A Strong Q4 For Asian Paints | Another Price Hike Of 2-4% From Mid-June, Says Company | CNBC TV18

Added: 2026-06-03

[00:00:00]But let's put the spotlight on Asian Paints, right? That's come off the day's high, but on Friday we saw it run up and trade strong numbers that was reported by the company. The margins of the company expanded. We saw the decorative business volume that came in over 12% as well. I spoke with the MD and CEO of the company, Amit Singhal, and I started off by asking about the volatility that we're seeing in commodity prices, right?

[00:00:22]The company has taken price hikes, but is it enough? What's the outlook in terms of impact of volumes?

[00:00:27]Listen in to that conversation.

[00:00:30]>> It's been a great quarter for us overall in terms of both value at about 11% and the volume at about 12.7. I think PBTIT margins have been strong in terms of what we've been able to register. Yes, I think the environment has been pretty volatile in terms of what we have been seeing, especially I think in the month of March, we have seen a lot of volatility in terms of the raw material prices.

[00:00:53]Overall inflation has been very high in terms of what we have been able to see.

[00:00:59]I think as a leader we've been able to kind of really see that we have taken some calibrated increases in the market till now about almost about 10.6% in terms of the price increases we have kind of already taken. We've announced another price increase of about 2 to 4% which will be effective in mid-June in terms of what we see to that extent in terms of going. So I think our entire endeavor has been that whatever we can take from a point of view of maintaining and not really affecting the customer demand at the same time. A part of this inflation we will continue to absorb through our cost excellence measures and seeing that as we go forward, we are able to maintain certain premiumization, able to look at a better product mix in terms of going forward, and therefore the endeavor going forward would be that due calibrated increase and see that the entire price inflation which is coming is not passed on to the consumer so that we are able to kind of see that the overall demand conditions are still kind of really strong because we also have an oncoming festive season which would be there and we would like really watch out in terms of the demand condition in terms of what really pans out in the market given the price increase we are taking.

[00:02:14]>> Okay, calibrated price hikes is what you want to take. You want to maintain, you know, absorb some bit to the margins as well. But sir, then this 12% 14% range, maybe we could say that comes into effect. That's going to be enough as of now or there's going to be a bit more that we could expect to see in Q2 as well.

[00:02:32]>> So, as we see it till now, I think currently it it takes care of the current environment in terms of where we are sitting. Obviously, we are watching the whole geopolitical situation in terms of how it goes. If the volatility continues, we might be able to force to kind of take something more. But currently, I think the endeavor is that we look at balancing in terms of whatever we pass on to the market because we really don't want to affect the demand conditions going forward to that extent and that that's the overall endeavor in terms of what we are aiming at.

[00:03:04]>> Okay.

[00:03:05]Point taken there, sir. Some margins also, what is the expectation? I believe you've said that you will maintain this 18 to 20% range, but could first half at least of FY27 see a bit more of an impact and then second half onwards you'll see a better recovery?

[00:03:22]>> See, given the current condition, it is very difficult to say in terms of how would possibly the year emanate. I think it's better that this year we look at quarter to quarter and therefore for quarter one, definitely what we are trying to see is that given the calibrated increases, given the strategy of premiumization, looking at a better product mix in terms of going forward, we should be able to kind of really guard the margins in the 18 to 20% bracket in terms of what we are kind of looking at going forward. And I think we will look in terms of seeing what really happens in Q2 and then the second half of the year as we kind of go by.

[00:03:59]>> So, you know, what about competition?

[00:04:00]You know, people have and other players also have highlighted competitive intensity that continues to be strong.

[00:04:07]Is that the case? What is the obviously you're the leader there, so discounting is better for you all, but in terms of competitive intensity any word there?

[00:04:17]>> So, as we see it, I think we have seen good competitive intensity last year as well and you know, our belief is that while everyone has taken price increases to that extent some people slightly higher, some people slightly lower.

[00:04:32]Basically largely everyone is in the same bracket in terms of the price increases in terms of what have been taken, but I think there is no letter up in terms of the discounting we see from the other players in the market to that extent. I think Asian Paints strategy has been very clear that we've taken a far more balanced approach in terms of spending strongly on the brand, maintaining the brand equity, looking at wooing the customer from a point of view of buying into the brand and so on and so forth. At the same time, I think calibrating our overall discounting in the market through to trade partners and other stakeholders which are there to that extent. And therefore, we feel that the intensity of competition will definitely continue in terms of the coming year to that extent and we do not know really in terms of how demand pans out. If the demand definitely shrinks to a little bit to that extent, I think the intensity would only increase.

[00:05:23]>> Okay. So, what about the international businesses well and the Middle East plant? Any concerns in terms of, you know, the plant being operational or any worry because of the current situation?

[00:05:34]>> So, yes, I think it has been a tough time in terms of what we have seen especially I think when we look at markets of UAE, Qatar, Bahrain. I think these markets definitely have had stress in terms of looking at it. We are seeing absolutely no exports which are happening from these markets in terms of what we used to do to that extent given the fact that the ports are closed.

[00:05:57]We have maintained a very strong way in terms of seeing that all our plants are open. I think there have been minor disturbances in terms of what we have seen here and there, but definitely I think there is a little bit of a toll in terms of the retail demand in terms of what we see because the overall construction segment has a little bit slow down in terms of what we see overall to that extent and therefore possibly from a normal situation I think definitely we see in markets of UAE, Bahrain a deficit of about, you know, 5 to 10% definitely in terms of the overall sale in terms of what we see.

[00:06:32]>> Okay. Just the last word sir from me is in terms of rural versus urban. Rural is outperforming urban, but is this any indication that we're seeing weaker spending coming in from the urban side?

[00:06:45]>> See, currently I think given the fact that last year the monsoons have been good. We've had I think fairly positive sentiment in terms of the agrarian output and so on and so forth in terms of what we have seen and I think that's something which is really kind of picking up the rural demand to that extent. I think it will also depend in terms of how possibly the current monsoons augur out in terms of going ahead. Obviously, there is something which is being speculated at the moment in terms of going forward, but definitely yes, I think the rural demand is definitely has a correlation to the whole area of monsoons and the agriculture in terms of how it pans out.

[00:07:23]So, I think we are watching it cautiously and hoping that I think the rural demand continues.

[00:07:29]>> Okay, so that's management of Asian Paints just about higher in by around 0.2% in today's trading session.