The company said the VAE manufactured at the facility is intended to be primarily used for captive consumption at its paint manufacturing facilities. The commencement of commercial production is part of the company’s ongoing backward integration initiatives, Asian Paints said.
The company had earlier disclosed plans to establish manufacturing facilities for VAE and Vinyl Acetate Monomer (VAM), along with an ethylene storage and handling facility, at Dahej.
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Construction of the VAM manufacturing and ethylene storage and handling facilities is currently in progress. Asian Paints said it will make further disclosures on material developments in this regard from time to time.
First Quarter Results
Asian Paints reported decorative business volume growth of 9% during the quarter, which was the mid-point of the CNBC-TV18 poll projection of 8% to 10%.
Revenue for the quarter stood at ₹10,542 crore, which is a growth of 18%, when compared to last year’s figure of ₹8,938.6 crore. A CNBC-TV18 poll had pegged the figure at ₹10,200 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹2,169 crore, a 33.5% growth compared to last year’s figure of ₹1,625 crore. The figure was also higher than the CNBC-TV18 poll expectation of ₹1,870 crore.
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EBITDA margin for the quarter stood at 20.6%, a 240 basis points expansion compared to last year’s 18.2% figure. A CNBC-TV18 poll had pegged the figure at 18.3%. For the decorative business, value growth during the June quarter stood at 16.6% year-on-year.
The Industrial Coatings business sustained its mid-teen growth momentum, complementing the performance of the decorative segment and driving broad-based growth across its coatings portfolio.
Shares of Asian Paints Ltd ended at ₹2,454.00, up by ₹35.00, or 1.45%, on the BSE.
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