Asian Paints drops after quarterly results as margin woes grip sentiment in paint stock

Asian Paints share price dropped nearly three per cent in afternoon trade on Thursday after India's leading paint manufacturer announced its July-September quarter results. At 2.31 pm, Asian Paints stock price traded at Rs 3,125.35 apiece on BSE, dipping 2.74 percent. The scrip had opened at Rs 3,200 and hit the day's high at Rs 3,240.85.

Asian Paints reported 32.83 per cent rise in consolidated net profit at Rs 803.83 crore for the second quarter ended September 30, 2022 driven by robust sales.

The company has posted a net profit of Rs 605.17 crore in the same quarter last fiscal year, Asian Paints said in a regulatory filing.

Revenue from operations stood at Rs 8,457.57 crore in the quarter under review as compared to Rs 7,096.01 crore in the year-ago period, it added.

Asian Paint has also announced to pay an interim dividend to its investors.  According to an exchange filing, Asian Paints will pay a whopping 440 per cent dividend. The dividend amount translates into Rs 4.40 of the face value of Re 1 each.

"The board of the company has further approved the payment of an interim dividend of Rs 4.40 per equity share of the face value of Re 1 each for the financial year ending March 31, 2023," the Mumbai headquartered company said.

Asian Paints has fixed the record date for determining the eligibility of the shareholders.

"Record date for the purpose of determining the entitlement of the shareholders for interim dividend has been fixed as Tuesday, November 1, 2022," it said.

Asian Paints informed that the dividend will be paid to the shareholders on or after Thursday, November 10.

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So far this year, Asian Paints has corrected more than 8 percent as surging input costs dampened sentiment in the stock.