Mumbai, May 18 (IANS): Paints major Asian Paints on Monday said its consolidated net profit for the fourth quarter of 2014-15 increased by 18.6 percent at Rs.341 crore against Rs.287.4 crore in the same time period in 2014.
Falling raw material prices have been stated to be the primary factor boosting its profitability.
The income from operations, during the first three months of the current year increased by 6.9 percent to Rs.3,535 crore against Rs.3,307.1 crore during January-March 2014.
"In the decorative business segment in India, we registered single digit volume growth in the fourth quarter (January-March 2015) due to poor demand conditions. Profitability improved due to falling raw material prices," said the company's managing director and CEO K.B.S. Anand.
He said the company's joint-venture in the automotive coatings business was "supported by growth in the general industrial category while the lower growth in automobile sales impacted the automotive coatings business".
Its industrial coatings joint-venture (JV), however, registered good growth during the fiscal time frame under review.
"However, the business conditions for the industrial coatings JV remains challenging given the slow pace of growth in industrial activity," he said.
The company said its international business performed well amidst challenging market conditions in some key markets like Egypt. During the review-period the company acquired a controlling stoke in Kadisco, a leading paint companies in Ethiopia.
He said weak consumer sentiments and slower ramp-up than the company's expectations impacted demand for its Kitchens (Sleek) and Bath Fittings business segments in the Home Improvement business category.
For fiscal 2014-15, the company's profits went north by 14.5 percent at Rs.1,395.2 crore against Rs.1,218.8 crore during 2013-14.
Its income from operations, in 2014-15 rose by 11.5 percent at Rs.14,182.8 crore compared to its earnings of Rs.12,714.8 crore during 2013-14.
Its Board of Directors has recommended a final dividend of Rs.4.30 per equity share.