Asian Paints is trading higher by almost 4% to Rs 4,439 after reporting 30.5% year-on-year (yoy) growth in consolidated net profit at Rs 335 crore for the quarter ended December 31, due to improved demand conditions during Diwali season. The company had profit of Rs 257 crore in a year ago quarter.
The occurrence of festivals such as Dussehra, Diwali and Christmas during the quarter helped in boosting the volumes of decorative business. However, demand for industrial business remained subdued due to slowdown in project execution.
“The company’s net sales grew 19% for the quarter to Rs 3,037 crore against Rs 2,559 crore reported a year ago, while operating profit increased by 26% to Rs 510 crore from Rs 405 crore,” Asian Paints said in a statement.
Operating profit margin (OPM) rose by 117 bps yoy to 16.3% due to higher realization and decline in raw material costs.
The stock opened at Rs 4,330 and hit a high of Rs 4,444 on NSE. A combined 58,710 shares have changed hands on the counter so far on NSE and BSE.
