Story

Why Asian Paints share rose 10% in early trade

Asian Paints share climbed up to 9.97% to Rs 2,811 against previous close of Rs  2,556 on BSE.

Asian Paints' net profit rose to Rs 869.89 crore for the fourth quarter ended March 31, 2021, helped by volume growth in the domestic as well as in the international market.

Asian Paints share rose nearly 10% in early trade after the firm reported a 81.13 per cent rise in its consolidated net profit in Q4. Asian Paints share climbed up to 9.97% to Rs 2,811 against previous close of Rs  2,556 on BSE.

The share opened at Rs 2,620 on BSE. The stock has gained 83.55% in one year and risen 1.02% since the beginning of this year.

Market cap of the firm rose to Rs 2.67 lakh crore.

Total 1.80 lakh shares of the firm changed hands amounting to turnover of Rs  49.35 crore on BSE.

The share hit its 52-week high of Rs 2,871 on January 11, 2021 and 52-week low of Rs 1,482 on May 19, 2020. The stock trades higher than 5 day, 50 day, 100 day and 200 day moving averages but lower than 20 day moving averages.

Net profit rose to Rs 869.89 crore for the fourth quarter ended March 31, 2021, helped by volume growth in the domestic as well as in the international market.

The company reported a net profit of Rs 480.25 crore during the January-March quarter of the previous fiscal. Revenue from operations rose 43.49 per cent at Rs 6,651.43 crore in Q4 against Rs 4,635.59 crore in the corresponding period of the previous fiscal.

Commenting on the results, Asian Paints Managing Director & CEO Amit Syngle said: "We have seen a very strong quarter aided by good demand across rural and urban areas at the country level."

For the fiscal year 2020-21 ended on March 31, 2021, Asian Paints' net profit rose 15.59 per cent at Rs 3,206.75 crore against Rs 2,774.19 crore profit in the previous year.

Revenue from operations in the fiscal climbed 7 per cent to Rs 21,712.79 crore against Rs 20,211.25 crore in 2019-20.

The firm has recommended a final dividend of 1,450 per cent, which is Rs 14.50 per equity share of the face value of Re.1 each for the financial year ended March 31, 2021.