Asian Paints FY06 consolidated net rises 27 per cent

Our Corporate Bureau
11 May 2006

Asian Paints has reported results for the March quarter and full year 2005-06 which are in line with expectations. The company managed to increase sales by more than 20 per cent while improving margins during the last quarter.

For the quarter ended 31 March 2006, standalone net profit declined 50.65 per cent to Rs 20.29 crore from Rs 41.10 crore for the previous year quarter. Total revenues increased 28.19 per cent to Rs 578.94 crore from Rs 451.63 crore.

During the quarter, Asian paints provided Rs 33.6 crore towards value erosion of investments in a wholly owned subsidiary. Adjusted for this extraordinary item, stand alone profits for the quarter increased 31.34 per cent to Rs 53.89 crore.

Operating profits for the quarter, excluding other income, increased 33.34 per cent to Rs 81.25 crore from Rs 60.91 crore. Operating margins for the quarter were higher at 14.39 per cent of sales as compared to 13.77 per cent.

For the full year 2005-06, standalone net profit — adjusted for extraordinary items — increased 24 per cent to Rs 220.38 crore from Rs 177.71 crore for 2004-05. Standalone revenues increased 19.35 per cent to Rs 2,355.08 crore from Rs 1,973.21 crore.

Full year operating profits increased 19.79 per cent to Rs 351.92 crore from Rs 293.78 crore. Operating margins improved marginally to 15.18 per cent from 15.13 per cent for the previous year.