The company, which announced its numbers after the markets closed, posted a set of disappointing numbers for Q4FY13. Net sales was at Rs.806 crore, up 9% (YoY) but QoQ, it was down 12%.  Operating expenses, though in absolute terms was down 10% sequentially, in terms of percentage of the net sales, it was at 91% compared to 89% in Q3. This was slightly lower than 92% in Q4FY12. Tax outgo was also higher at Rs.27 crore. Net profit came in at Rs.44 crore, flat YoY but QoQ, it was down 43%. Seasonally, Q1 for paint companies is weak and thus when compared QoQ, the numbers do not look good. The company ended the year with a net profit at Rs.218 crore, up 20%.

The company’s strategic shift from industrial to decorative paints during the quarter is helping growth. It is mainly decorative paints which is driving the growth. Industrial paints growth is down to slowdown in infra and automobile sector, its two biggest clients. There were rumours of the company taking over Shalimar Paints but the company issued a statement denying these rumours but it remains open to acquisitions for better inorganic growth. In terms of market share in industrial paints, Asian Paints is clearly the leader, followed by Berger, third place is help by Kansai Nerolac and AkzoNoble comes in at fourth.