Asian Paints anticipates no disruptions in pricing moving forward, owing to stable raw material prices.
The management said in a post earnings conference call that some of the crude derivatives like monomers have shown some signs of pickup in the paint market. “But the key raw material which is Titanium dioxide (TiO2) is still stable in terms of the overall value.” said Amit Syngle, Managing Director and CEO. Titanium dioxide (TiO2) is a white pigment used in over 90 percent of paint products, to decorate and protect surfaces/objects in both consumer and industrial settings.
That management foresees prices to remain benign in Q1FY25, but going forward there might be some inflation, it added.
Read more: Asian Paints Q4 net profit rises 1.3% to Rs 1,275 crore, revenue down marginally
The company has implemented a price decrease of approximately 3.7 percent, which has narrowed the usual gap between volume and value numbers. As a result, the overall value was slightly lower, about minus 1.8 percent compared to the base.
The management said that competitors consistently price themselves lower, some even by up to 15 percent. The company does not see this gap narrowing down in the course of FY25.
The company’s strategy moving forward is to focus on enhancing the brand's equity rather than engaging in 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.” said Syngle. However, the company remains adaptable to unforeseen geopolitical events that may require pricing adjustments.
Asian Paints on May 9 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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