For the full year, Asian Paints reported higher net profit at Rs1,169 crore due to robust sales growth. Its shares hits a new 52-week high on Thursday only to fall 5% later
Asian Paints Ltd, India's largest paint manufacturer, posted a higher full year net profit mainly on robust sales. Asian Paints hit a new 52-week high at Rs565 on the BSE today.
For the 12 month to end-March, Asian Paints said its stand alone net profit increased 11.3% to Rs1,169.1 crore from Rs1,050 crore while its total revenues, including sales, grew 16.3% to Rs10,418.8 crore from Rs8,960.1 crore a year ago period.
“Decorative paint demand in India remained resilient in spite of the overall sluggish environment. We registered double digit volume growth with good growth from Tier 2 & Tier 3 cities,” said KBS Anand, managing director and chief executive officer, Asian Paints in a release.
For the quarter to end-March, Asian Paints said its stand alone net profit increased 11.5% to Rs267.1 crore from Rs239.6 crore while its total revenues, including sales, rose 22.2% to Rs2,724 crore from Rs2,229.6 crore, same period last year.
“Industrial coatings business continues to be affected by the economic slowdown. Automotive coatings growth was subdued due to poor demand in the automotive sector. International business performed well led by good growth in some key markets like Bangladesh, Nepal and Emirates. However, performance in some markets was impacted by continued political unrest and weak economic activity. In order to expand its international presence, Asian Paints had entered into an agreement with Kadisco Chemical Industry Plc, Ethiopia to acquire 51% of its share capital,” Anand added.
As on 31 March 2014, FII shareholding in Asian Paints fell to 17.97% from 19.44%, public shareholding fell to 19.88% from 19.90%, while DII shareholding increased to 9.36% from 7.87%. The promoter's shareholding stood at 52.19%.
Asian Paints declared a final dividend of Rs4.20 per share. During the year Asian Paints split its shares from face value of Rs10 to Rs1 each.
Asian Paints closed Thursday 4.9% down at Rs529 after hitting its 52-week high at Rs565 during early trade on the BSE. The S&P BSE Sensex ended the day flat at 23,836.
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ONGC has alleged that at least three wells drilled by RIL on the boundary of KG-D6 block in Bay of Bengal are within few hundred metres of its gas fields
The Delhi High Court on Thursday issued notices to the union government, Directorate General of Hydrocarbon (DGH) and Reliance Industries Ltd on a plea filed by state-run Oil and Natural Gas Corp (ONGC). The two companies have been involved in a face-off for the past several months over whether RIL took out gas from ONGC's gas blocks in the Krishna Godavari (KG) basin.
ONGC moved the High Court accusing RIL of exploiting substantial gas from its natural gas block. It also accused the DGH for failing to take appropriate action and precautionary measures in the matter that is going on since past few months. According to reports, ONGC has sought a compensation of Rs8,000 crore from the Mukesh Ambani-led company.
Last month, both ONGC and RIL had decided to appoint a reputed global consultant to study data on both sides, says a report from Economic Times.
According to the report, ONGC had said at least three wells drilled by RIL on the boundary of KG-D6 block in Bay of Bengal are within "few hundred meters" of its gas fields. It fears the fields are connected and RIL may be drawing out its gas. RIL disputes the ONGC theory and the two firms have shared data to collaborate on their claims, the report adds.
Earlier, the state-run oil explorer had even written to DGH about the possibility of RIL drawing gas from blocks allotted to it. ONGC has around 11 discoveries in the KG basin gas fields and plans to develop G4 and KG-DWN blocks by 2017. As per ONGC estimates there is over 4 trillion cubic feet of gas reserves in the KG-DWN-98/2 block with an estimated output of 6-9 million standard cubic metres per day of gas.
According to the newspaper reports, ONGC feared that gas discoveries in its nomination block G4 (Godavari PML) and Block KG-DWN-98/2 (KG-D5) extends into RIL's KG-DWN-98/3 or KG-D6 block.