Indian stock markets indices shed some gains over the last two hours of trade though are still trading in the green. Barring Oil and gas stocks, all sectors are trading in the green led by Realty and metal stocks.
Container Corporation has announced its results for the third quarter FY12 (3QFY12). The company has registered a topline growth of 7.7% on a year on year (YoY) basis during the quarter. The operating profits during the quarter registered a 1.1% YoY decline, with operating margins at 26.5% (versus 28.9% last year). The quarter witnessed significant empty running due to imbalance with regards to business from export versus imports and imbalance between the ports. The net profits of the company were up by 5% YoY, with net margins at 23.1% (versus 23.6% last year). The performance was better at the bottomline level than at the operating level on account of an increase in the 'other income' and lower tax charges, partially offset by higher depreciation expenses. The market share of the company now stands at 74% (versus 75% last year). The company has also declared an interim dividend of Rs 7.5 recently.
Paint stocks are trading mixed with Kansai Nerolac and Asian Paints leading the gainers and Akzo Nobel and Jenson and Nicholson trading the weakest. As per a leading financial daily, Kansai Nerolac Paints has outlined a capacity expenditure plan of Rs 4 bn. The funds will be utilized to expand capacity by 95,000 tonnes to 3 lakh tonnes per annum by September 2012. In the December 2011 quarter, the company's sales grew by 18.8% to Rs 6.6 bn backed by 25% growth in the decorative segment and 16% increase in the industrial segment. Slowdown in the real estate and auto industries pulled down the demand for industrial paints during the quarter. The company's profits grew by a faster 26.7% to Rs 526.8 m. Going forward, the company plans to add 5-10 exclusive Nerolac Impressive Zone stores every year from the current 28 outlets and open 600 smaller stores on a franchise basis.