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Asian Paints posted a robust 30 per cent rise in its consolidated net profit at Rs 335 crore in the third quarter ending December 31 as against Rs 256 crore in the year ago period.
The paints major’s consolidated total income rose 18 per cent at Rs 3,052 crore in the October-December period in FY 13, as against Rs 2,566 crore in the same period last fiscal, the company said in a filing on the Bombay Stock Exchange.
Improved distribution
Analysts tracking the sector said that the growth could be attributed to improved distribution, renewed focus in brand building and marketing activities taken by the company. Besides, October-December is a period of festivals and its helps the paint companies boost their volume growth, though the quarter witnessed a softening of raw material prices.
Stronger growth
Asian Paints is expected to post stronger growth in revenues as well as margins in the coming quarters too, which is a good sign of an improving economy, the analysts added.
Investment bank Morgan Stanley, in its report last week, had mentioned that the company could see its gross margins expand by 300 basis points in fiscal years 2012-2015.
According to the Indian Paint Association President Ramakanth Akula, though the paint industry witnessed some slowdown in the last few years due to global economic uncertainties and growing urbanisation, it is expected to grow over the next three years to touch around Rs 49,545 crore by FY16.”
Priyanka.pani@thehindu.co.in
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