Asian Paints

“I'm proud to announce that in September we started our VAE facility and this is something which has been implemented in a record time and with utmost safety.”

“So, partial benefit in Phase 1 and full benefit as we get into a good part of phase two.”

“What we are confident about is that, as we go forward, within a year's time we should be able to ramp up to full capacity offering this GenNext emulsion which comes in a very different way.”

“As we go, we will be looking at a part of the overall capacity of what we will utilize till March”

“we have been able to grow at a good volume of about 6.4% at the base of the last year, which was almost about an 11% growth in terms of a like-to-like quarter.”

“so I spoke of a 6.4% volume growth, the value growth has also been very strong at 14.5%.”

“If you look at from an H1 perspective, again, the volume growth is pretty strong at about 8% and the value growth being closer to 16%.”

“deco plus industrial stands at about 16.4% and a volume at about 6.8%.”

“This quarter we have seen both Bath and Kitchen have been strong. Good growth coming in those categories. Similarly, Weatherseal we saw good growth. White Teak was the only one where the growth has been slower.”

“What trend we see very clearly is that, the rural markets are still leading over the urban markets. The only difference here is that when we look at the B2B business, we see strong performances in some of the urban markets, especially the T1, T2 cities.”

“To some extent, the last quarter basically saw some deferment also because this time is the longer Diwali in November.”

“See, given the longer Diwali, we should get good traction from the October-November period of quarter three. We also have a wedding season which is coming, while rural will come into some question with the monsoon deficit of what is really, we are talking of”

“However, what we also see is that the competitive intensity of what you do, possibly at the network level overall in terms of promotions and so on and so forth, has remained the same. In fact, it has only gone up. So possibly, a lot of players would be in the same boat, not covering the full inflation at the same time, the expenses being high.”

“So, when we look at quarter two, we've borne the full impact of the inventory, in this quarter.”

“So, we have basically a PBT which is up by almost 10%, but the margin has fallen a little bit to about 14.2% by 309 bps.”

“on the bottom line there has been a little bit of a setback here, given the fact that the price increases came with a little bit of a delay.”

“this is despite the fact that we have taken a 7% price increase in quarter one, almost about a 5% price increase in quarter two, but it doesn't match the inflation and to top it all, we've had inflation of about 3% in quarter two as well.”

“If you see from a like-to-like quarter perspective, PBDIT margin is about 17.1% compared to the last year, same quarter which was about 18.5%.”

“Historically we have seen that, this has been a little bit of a soft quarter from a point of view of the bottom line, especially because today the product mix in this quarter is a little bit subdued.”

“First, it is in specific segments but across the price range, okay.”

“We've launched this whole area of ‘Chromacosm’ which talks of more than 5,000 shades which is the world's largest color system.”

“therefore we are launching shade guides in each of the five regions which are very specific to these regions”

“in terms of the “Apcolite” new premium emulsion in satin which we have launched”

“At the same time, it is something which has got a very different technology, again, a polyurethane chemistry which is basically gelling with the alkyd chemistry what we bring, with a four-year warranty.”

“So going by that, we have announced an interim dividend of Rs. 5.75. We've broadly looked at the same payout ratio of about 21.4% in H1 FY27 as compared to what it was last year.”

“The overall outlook continues to be a little bit volatile. Obviously, we see raw material inflation which is really happening. Overall, the volatility continues. The competitive intensity in the market is also very strong and challenging.”

“which is about the Anti-Dumping Duty which we see in TiO₂. It's announced effectively from 24th October”

“But having said that, it could have an impact from anywhere between 2% to 3% of the overall thing.”

“And as we go forward, obviously we'll have to watch out how the China pricing basically stands because last time also what we had seen is that the prices didn’t increase to the same extent.”

“today the new products contribute to about 18% of the revenues which just shows that the innovation cycle, what we speak is very strong and robust.”

“If you were to look at the overall standalone financials, the net sales growth is 14.8%.”

“The PAT is still stronger, at about 15% growth which is very healthy, obviously aided by other income, what we have been able to get.”

“You have the net sales growing at about 17% in quarter two. The PBDIT margin is little bit lower at about 15.6%, lower by about 202 bps.”

“But overall, PAT is at about 7% growth from a quarter two perspective.”