Asian Paints - India’s largest paint manufacturer - has reportedly hiked prices by up to a percent across the portfolio, sending the shares to the top of the gainers pack on Nifty 50 index in a weak market.
Citing sources, CNBC-TV18 reported that the paint company has hiked prices by 0.7-1% across portfolio.
Speaking to CNBC-TV18, Berger Paints confirmed a 0.7-1 percent price hike that it has undertaken w.e.f July 22.
Market watchers may closely track if other companies such as Kansai Nerolac, Akzo Nobel too will follow suit and increase prices.
Asian Paints had reported consumption demand moderating in FY24 on the back of retail inflation, particularly in the rural markets. The company expects Q1FY25 demand to be supported by a favourable monsoon and higher rural wages, which may lead to greater discretionary spending.
Asian Paints has said after the April earnings call that its strategy going forward is to focus on brand's equity rather than pricing pressure. “Such pressure tends to be unsustainable, as competitors may always aim to undercut. Instead, we aim to invest in the brand's long-term growth.” the management had said in May.
Asian Paints reported a consolidated net profit of Rs 1,275.3 crore for the March quarter, posting a rise of 1.3 percent from Rs 1258.41 crore a year ago. The total revenue of the company stood at Rs 8,730.76 crore, down 0.64 percent from Rs 8,787.34 crore last year, it said in a regulatory filing.
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