Asian Paints Q3 net up 31%
Demand for painting went up during Dussehra, Diwali and Christmas Viveat Susan Pinto
Mumbai-headquartered Asian Paints Ltd reported a 30.51% hike in consolidated net profit for the quarter ended December 31, 2012 as consumer demand for painting and repainting jobs remained high during the three-month-period thanks to multiple festivals such as Dussehra, Diwali and Christmas.
Net profit stood at Rs 335.23 crore in the quarter under review versus Rs 256.86 crore in the corresponding period last year. Net sales was up nearly 19% for the quarter to Rs 3,037.14 crore as against Rs 2,558.86 crore reported a year ago.
Input cost pressures during the quarter were visible with the cost of materials consumed moving up 8.1%. Asian Paints' other expenditure, which includes those on advertising and sales promotion was up 20.32% during the quarter pointing to the higher spends on the latter.
Typically, painting in India is undertaken post the monsoons especially during the festive period of October, November, December. Ad spends are typically high during this period to draw attention of consumers to brands.
In the last few years, the top three players including Asian Paints, Berger and Kansai Nerolac have been spending heavily on brand-building in the hope of improving sales. The increase in spends is also partly linked to industry estimates that growth will continue to come from the decorative segment rather than the industrial segment.