The performance of the company seems to be only getting worse over the quarters, Q1 was not good, Q2 was also bad and now Q3 also does not look very good. Sequentially, net profit at Rs.2 crore, is down 7% and YoY, it was down by a huge 60%. Net sales is at Rs.61 crore, flat YoY and QoQ, it was up hardly 2%. Its main raw material is copper scrap which is procured either domestically or imported and most are derivatives of crude oil. Raw material cost has risen 23% (QoQ) and up 26% (YoY). Power and fuel cost was also up 31% (YoY) and up 21% (QoQ).

This company manufactures pigments for the chemical industry and it supplies to leading companies like BASF, Clariant. It has two plants, one at Baroda and one near Ahmedabad. As at 31st Dec 2012, promoters hold 61.48% and interestingly, Clariant Chemicals holds 5.86% in the company. Another Japanese company, Dainippon Ink & Chemicals Corporation is its client and it also holds 7.05% stake in the company. Asahi derives more that 90% of its total revenue from overseas market and thus fluctuation in foreign exchange, increasing raw material prices and global slowdown remain major threats to the company.