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Shares of Asian Paints have dipped 2.5% at Rs 771, falling nearly 6% from their intra-day highs on the NSE, after the company reported a lower-than-expected 18.8% year-on-year growth in consolidated net profit at Rs 341 crore for the quarter ended March 2015 (Q4). The company had posted a profit of Rs 287 crore in the year-ago quarter.
Total operational income during the quarter grew single digit by 6.9% to Rs 3,535 crore as against Rs 3,307 crore in the corresponding quarter of the previous fiscal.
Analysts on an average had expected net profit of Rs 367 crore on revenues of Rs 3,602 crore.
“In the decorative business segment in India, we registered single digit volume growth in the fourth quarter due to poor demand conditions. Profitability improved due to falling raw material prices,” said K.B.S. Anand, Managing Director & CEO, Asian Paints.
“Weak consumer sentiments and slower ramp-up than our expectations, impacted demand for our kitchen (sleek) and bath fittings (ESS ESS) business in the home improvement business category,” he added.
The stock opened at Rs 797 and touched a high of Rs 818 on the NSE before announcement of results. A combined 5.92 million shares changed hands on the counter on the NSE and BSE till 1503 hours.
Total operational income during the quarter grew single digit by 6.9% to Rs 3,535 crore as against Rs 3,307 crore in the corresponding quarter of the previous fiscal.
Analysts on an average had expected net profit of Rs 367 crore on revenues of Rs 3,602 crore.
“In the decorative business segment in India, we registered single digit volume growth in the fourth quarter due to poor demand conditions. Profitability improved due to falling raw material prices,” said K.B.S. Anand, Managing Director & CEO, Asian Paints.
“Weak consumer sentiments and slower ramp-up than our expectations, impacted demand for our kitchen (sleek) and bath fittings (ESS ESS) business in the home improvement business category,” he added.
The stock opened at Rs 797 and touched a high of Rs 818 on the NSE before announcement of results. A combined 5.92 million shares changed hands on the counter on the NSE and BSE till 1503 hours.
