Asian Paints net sales up 9.9%

Our Corporate Bureau
23 July 2003

Mumbai: Asian Paints (India) Ltd today announced their results for the first quarter ended 30 June 2003.

The company's net sales and operating income increased by 9.9 per cent from Rs 3,448.18 million to Rs 3,788.56 million. Other income for the quarter grew by 54.6 per cent from Rs 28.44 million to Rs 43.96 million.

Profit before depreciation, interest and tax (PBDIT) declined by 4.4 per cent from Rs 603.84 million to Rs 577.04 million. The net profit of the company has remained nearly flat from Rs 288.30 million to Rs 287.91 million for the quarter ended 30 June 2003.

"Despite the sluggish demand environment, Asian Paints registered a good volume growth as all product categories posted growth," says Asian Paints' vice-chairman and managing director Ashwin Dani. "The company posted lower profits during the quarter primarily due to a lower contribution from the chemical business. Looking ahead, the company is optimistic about its performance in the remaining financial year, as the economy is showing signs of improvement and a good monsoon is expected."

Asian Paints' net sales increased by 9.9 per cent primarily due to the good growth achieved by the company in most product categories. The exterior segment continues to perform well and new products for the company have registered impressive growth rates. Profitability for the quarter was affected due to the high base of the corresponding quarter of the previous financial year, lower contributions from the chemicals business and increased material costs in the paints business.