Paints Industry

Q3 witnessed weak volumes; valuations do not factor in risks

The paint major's net sales increased by 1.3 per cent to Rs 8,636.7 crore

The company had posted a consolidated net profit of Rs 1,031.29 crore in the same period last fiscal, Asian Paints said in a regulatory filing

The company was scouting for a 40-50 acre-plot in Odisha, says Abhijit Roy, MD and CEO, Berger Paints

Sales performance in the festival season was muted; volumes expected to recover

Despite the raw material pressures, the company posted a 172 bps expansion in operating profit margins as compared to the year ago period, given operating leverage benefits

The management foresees uptick in demand across the paint industry to be driven by strong expansion in the infrastructure, core sector, automotive, and real estate industries.

Listed paint companies could report over 30 per cent revenue growth year-on-year (YoY), aided by double-digit volume growth in decorative paints and cumulative gains from pricing action

Margins could be badly impacted, while weak demand across segments could disrupt top lines

Berger Paints India Ltd on Tuesday said it was monitoring the cost pressure in the wake of crude price hardening but will take a call after tracking the demand scenario. With crude oil trading above USD 100 per barrel owing to Russia's invasion of Ukraine, cost pressure will mount if the geopolitical uncertainties continue for a few months. "We are monitoring the situation closely but not raising the price in a haste. We will take a call after monitoring the demand scenario also. Price rise impacts volume demand," Berger Paints MD & CEO, Abhijit Roy, told PTI. Berger had hiked prices in the last one year to offset input cost inflation, the company said. Roy explained that out of the four major ingredients of making paints, one is linked to crude. It is the solvent binder, which is a derivative of crude. However, its price is more affected by demand-supply issues than the price of crude itself, he said. Overall, solvent binder forms about one-third of Berger's raw material ...

While the first three weeks of April saw robust demand in what is considered a seasonally strong period, lockdown in multiple states has seen offtake collapse

Asian Paints on Thursday reported a 62.28 per cent jump in its consolidated profit to Rs 1,265.35 crore for the third quarter ended December 31, 2020. The company had posted a profit of Rs 779.71 crore during the same period of previous fiscal. Revenue from operations for October-December quarter stood at Rs 6,886.39 crore, up 25.43 per cent, as against Rs 5,490.11 crore reported in the same period of 2019-20 fiscal, Asian Paints Ltd said in a regulatory filing. Amit Syngle, Managing Director & CEO, Asian Paints said demand conditions continued to exhibit a strong recovery across business segments, spread over most regions in the third quarter of this financial year. "The domestic decorative business delivered a powerful performance with more than 30 per cent volume growth led by a strong performance in premium and luxury portfolios. The Home Dcor foray of Asian Paints got a big fillip from a strong performance of the Home Improvement business". Syngle said the international ...

For the quarter under review, analysts at IDBI Capital expect a strong recovery in the decorative coatings business compared to 1QFY21.

A 57 per cent market share in the automotive paints segment makes Kansai Nerolac the largest segmental player

In addition to paints, construction chemicals and home decor could add to incremental growth

Total income declined 58.23 per cent to Rs 647.08 crore during the quarter under review as against Rs 1,549.18 crore in the corresponding quarter a year ago

Market share gains and focus on product premiumisation are helping these segments

With the crude oil prices moving up and rupee falling further, the key worry is the ability of paint companies to pass on the costs without impacting volumes and market share

The decorative paint market is expected to witness CAGR of 12.7%