raw material price (crude and monomer) led to sharp contraction in gross margin albeit lower than competition.