Asian Paints fell 0.61% to Rs 1769 after consolidated net profit rose 67.5% to Rs 823.41 crore on 9.43% rise in net sales to Rs 5,050.66 crore in Q2 September 2019 over Q2 September 2018.The result was announced after market hours yesterday, 22 October 2019. Meanwhile, the S&P BSE Sensex was down 26 points or 0.07% to 38938.14.
The decorative business segment in India registered a high double digit volume growth, though lower than that witnessed in the first quarter. Automotive coatings JV (PPG-AP) business continued to be impacted by the slowdown in the automobile industry and even the industrial coatings JV (AP-PPG) business was impacted by demand slowdown. The entire coatings business, however, benefited from the benign raw material price environment. International operations performed better than the previous quarter with improvement in the key units of Nepal and Egypt. Both the segments in the Home Improvement category viz. the kitchen (Sleek) and bath (Ess Ess) business, were impacted by the slowdown in the real estate construction space.said K.B.S. Anand, Managing Director & CEO, Asian Paints.
The group has implemented new Indian Accounting Standard 116 ('Ind AS 116'), Leases, with effect from 1 April 2019. The group has implemented the standard by adopting the full retrospective approach. Accordingly, the consolidated financial results for the quarter ended 30 September 2019 and all the presented comparative periods are in compliance with Ind AS 116. Consequently, lease rental paid are no longer recognized as other expenses / employee cost. Instead, depreciation on the right of use assets and finance costs on lease liability are recognized in the financial statements. This has no impact on the gross margins earned by the group.
The board of directors approved the payment of an interim dividend of Rs 3.35 per share.
The company announced that K B S Anand, managing director & CEO will be retiring from the company on 31 March 2020. Amit Syngle (age, 53 years), chief operating officer, will succeed K B S Anand as the managing director & CEO with effect from 1st April 2020.
On the BSE, 22,222 shares were traded in the counter so far compared with average daily volumes of 39,703 shares in the past two weeks. The stock hit a high of Rs 1800.9 and a low of Rs 1764.9 so far during the day.
The stock hit a 52-week high of Rs 1824.15 on 15 Oct 2019. The stock hit a 52-week low of Rs 1119.6 on 23 Oct 2018.
Asian Paints is India's leading paint company and ranked among the top ten decorative coatings companies in the world. Asian Paints along with its subsidiaries have operations in 15 countries across the world with 26 paint manufacturing facilities, servicing consumers in over 60 countries. Asian Paints is also present in the home improvement and dor space in India through Sleek (kitchens) and Ess Ess (bath fittings).
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)