Nestle, Abbott India, Asian Paints, Pidilite hit new highs on good earnings

Shares of five companies – Nestle India, Abbott India, Asian Paints, Berger Paints, and Pidilite Industries – from the S&P BSE 500 index hit their respective new record highs on the BSE on Friday after reporting good set of numbers for the April-June quarter of financial year 2019-20.

Nestle India gained 4 per cent to Rs 12,266 apiece, surging 7 per cent during current week, after the company reported a 11 per cent year-on-year (YoY) rise in net profit to Rs 438 crore for the second quarter ended June 2019, led by sales and volume growth. Total sales increased by 11 per cent at Rs 2,983 crore on YoY basis. The fast moving consumer goods (FMCG) company also declared a dividend of Rs 203 per share, including a special dividend of Rs 180 per share.

On the other hand, Asian Paints and Berger Paints, too, hit their respective highs of Rs 1,579 and Rs 358, respectively on the BSE in intra-day trade today, gaining in the range of 7 to 11 per cent, after announcing their June quarter results.

Berger Paints posted a better-than-expected 31 per cent YoY growth in consolidated net profit at Rs 164 crore in June quarter on the back of strong volume growth. The paint company's operational revenue grew 16 per cent at Rs 1,717 crore on YoY basis, while EBITDA (earnings before interest, tax, depreciation and amortization) margin expanded 170bps at 17.8 per cent from 16.1 per cent in previous year quarter.

Similarly, Asian Paints’ consolidated revenue, EBITDA, and net profit grew 17 per cent, 24 per cent, and 18 per cent to Rs 5,130 crore, Rs 1,160 crore and Rs 660 crore, respectively in June quarter. Its operating performance exceeded analysts' predictions with ‘high double-digit’ volume growth – in complete contrast to talks of slowing consumption demand in the country as evidenced in most consumer staples results.

Abbott India was up nearly 5 per cent to Rs 9,400 today, ralling 9 per cent in past two days, after the pharmaceuticals firm posted a 42 per cent YoY jump in the net profit at Rs 117 crore in the June quarter. The company's operational revenue during the quarter grew 18 per cent at Rs 999 crore on YoY basis.

Lastly, Pidilite Industries gained 8 per cent as compared to a 2 per cent rise in the S&P BSE Sensex during the week. The company reported a better-than-expected 22 per cent YoY jump in the consolidated net profit at Rs 294 crore in June quarter on strong volume growth. Operational revenue during the quarter grew 11 per cent YoY at Rs 1,768 crore over the same quarter last year with underlying sales volume & mix growth of 6 per cent. EBITDA margin improved 120bps to 22 per cent from 20.8 per cent in previous year quarter.

ABBOTT INDIA 9145.50 9400.00 9305.00 08-Aug-19
ASIAN PAINTS 1575.00 1578.85 1575.00 07-Aug-19
BERGER PAINTS 355.95 357.50 356.95 08-Aug-19
NESTLE INDIA 12115.00 12266.25 12025.65 01-Jul-19
PIDILITE INDS. 1348.45 1358.00 1332.00 08-Aug-19

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