Asian Paints has reported a flat growth in net profit at Rs 32.32 crore for the first half of 1998-99 against Rs 32.06 crore in the corresponding period last year. Sales rose 14.9 per cent to Rs 597.32 crore. The company has announced an interim dividend of 35 per cent.
Depreciation rose 65 per cent to Rs 12 crore, while interest costs rose 14 per cent to Rs 11.68 crore.
At the company's extraordinary general meeting yesterday in Mumbai, shareholders passed resolutions to buy back shares and to appoint an executive chairman. Ashwin Choksi is presently the chairman and Ashwin Dani is the vice-chairman.
Ashwin Choksi did not specify who the executive chairman will be. Choksi said the buyback would take place at a price which will be mutually agreed upon by the board and shareholders.
Asian Paints, the Rs 949-crore paints major, is expected to buy back around five per cent of its equity capital. With this the promoters stake in the company is expected to rise to around 42%.
