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Shalimar Paints gallops after good Q2 earnings

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Capital Market
Last Updated : Nov 12 2013 | 11:55 PM IST

Shalimar Paints jumped 6.90% to Rs 74.40 at 10:35 IST on BSE after net profit rose 48% to Rs 4.1 crore on 6% increase in revenue to Rs 122.20 crore in Q2 September 2013 over Q2 September 2012.

The company announced the result after market hours on Monday, 11 November 2013.

Meanwhile, the BSE Sensex was up 14.56 points, or 0.07%, to 20,505.52.

On BSE, 43,000 shares were traded in the counter compared with average volume of 33,629 shares in the past one quarter.

The stock hit a high of Rs 76 and a low of Rs 72.20 so far during the day. The stock hit a 52-week high of Rs 153.70 on 22 November 2012. The stock hit a 52-week low of Rs 48.95 on 4 September 2013.

The stock had outperformed the market over the past one month till 11 November 2013, rising 22.11% compared with the Sensex's 0.18% fall. The scrip had also outperformed the market in past one quarter, rising 25.29% as against Sensex's 9.06% rise.

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The small-cap company has an equity capital of Rs 3.79 crore. Face value per share is Rs 2 .

Shalimar Paints said that the improvement in profit after tax (PAT) margins was driven by lower material costs as a percentage of sales and lower trade discounts, partially offset by higher employee costs and other operating expenses.

Mr Sameer Nagpal, MD & CEO, commented, "Our growth this quarter has been in line with expectations and reverses the de-growth trend of the last quarter. Our efforts to improve product mix are paying off and helping us build a platform for profitable scaling up of the business."

Mr Girish Jhunjhnuwala, Chairman, commented, "We are focussing on building a strong foundation for the company to ensure sustainable growth in future. We expect to see continuous improvement in sales growth and margin profile from here on."

Shalimar Paints is a pioneer in the field of paints and coating in India. It has three manufacturing units and strong footprint across the nation with more than 54 branches and depots.

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First Published: Nov 12 2013 | 10:58 AM IST

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