Asian Paints Q4FY13 Net Below Expectations

India's largest paint company, Asian Paints, has disappointed the markets by clocking lower-than-expected growth in its Q4FY13 net profit. While the company reported 7.5% growth in its revenues to Rs 2733 crore, its net profit came 2% lower at Rs 251 crore on a year-on-year basis. The street was expecting a net profit of Rs 304 crore and a topline of Rs 2907 crore during the quarter. Following the results, its shares came down by 3.6% to Rs 4673 apiece by closing on Thursday, May 9, 2013.

During the quarter, the company has reported a nearly 50 basis points drop in its EBITDA margins. Its margins were at 14.48%, which was at the same level reported in the Q3FY13. The Other Income during the quarter was strong at Rs 38 crore, growing by 24% on a year-on-year basis.

For the full year, the company has reported 14% growth in its topline to Rs 10970 crore. Its net profit for the year has come in at Rs 1113 crore against that of Rs 988 crore in FY12. The full year revenues from the paint business have grown at 13.5%, while that from the other businesses have remained flat.

As per its balance sheet, Asian Paints has lowered its loan funds in the year. The debt-to-equity ratio is also strong at 0.07x. Its fixed assets have shown a strong rise from Rs 1876 crore in FY12 to Rs 2455 crore in FY13. Overall, the balance sheet seems to be in good shape.

The company has announced a subdivision of the stock from the face value of Rs 10 to Re 1. It has also declared a dividend of Rs 36.50 per share, taking its annual dividend to Rs 46 per share and the dividend yield to nearly 1%.

The MD of the company, K B S Anand has said that the growth of the company has been satisfactory during the quarter, but the industrial paints segment has been impacted due to the slowdown in the economy.