Asian Paints gains as subsidiary signs agreements with GCPL to set up facility

Shares of Asian Paints gained 0.7 percent at the open on March 7, a day after the company said that its subsidiary had signed agreements with Gujarat Chemical Port Limited (GCPL) to set up ethylene storage and handling facility in Dahej.

At 9.20 am, the stock was trading at Rs 2,846.85 on the NSE.

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In a regulatory filing, Asian Paints (Polymers) (APPPL) had entered into agreements with GCPL to set up an ethylene storage and handling facility in Dahej.

APPPL will be providing a security deposit of Rs 460 crore to GCPL which will be refunded over a period of 17–18 years. This would be in addition to the cost of setting up the VAM and VAE (vinyl acetate ethylene emulsion and vinyl acetate monomer) manufacturing facility of Rs 2,100 crore.

For Q3FY24, Asian Paints reported a consolidated net profit of Rs 1,475.16 crore for Q3FY24, up 34.4 percent from Rs 1,097.06 crore in the previous fiscal. Revenue for the same period also grew 5.4 percent year-on-year (YoY) to Rs 9,104 crore against Rs 8,636.7 crore in Q3FY23.

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