Shares of Asian Paints continued to decline for the second day as the price of Brent Crude surged to $90 per barrel. On September 15, stocks of Asian Paints were trading at Rs 3,212 at open, 0.8 percent lower on the NSE.
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Over the last two days, shares of Asian Paints have seen a 2.5 percent decline. The surge in oil prices has indeed adversely impacted the paint manufacturing industry, primarily because many raw materials used in paints are petroleum-based. The increase in input costs for important raw materials could impact the total manufacturing cost and in turn pressure on margins of paint companies.
Also read: Brent crude surge to $90 boosts upstream oil stocks, but upsets paint makers
As of mid-day, the shares of Asian Paints were trading at Rs 3,200, down from Rs 3,240 at close on September 14. The trade volume at that time was 753,501.
Also read: Asian Paints – Volumes, margins shine bright in Q1, but is there a stain?
In the quarter ending June 2023, Asian Paints had reported consolidated net profit at Rs 1,574.84 crore, up by 52 percent from Rs 1,036.03 crore in June 2022. Total revenue had also grown to Rs 9,182.31 crore, a 6.68 percent year-on-year increase.
Overall, when it came to Q1 FY24, MD & CEO, Amit Syngle believed that it had been a strong quarter for the paint manufacturer. "it has been a strong quarter from overall volume growth which we have been able to deliver. This has also been a consistent promise and what we have been pursuing for the last 12 quarters, " he said during the earnings call.
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