Mumbai: India’s top paints maker Asian Paints said April-June net profit rose 23%, meeting street estimates, on rising sales in the decorative segment.
The company is, however, concerned over rising raw material prices leading to pressure on margins in FY11, it said in a statement on Tuesday.
The paints maker reported quarterly net profit of Rs201 crore on net sales of Rs1,491 crore.
The numbers were in line with a Reuter’s poll forecast of net profit of Rs197 crore on net sales of Rs1,633 crore.
“The company has done well during the quarter driven by favourable demand for decorative coatings across the country,” PM Murty, managing director and chief executive, Asian Paints, said in a statement.
“Demand for international and industrial business was challenging... Although, the automotive coatings business performed well,” he said.
However, rising prices of raw material remain a concern for the company.
“Prices have increased considerably and this would lead to pressure on margins in the coming quarters,” he added.
Shares of Asian Paints, which have risen 92.7% in last 12 months, closed at Rs2,437.75 on Tuesday, down 3.28%, in a firm Mumbai stock market.