Asian Paints spurted 6.07% to settle at Rs 516.50 on BSE after consolidated net profit rose 36.66% to Rs 326.84 crore on 19.04% rise in total income to Rs 3160.03 crore in Q2 September 2013 over Q2 September 2012.
The company announced the result during market hours today, 21 October 2013.
Meanwhile, the BSE Sensex was up 11 points, or 0.05%, to 20,893.89.
On BSE, 7.10 lakh shares were traded in the counter compared with average volume of 1.27 lakh shares in the past one quarter.
The stock hit a high of Rs 529.35 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 488.55 so far during the day. The stock hit a 52-week low of Rs 376.35 on 28 August 2013.
The stock had outperformed the market over the past one month till 18 October 2013, rising 9.28% compared with the Sensex's 4.61% rise. The scrip had, however, underperformed the market in past one quarter, falling 6.63% as against Sensex's 3.75% rise.
The large-cap company has an equity capital of Rs 95.92 crore. Face value per share is Re 1.
On a consolidated basis, profit before depreciation interest and tax (PBDIT) for the group increased by 37.9% to Rs 556.20 crore in Q2 September 2013 over Q2 September 2012. Profit Before Tax (PBT) increased by 36.1% to Rs 483.90 crore in Q2 September 2013 over Q2 September 2012.
Asian Paints said that the consolidated results include unaudited consolidated financials of Sleek International in which the company acquired 51% stake on 8 August 2013.
During the quarter, Asian Paints (International) (APIL), wholly-owned subsidiary of the company, acquired an additional stake of 25.72% in its subsidiary, Berger International, Singapore (BIL) through an off market transaction.
Pursuant to this, APIL announced a voluntary unconditional cash offer to acquire the balance 24.18% shares of BIL with an intention to make BIL a wholly-owned subsidiary of APIL and delist from Singapore Exchange Securities Trading (SGX-ST). About 7.88% of shares were acquired through this open offer till 30 September 2013. Thus, as on 30 September 2013, the shareholding of APIL in BIL is 83.7%.
Additionally, 11.2% of shares were acquired through the open offer during 1 October and 18 October 2013. As on 18 October 2013, the shareholding of APIL in BIL is 94.9%.
The accounting of the investments mentioned above in the consolidated financials of the group has resulted in increase in the goodwill on consolidation by Rs 82.35 crore. Hence, the results for the quarter ended 30 September 2013 are not comparable with the corresponding previous period.
"The Decorative Paints business in India fared very well and registered good double digits volume growth. Good growth witnessed across geographies especially in Tier 2 & Tier 3 cities,"said K.B.S. Anand, Managing Director & CEO, Asian Paints.
"Industrial coatings business continues to be affected by the economic slowdown. Automotive coatings growth was subdued due to lower demand in the auto sector. The International business registered good growth with volume sales exceeding 1 lac KL mark in the first six months of FY 2014. Middle East and Asia have done well even though some countries continued to be affected by political events and macro economic uncertainty," he added.
Asian Paints is India's largest paint company. The company along with its subsidiaries has operations in 17 countries across the world with 25 paint manufacturing facilities, servicing consumers in 65 countries through Berger International, SCIB Paints - Egypt, Asian Paints, Apco Coatings and Taubmans.
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