Good growth in the decorative paints segment from the non-metros and small towns has helped Asian Paints record a 37 per cent jump in its consolidated net profit which stood at Rs 327 crore in the second quarter ended September 30. The company’s profit in the year-ago period was Rs 239.16 crore.

The consolidated net sales during the quarter stood at Rs 3,084 crore compared with Rs 2,612 crore in the same period last fiscal (FY-13). While the decorative paints business in India fared very well and registered double-digit volume growth, the industrial paints segment continued to be affected by the economic slowdown. The automotive coating segment also remained subdued due to lower demand in the auto sector.

“The international business registered good growth with the volumes sales exceeding the one-lakh-kilo-litre mark in the first six months of FY 2014. West Asia and Asia have done well though some countries continued to be affected by political events and macro economic uncertainty,” said its Chairman K.B.S. Anand.

Asian Paints, with a consolidated turnover of Rs 10,970 crore, has operations in 17 countries with 25 paint manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints, Asian Paints, Apco Coatings and Taubmans.

Meanwhile, the board of directors has recommended payment of interim dividend of Rs 1.10 per equity share of the face value of Rs 1 each for the financial year ending March 31, 2014. The company’s scrip closed at Rs 516.50, up 6.07 per cent from its previous close, on the BSE.

Related Topics