Mumbai, July 24: Asian Paints has reported a 18.53 per cent rise in net profit to Rs 18.55 crore during the first quarter ended June 30, 2000, against Rs 15.65 crore in the same period in the previous year.Gross sales in the quarter were up by 11 per cent to Rs 322.46 crore from Rs 290.34 crore during the corresponding quarter last fiscal. Net sales rose by 9 per cent from Rs 228.72 crore to Rs 249.59 crore, while other income rose from Rs 2.92 crore to Rs 3.03 crore. Earnings per share increased from Rs 3.9 to Rs 4.62 during the period. "It has been a good beginning for the company and this should augur well for the remaining financial year. We are encouraged by the growth rate achieved by the company. sales have begun to pick up at all counters across the country," Asian Paints vice-chairman and managing director Ashwin Dani said.Total expenditure during the first quarter stood at Rs 211.86 crore, up from Rs 196.04 crore during the corresponding period last year."Raw material prices have increased marginally in the first quarter. The company expects a marginal increase in the raw material prices during the balance financial year," Asian Paints has said.
Interest charges declined from Rs 5.80 crore to Rs 5.13 crore, while provision for depreciation shot up from Rs 6.80 crore to Rs 7.95 crore. Provision for taxation increased from Rs 7.35 crore to Rs 9.13 crore during the period.
The decorative business unit, the company said, performed well in the current quarter as growth was driven by robust volumes as a result of the new products launched in recent years.During the current year, the company launched three new products in the current year - Asian Woods Opal, Utsan Enamel and Utsav Acrylic distemper. "The new products will be made available throughout the country in the current financial year," the company said. While Utsav Enamel and Utsav Acrylic Distemper are targeted at the rural market, the Asian Woods opal will target the premium wood-finish segment.
The urban retail strategy of placing "colour world", the company's retail outlet, has gained momentum in the first quarter. The company currently has 964 such outlets throughout the country. "The supply chain engine has been implemented and will go live in another 45 days. The implementation of the ERP solution is as per schedule and will be completed by the end of the current financial year," Asian Paints has said.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.