The company continues to:

• focus on delivering consistent profit growth through improved product mix and cost control;

• see growth in decorative paints and protective coatings. However, slowdown in automotive industry and other industrial segments has impacted the overall revenue growth; and

• make progress in its CSR/ Sustainability agenda across painter training, education, road safety and healthcare programmes.

Performance for the quarter ended March 2019

For quarter ended March 2019, net sales rose 1% to Rs 719.69 crore compared to corresponding previous year period. Operating margins of the company rose 430 bps to 14.4% leading a 43% rise in operating profit to Rs 103.38 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) fell 190 bps to 51.2%. Purchase of stock in trade decreased 50 bps to 4.7%. Employee benefit expenses decreased 100 bps to 9.3% while other expenses decreased 60 bps to 20.8%.

Other income fell 13% to Rs 7.94 crore. Interest cost was Rs 2.53 crore compared to Rs 0.89 crore. Depreciation rose 36% to Rs 20.2 crore. PBT rose 35% to Rs 88.59 crore. Considering 160 bps rise in effective tax rate to 35.5% net profit rose 31% to Rs 57.14 crore.

Performance for year ended March 2019

For year ended March 2019, net sales rose 7% to Rs 2918.35 crore compared to corresponding previous year period. However company operating margins rose 70 bps to 11.7% leading a 14% increase in operating profit to Rs 342.3 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 210 bps to 51.1%. Purchase of stock in trade increased 30 bps to 7%. Employee benefit expenses decreased 120 bps to 9% while other expenses decreased 180 bps to 21.1%.

Other income fell 4% to Rs 42.22 crore. Interest cost was Rs 4.45 crore compared to Rs 3.5 crore. Depreciation rose 12% to Rs 65.16 crore. PBT before EO as a result rose 12% to Rs 314.91 crore. The company had an EO income of Rs 0.65 crore compared to EO income of Rs 2 crore in the corresponding previous year period both representing divestment provisions no longer required and accordingly written back. PBT after EO was up 11% to Rs 315.56 crore. Considering 580 bps rise in effective tax rate to 33.1% PAT rose 3% to Rs 210.98 crore.

The scrip is trading at Rs 1755 at BSE