"The quarter's performance has been impacted due to slow sales growth and higher input prices. The process towards the transition to GST also had an adverse impact.

We have transitioned smoothly to the GST environment with zero disruption to business operations. With good monsoons and the markets picking up post introduction of GST, we expect improved sales performance in the coming months.

Pursuing the skill development agenda of the Government of India under our Human Cities initiative, the company has reached a milestone of training 1000 youth in basic painting skills, to open up gainful employment opportunities.

We continue to invest in growth as per our strategy, with an anticipated capital spend of Rs 80-100 crore in the current year. This would include commissioning of Powder Coatings facility and expansion of digital marketing and colour solutions machines in customer facing areas."

Performance for the quarter ended June 2017

For quarter ended June 2017, the overall top-line rose 2% to Rs 714.89 crore compared to corresponding previous year period. Operating margins of the company fell 460 bps to 9.3% leading a 32% fall in operating profit to Rs 66.55 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 170 bps to 45.8%. Purchase of stock in trade increased 30 bps to 13.1%. Employee benefit expenses increased 140 bps to 9.7% while other expenses increased 90 bps to 22.2%.

Other income fell 46% to Rs 6.77 crore. Interest cost decreased by 25% to Rs 0.45 crore. Depreciation rose 13% to Rs 14.66 crore. PBT before EO fell 40% to Rs 58.21 crore. The company had an EO income of Rs 2 crore during the current quarter compared to nil in the corresponding previous year quarter. PBT after EO fell 38% to Rs 60.21 crore. Considering 200 bps fall in effective tax rate to 31.5% net profit fell 36% to Rs 41.27 crore.

Performance for year ended March 2017

For year ended March 2017, the overall top-line rose 7% to Rs 2824.88 crore compared to corresponding previous year period. However company operating margins rose 90 bps to 12.4% % leading a 15% increase in operating profit to Rs 348.88 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) fell 130 bps to 44.7%. Purchase of stock in trade increased 150 bps to 11.6%. Employee benefit expenses increased 20 bps to 9.1% while other expenses decreased 120 bps to 22.3%.

Other income fell 13% to Rs 49.31 crore. Interest cost increased by 44% to Rs 3.19 crore. Depreciation rose 5% to Rs 56.51 crore. PBT before EO as a result rose 11% to Rs 338.49 crore. The company had an EO income of Rs 3.87 crore compared to Rs 9.9 crore in the corresponding previous year period. PBT after EO was up 9% to Rs 342.36 crore. Considering 400 bps fall in effective tax rate to 27.8% PAT rose 15% to Rs 247.02 crore.

The scrip is trading at Rs 1783 at BSE