Demand recovery unlikely to offset margin pressures for paint companies

Companies to post double digit volume growth in the quarter

Buoyed by robust demand for the first two months of the quarter and a favourable base, paint companies are expected to post healthy performance in the June quarter. Listed paint majors could report a 30 per cent plus revenue growth y-o-y aided by double digit volume increase in decorative paints and cumulative gains from pricing action.

In the last quarter, volumes had declined for all players due to the Omicron virus and channel disruption. Most of the 14 per cent growth in the previous quarter was on account of pricing action. Analysts led by Percy Panthaki of IIFL Research say