• Quarterly performance: Asian Paints posted around 11% value growth and 12.7% volume growth with PBTIT margins expanding by 210 basis points year-on-year to 19.4%. Double-digit growth was recorded across all divisions, including decorative, industrial, decor, and global businesses.
• Pricing and premiumization: The company implemented a 10.6% price hike alongside an additional 2% to 4% increase to counter raw material inflation. Management expects the value-volume gap to stabilize at 3% to 4% going forward due to an increased focus on premiumization.
• International business outlook: Middle East markets such as the UAE, Bahrain, and Qatar face an estimated 5% to 15% demand contraction due to geopolitical tensions. However, management expects robust demand in Asian markets like Nepal, Bangladesh, and Sri Lanka, as well as Africa, to offset these regional declines.
• Competitive intensity: Aggressive discounting and intense competition from both new entrants and merged industry players are projected to persist and potentially rise through the first half of the upcoming year.