Asian Paints slips in volatile trade after declaring Q1 result

Asian Paints fell 0.99% to Rs 843.45 at 13:48 IST on BSE after net profit rose 38.52% to Rs 427.81 crore on 7.85% growth in total income to Rs 3014.36 crore in Q1 June 2015 over Q1 June 2014.

The result was announced during market hours today, 21 July 2015.

Meanwhile, the S&P BSE Sensex was off 3.22 points or 0.01% at 28,416.90

On BSE, so far 5.08 lakh shares were traded in the counter as against average daily volume of 1.44 lakh shares in the past two weeks.

The stock was volatile. The stock hit a high of Rs 869 and a low of Rs 835.20 so far during the day. The stock had hit a record high of Rs 922.80 on 29 January 2015. The stock had hit a 52-week low of Rs 578.55 crore on 18 July 2014.

Asian Paints said that results of Q1 June 2015 are not comparable with Q1 June 2014. The results of Q1 June 2015 include results of bath fittings business acquired by the company effective 1 June 2014, Asian Paints said.

Meanwhile, Asian Paints said that as part of the company's plan to consolidate its investments in its overseas subsidiaries, Asian Paints (International), Mauritius, a wholly owned subsidiary of the company has transferred its entire holding of 89.78% held by it in its subsidiary - Asian Paints Bangladesh, Bangladesh to its wholly owned subsidiary, Berger International, Singapore.

K.B.S. Anand, Managing Director & CEO, Asian Paints said that no significant improvement in demand conditions was witnessed in the decorative coatings business in India in Q1 June 2015. Lower raw material prices aided gross margins of the business. The growth in the Industrial coatings JV (AP-PPG) was led by a good demand in Industrial Liquid Paints and Powder coatings segment, K.B.S. Anand said. The Automotive coatings JV (PPG-AP) witnessed subdued demand conditions both in the General Industrial as well as Auto OEM segment. The Auto Refinish segment registered decent growth. The international business reported satisfactory performance aided by contribution from the units in Middle East and in Ethiopia, , he said. In the Home Improvement Business category, the Kitchen (Sleek) and Bath (ESS ESS) businesses has been impacted by subdued demand conditions, he added.

Asian Paints is India's leading paint company and ranked among the top ten decorative coatings companies in the world.

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