"Demand for Coatings is slowly bouncing back to pre-GST levels. However, high raw material costs continue to impact margins.

The quarter marked the successful launch of ColourFutures™2018 announcing Heart Wood as the Colour of the Year.

As part of our Human Cities initiative, we have been focusing on education of underprivileged children and skill development of youth. Till date, we have trained over 1600 people in the Painter Academy. The Company won the prestigious ICSI (Institute of Company Secretaries of India) CSR Excellence Award 2017 in ‘Emerging Companies' category."

Performance for the quarter ended December 2017

For quarter ended December 2017, net sales rose 6% to Rs 711.99 crore compared to corresponding previous year period. Operating margins of the company fell 100 bps to 13.9% leading a 2% fall in operating profit to Rs 98.96 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 510 bps to 47.4%. Purchase of stock in trade decreased 370 bps to 4.1%. Employee benefit expenses increased 110 bps to 10.2% while other expenses decreased 160 bps to 22.5%.

Other income rose 86% to Rs 18.24 crore. Interest cost decreased by 15% to Rs 0.75 crore. Depreciation rose 13% to Rs 14.25 crore. PBT rose 5% to Rs 102.2 crore. Considering 870 bps fall in effective tax rate to 22.5% net profit rose 19% to Rs 79.69 crore.

Performance for nine months ended December 2017

For nine months ended December 2017, net sales rose 4% to Rs 2018.94 crore compared to corresponding previous year period. However company operating margins fell 170 bps to 11.4% leading a 10% decrease in operating profit to Rs 229.24 crore.

Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 160 bps to 47.7%. Purchase of stock in trade decreased 80 bps to 6.5%. Employee benefit expenses increased 80 bps to 10% while other expenses decreased 10 bps to 24.1%.

Other income fell 12% to Rs 31.02 crore. Interest cost decreased by 3% to Rs 1.85 crore. Depreciation rose 14% to Rs 43.22 crore. PBT before EO as a result fell 14% to Rs 215.19 crore. The company had an EO income of Rs 2 crore compared to nil in the corresponding previous year period. PBT after EO was down 13% to Rs 217.19 crore. Considering 700 bps fall in effective tax rate to 26.5% PAT fell 4% to Rs 159.54 crore.

The scrip is trading at Rs 1800 at BSE