Asian Paints is trading higher by 2% at Rs 527, extending its previous day’s 6% rally on the BSE, after reporting a strong 37% year on year (yoy) growth jump in consolidated net profit after minority interest at Rs 327 crore for the second quarter ended September 2013 (Q2FY14) on back of strong volume growth. The company had profit of Rs 239 crore in a year ago quarter.
The company’s income from operations grew 18% yoy at Rs 3,115 crore on back of healthy sales in the decorative paints segment and in markets such as Asia and the Middle East. Operating profit increased by 34% yoy at Rs 511 crore during the recently concluded quarter, Asian Paints said in a statement.
Analyst on an average had expected net profit of Rs 262 crore and net sales of Rs 2,960 crore for the quarter.
The company’s consolidated EBITDA margins increased by 174bps at 15.6% due to a 288bps drop in raw material cost to 57.3% of net sales, says analyst on Antique Stock Broking in a note.
Analyst believes Asian Paints would continue to post better gross margins during Q3FY14 on a low base of the previous corresponding period.
The stock opened at Rs 529 and hit a new high of Rs 532 on BSE. A combined around 390,000 shares change hands on the counter in early morning deals on BSE and NSE.
The company’s income from operations grew 18% yoy at Rs 3,115 crore on back of healthy sales in the decorative paints segment and in markets such as Asia and the Middle East. Operating profit increased by 34% yoy at Rs 511 crore during the recently concluded quarter, Asian Paints said in a statement.
Analyst on an average had expected net profit of Rs 262 crore and net sales of Rs 2,960 crore for the quarter.
The company’s consolidated EBITDA margins increased by 174bps at 15.6% due to a 288bps drop in raw material cost to 57.3% of net sales, says analyst on Antique Stock Broking in a note.
Analyst believes Asian Paints would continue to post better gross margins during Q3FY14 on a low base of the previous corresponding period.
The stock opened at Rs 529 and hit a new high of Rs 532 on BSE. A combined around 390,000 shares change hands on the counter in early morning deals on BSE and NSE.
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