Asian Paints slips after disappointing Q4 outcome

The result was announced during trading hours today, 9 May 2013.

Meanwhile, the BSE Sensex was down 47.72 points, or 0.24%, to 19,942.46.

On BSE, 50,000 shares were traded in the counter as against an average daily volume of 13,044 shares in the past one quarter.

The stock hit a high of Rs 4,924.75 and a low of Rs 4,590.50 so far during the day. The stock had hit a record high of Rs 5,047 on 21 March 2013. The stock had hit a 52-week low of Rs 3,447.90 on 26 July 2012.

The stock had underperformed the market over the past one month till 8 May 2013, rising 4.80% compared with the Sensex's 8.42% rise. The scrip had also outperformed the market in past one quarter, rising 7.23% as against Sensex's 2.59% rise.

The large-cap company has an equity capital of Rs 95.92 crore. Face value per share is Rs 10.

On a consolidated basis, Asian Paints' net profit fell 3.23% to Rs 251.11 crore on 7.48% increase in total income from operations (net) to Rs 2733.14 crore in Q4 March 2013 over Q4 March 2012. Profit before depreciation, interest, and taxes (PBDIT) rose 4% to Rs 393 crore in Q4 March 2013 over Q4 March 2012.

Consolidated net profit rose 12.7% to Rs 1113.90 crore on 13.9% increase in total income from operations (net) to Rs 10970.74 crore in the year ended March 2013 over the year ended March 2012. PBDIT rose 14.8% to Rs 1731.90 crore in the year ended March 2013 over the year ended March 2012.

The company said that the results for the quarter and year ended March 2013 are not comparable with the corresponding periods of the previous year as AP Coatings, a wholly-owned subsidiary of the company, ceased to exist as on 31 March 2012, due to a composite scheme of restructuring.

As at 31 March 2013, reserves and surplus in the statement of assets and liabilities includes Rs 35.91 crore of capital reserve on consolidation, being the additional net assets received pursuant to the scheme, Asian Paints said in a statement.

"The company registered satisfactory growth inspite of the challenging environment. We witnessed slowdown in demand conditions in the quarter," said K.B.S Anand, managing director and CEO, Asian Paints.

"Industrial pains segment continues to be impacted due to economic slowdown. Automotive coatings growth was affected due to subdued demand in the auto sector. International business has recorded a good performance. Middle East has done well even though political events and macro economic uncertainity in some countries continue," he added.

The board of Asian Paints recommended a final dividend of Rs 36.50 per share for the financial year ended 31 March 2013.

Meanwhile, the company's board approved splitting each equity share of face value Rs 10 each into ten shares of the face value of Re 1 each (10-for-1).

Asian Paints is India's largest paint company and Asia's third largest paint company. It operates in 17 countries and has 24 paint manufacturing facilities in the world servicing consumers in over 65 countries. Besides Asian Paints, the group operates around the world through its subsidiaries Berger International, Apco Coatings, SCIB Paints and Taubmans.

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