Asian Paints has not seen any kind of disruption or any differentiation from new entrants into the paints market, said CEO Amit Syngle.
The CEO was referring to the latest entrant into the paints landscape, Birla Opus, which is promoted by Grasim Industries Ltd, the flagship of the Aditya Birla Group. Birla Opus was launched in February this year.
Speaking in the post-earnings conference call for investors, Syngle added Asian Paints expects rising intensity in their efforts to make an impact, especially since the Group has made such a significant investment. "I'm sure we will see more action coming in the future months to that extent," added Syngle.
The Aditya Birla Group committed an upfront investment of Rs 10,000 crore towards setting up the paints business. Grasim aims to secure the second position in the decorative paints market, replacing Bеrgеr Paints India.
Also Read | Grasim Industries targets second spot in decorative paints market with Birla Opus
The intensity of competition has gone up across the board. As a result of poor demand conditions that impacted Asian Paints' earnings show for the July-September quarter, along with a higher seasonal impact, the industry leader often feels the highest impact and bears the largest brunt, added Syngle.
On the margins front, Asian Paints retained its EBITDA margin guidance of 18-20 percent for H2. "In the coming quarter, the full impact of the price hike will come in and we are hoping that some deflation and stability in crude prices will help us achieve that band," he said.
The company's Q2FY25 revenue from operations dropped 5.3 percent year-on-year to Rs 8,003 crore, missing the Moneycontrol poll estimate of Rs 8,528 crore. Consolidated net profit fell 42.4 percent to Rs 694.64 crore, lower than the poll's Rs 1,205 crore forecast.
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