Mumbai, July 17 -- Asian Paints has raised selling prices by 12 per cent to mitigate a sharp rise in raw material costs linked to the conflict in West Asia, marking the steepest increase among major paint manufacturers in India. The company framed the move as necessary to offset inflationary pressures on inputs tied to crude oil and to protect long term margin sustainability while remaining attentive to consumer demand.
At the firm's eightieth annual general meeting the chairman, R Seshasayee, said the escalation of the conflict had created significant inflationary pressure on crude oil linked inputs. Management indicated that measured price adjustments of about 12 per cent were implemented as a response to these headwinds. It added that the company would continue a balanced approach to pricing, passing on only such adjustments as were necessary to safeguard demand.
Seshasayee observed that financial year twenty six was characterised by global uncertainty, shifting trade policies, tariff developments, geopolitical tensions and supply chain disruptions. He noted the conflict intensified in the final quarter, generating a sharp rise in energy prices and increasing pressure on imported raw material costs. Peer firms had taken smaller steps, with Berger Paints India and Kansai Nerolac raising prices by two to three per cent and JSW Dulux implementing a 10 per cent hike.
The company reported consolidated net profit for the March quarter that rose by 69 per cent year on year to Rs 11.855 bn, exceeding the CNBC TV18 poll estimate of Rs 10.6 bn; the year ago quarter included an exceptional loss of Rs 1.83 bn. Revenue climbed 10.6 per cent to Rs 92.47 bn from Rs 83.59 bn a year earlier. Shares ended lower on Monday by 1.06 per cent at Rs 2,649.40 on the NSE, according to market data.
Published by HT Digital Content Services with permission from Construction World.