Asian Paints profit rises 15.5 per cent

Asian Paints reported a net profit of Rs 131.5 crore for the second quarter ended September 30, 2008, a growth of 15.5 per cent from Rs. 113.9 crore over the previous corresponding quarter. Revenue for the quarter rose 30.2 per cent to touch Rs 1,475.3 crore from Rs 1,133.2 crore.

“In general, demand conditions have been good and our domestic business registered an impressive revenue growth of over 30 per cent for the quarter. Our international operations also performed extremely well, in particular the Middle-East and South Asia regions,” said Ashwin Dani, vice-chairman & managing director, Asian Paints.

“Volatile material prices, inflationary pressures, and slowdown in the economy are causes of concern,” he added.

The board of directors recommended the payment of an interim dividend of Rs 6.50 per share (65 per cent). The company distributed an interim dividend of 65 per cent for the first-half of the financial year 2008. Total dividend of 170 per cent was distributed in FY 2008. The dividend payout ratio was 50.85 per cent in FY2008.

For the quarter ended September 30, 2008, net profit on a standalone basis increased by 12.2 per cent to Rs 122 crore from Rs 108 crore. Net sales increased by 31.1 per cent to Rs 1,168 crore from Rs 891 crore.