India (Commonwealth) _ Along with its July-September quarter earnings report, Asian Paints paid an interim dividend of Rs 5.15 per equity share of the face value of Re 1 each for the financial year ending 31st March 2024, or a 515 percent payment.
The board of the biggest paint firm in India has set November 3 as the record date in order to calculate the shareholders’ right to an interim dividend. The dividend will be distributed to shareholders on or after November 13 in accordance with the company’s communiqué.
On Thursday, October 26, Asian Paints released its September quarter results. The company saw a 53.31 percent increase in profit after tax from Rs 803.83 crore in the same quarter previous year to Rs 1,232.39 crore in the period under review. The business’s operating income for the September quarter increased by 0.24 percent to Rs 8,478.57 crore from Rs 8457.57 crore during the same time the previous year.
On Thursday, October 26, Asian Paints shares closed 3.59 percent down at Rs 2,951 on the NSE due to widespread weakness in the country’s equities market.
Our margins were boosted in Q2 by operational, formulation, and sourcing savings as well as a little increase in raw material costs, which contributed to the quarter’s robust profit rise. Amit Syngle, managing director and CEO of Asian Paints, stated, “We remain optimistic about improved demand conditions heading into the second half of the year, well supported by the longer festive season and the overall buoyant domestic economic growth.”
The decorative paints division witnessed a 6% volume rise for the firm during the reviewed quarter. Additionally, its industrial paints division saw a constant increase in sales.
However, due to a number of macroeconomic obstacles, income from overseas business decreased by 3.9% to ₹775 crore. Despite strong development in the Middle East and overall better profitability, Syngle stated that macroeconomic issues, inflation, and the lack of foreign exchange in crucial regions such as South Asia and Egypt continued to be barriers to the company’s worldwide operations.
Moreover, the home décor business’s revenue in the second quarter of the current fiscal year was muted. The kitchen and bath fittings categories experienced a decline in revenue to ₹81.4 crore and ₹96.8 crore, respectively, but the White Teak vertical saw a rise in revenue of 8.5% to ₹26.1 crore, and the Weatherseal vertical saw a twofold increase to ₹12.6 crore.
We proceeded to fortify our décor push with new collections, network, and store extensions, he stated, even though demand in the home décor area remained subdued due to dampened consumer attitudes.
Asian Paints’ shares are probably going to trade ex-dividend on the day or a day prior to the record date. A company’s stock loses the value of the upcoming dividend payment when it goes ex-dividend on a specific day. Which stockholders are entitled to the dividend payment is also determined by an ex-dividend date.
Since October 16, 2000, Asian Paints has announced 50 dividends. Trendlyne data shows that Asian Paints declared an equity dividend of ₹25.65 per share in the last 12 months. With a share price of ₹3,007.65 now, this translates into a 0.85% dividend yield.
The paint manufacturing business reported volume increase of 6% for the September quarter, which was less than the 7% to 9% predicted by the CNBC-TV18 poll. Value-added sales were unchanged. Over the quarter, the domestic coatings business—decorated and industrial combined—saw a muted 1.1% sales rise.
Asian Paints reported ₹8,479 crore in revenue, less than the ₹8,900 crore CNBC-TV18 poll’s prediction. The ₹1,717 crore operating profit or EBITDA was less than the ₹1,800 crore forecast in the CNBC-TV18 survey.
