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Asian Paints Q1 net rises 14 pc

Our Bureau

MUMBAI, July 23

BETTER realisations from phthalic anhydride and pentaerythritol helped Asian Paints India Ltd to increase its net profit by 14 per cent to Rs 21.22 crore in the first quarter ended June 30, 2001 as against Rs 18.55 crore in the corresponding period last year.

Raw material prices have increased marginally in the first quarter which has affected the company's performance. ``Titanium dioxide, one of the important raw materials for paints increased in the quarter. The company expects a marginal increase in raw ma terial prices for the balance financial year'', said a company release.

Mr Ashwin Dani, Vice-Chairman and Managing Director, Asian Paints, said: ``The industrial business of the company was better by 13 per cent with reference to the corresponding period last year. Sale of conventional products recorded a good growth.''

Net sales moved up to Rs 273.81 crore (Rs 249.59 crore). Net sales also include the processing charges received/receivable from the joint venture unit, Asian PPG Industries Ltd. Other income has increased to Rs 5.30 crore (Rs 3.03 crore). Total expenditu re has increased to Rs 233.85 crore (Rs 211.86 crore). Net sales and total expenditure include inter-division transfers of finished goods as per the company's accounting policy.

Interest has dropped to Rs 4.70 crore (Rs 5.13 crore) and depreciation has increased to Rs 9.34 crore (Rs 7.95 crore). Provision for tax was at Rs 10 crore (Rs 9.13 crore). The company has changed the method of valuation of inventories of raw materials, packing materials, stores, spares and consumables from FIFO to Weighted Average Cost basis. Consequently, the value of inventory as on June 30, 2001 is higher by Rs 49.02 lakh with corresponding increase in profits for the quarter.

Earnings per share was at Rs 3.31 (Rs 4.62) on the increase capital after the issue of 3:5 bonus shares in September, last year.