Mumbai: Third-quarter profit at India’s top paints maker Asian Paints lagged forecast, weighed down by rising input costs, but sales picked up on robust demand during the festive season.
The firm posted a net profit of Rs220 crore from Rs199 crore in the same period a year ago. Net sales jumped 30% to Rs2100 crore.
A Reuters poll of brokerages had forecast a net profit of Rs241 crore on net sales of Rs1961 crore.
“Demand condition for decorative business was good in the current quarter coupled with late Diwali,” P.M. Murty, managing director and chief executive, said in a statement.
“However, raw material prices rose sharply during the period and are expected to increase further going ahead,” he said.
The firm on Monday also announced the expansion of their joint venture with PPG Industries Ltd to accelerate growth in the non-decorative coatings business in India.
The paints maker also said it plans to form a second equal joint venture with PPG which will service the protective, industrial powder, industrial containers and light industrial coatings markets.
No financial details about these ventures were provided.
Asian Paints is also expanding capacity and is investing Rs735 crore to set up a 400,000-tonnes-a-year plant in Maharashtra.
It expects the first phase of the project to be commissioned by end-2012.
Shares of the company ended 1.45% down at Rs2,622 in a firm Mumbai market.