Shares of paint companies are on the rise on the bourses after reporting a healthy over 25% year-on-year (yoy) growth in net profit and net sales for the quarter ended March 2012.
Asian Paints, Shalimar Paints, Kansai Nerolac Paints, Berger Paints and Akzo Nobel India are trading higher by 2-10%, compared to a marginal fall in the benchmark index in noon trades.
Shalimar Paints has rallied 29% in past two trading days, on reporting a healthy 69% y-o-y growth in net profit at Rs 6 crore in March quarter. The operating profit margins of the paints maker has improved by 400 bps at 9.72%, while the net profit margin moved up by 133 bps at 4.07% during the recently concluded quarter
Asian Paints hits a lifetime high of Rs 3,732 on the Bombay Stock Exchange, The country’s largest paint company had posted 40% y-o-y growth in a consolidated net profit at Rs 260 crore for Q4FY12, on back of good demand for decorative products across country.
However, the deprecation of rupee and continued upward trend in raw material prices remain a concern area, said KBS Anand, managing director, Asian Paints, in press release.
