(Reuters) - India's top paint maker Asian Paints Ltd reported a lower-than-expected rise in second-quarter profit on Thursday, as price hikes were not enough to offset an extended monsoon and higher input costs.
The company's consolidated net profit rose 31.3% year-over-year to 7.83 billion rupees ($94.38 million) in the quarter, but missed analysts' expectations of 10.82 billion rupees, according to IBES data from Refinitiv.
"We took a series of calibrated price increases to offset the impact of increased inflation on margins," Asian Paints Chief Executive Amit Syngle said.
India's paint makers have been contending with stubborn inflation that has driven input costs significantly higher, prompting them to hike prices.
Asian Paints raised prices by 2.2% in the second quarter, as estimated by Centrum Institutional Research, while the company said it total expenses jumped 16.6% in the period.
Syngle said the company also saw subdued demand due to prolonged monsoon conditions in the country this year.
Asian Paints' revenue from operations rose 19.2% to 84.58 billion rupees in the quarter.
The company's shares fell as much as 2.9% to 3,120.45 rupees after the profit miss.