Asian Paints drops after announcing Q2 results

Asian Paints declined 4.05% to Rs 822.05 at 10:25 IST on BSE after net profit rose 11.92% to Rs 364.48 crore on 2.6% increase in total income to Rs 3122.98 crore in Q2 September 2015 over Q2 September 2014.

The result was announced after trading hours on Friday, 23 October 2015.

Meanwhile, the S&P BSE Sensex was up 29.83 points or 0.11% at 27,500.64.

On BSE, so far 97,621 shares were traded in the counter as against average daily volume of 1.21 lakh shares in the past two weeks.

The stock hit a high of Rs 844.05 and a low of Rs 821.25 so far during the day. The stock had hit a record high of Rs 924.65 on 5 August 2015. The stock had hit a 52-week low of Rs 634.10 crore on 22 October 2014.

The stock had outperformed the market over the past one month till 23 October 2015, rising 7.9% compared with 6.38% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 1.26% as against Sensex's 3.17% decline.

The large-cap company has equity capital of Rs 95.92 crore. Face value per share is Re 1.

On a consolidated basis, net profit rose 14.88% to Rs 399 crore on 4.3% increase in total income to Rs 3836.87 crore in Q2 September 2015 over Q2 September 2014. The consolidated results for Q2 September 2015 include financials of Kadisco Paint and Adhesive Industry Share Company, (Ethiopia) in which the company's wholly owned subsidiary, Berger International Private Limited, Singapore acquired 51% stake on 9 February 2015. In view of this, the results for the quarter ended 30 September 2015 are not comparable with the results for the corresponding previous period, Asian Paints said.

K.B.S. Anand, Managing Director & CEO, Asian Paints said the demand conditions in the Indian economy remained subdued and growth of decorative coatings business segment in India continued at a lower level than it did in the decade prior to 2012. The material prices remained benign in the quarter aiding margins. The Industrial Coatings JV (AP-PPG) registered good growth in the industrial liquid paints and road markings segment. In the automotive coatings business JV (PPG-AP), the Auto OEM and Refinish segment registered reasonable growths. The International business did well aided by contribution from the units in Middle East and in Ethiopia, although Egypt and Nepal were adversely affected in this period, he said.

Asian Paints' board of directors recommended payment of interim dividend of Rs 2.20 per share for the year ending 31 March 2016 (FY 2016).

Asian Paints is a paint producing company.

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