The company’s profits were strongly driven by a strong increase in volume and operating income. This increase in profits was also due to the low base of the fourth quarter of FY 2020.
Paint and home furnishings giant Asian Paints has announced its fourth quarter results. The company has made a bumper profit in this quarter. Compared to the fourth quarter of 2019-20, there has been an increase of more than 81 percent in profits in the fourth quarter of the financial year 2020-21. During this period, the company’s profit on an annual basis increased by 81.1 per cent to Rs 870 crore. The company has also announced a dividend of Rs 17.85 per share.
Strong growth in volume and operating income in the company’s profits
The company’s profits were strongly driven by a strong increase in volume and operating income. This increase in profits was also due to the low base of the fourth quarter of FY 2020. The company’s revenue in the fourth quarter grew by 43.5 per cent year-on-year to Rs 6,651.4 crore. While the company’s volume growth during this period stood at 48 per cent. In fact, the company performed well in the fourth quarter due to strong demand for paints and home furnishings products in both urban and rural areas of the country. Due to this there has been a recovery in the economy in the second and third quarter.
The company’s domestic decorative business performed well in the fourth quarter
The company’s domestic decorative business for the fourth quarter has been performing quite well. The volume of this segment has increased by 48 percent in the fourth quarter. The board of the company has announced a final dividend of Rs 14.50 per equity share. Due to this, the total dividend of the company has increased to Rs 17.85 per share in the financial year. Asian Paints suffered a setback last year due to the lockdown. The company was not able to perform well due to slowness in economic activity.