See strong demand ahead, revenue growth in double digits in FY22, says Asian Paints

Mini

As India’s COVID cases are beginning to decline and several states are announcing a gradual easing of restrictions, Amit Syngle, MD and CEO, Asian Paints, discussed the current demand picture and the kind of pent-up demand he expects to see in the market.

As India’s COVID cases are beginning to decline and several states are announcing a gradual easing of restrictions, Amit Syngle, MD and CEO, Asian Paints, discussed the current demand picture and the kind of pent-up demand he expects to see in the market.
“Now that the economy is coming back on track, markets are opening slowly and lockdowns are getting relaxed, we see demand coming back very strongly,” he said in an interview with CNBC-TV18.
According to Syngle, there is always a pent-up demand, especially in the paint and the décor sector. “I am pretty positive that as and when the markets open, the economy will start picking up, we will see a lot of pent-up demand coming back in a strong way. Therefore, I don’t see any reason why the revenues should not be in high double digits,” he added.
The area of concern is institutional sales and large constructions. This is because it takes a little bit of time to stabilise and get into the mode of looking at expansions, new opportunities and businesses, he explained.
In terms of rural areas, Syngle shared, “In the second fortnight of April and May, the hinterland was definitely affected and the smaller towns were the ones that were not doing well to that extent.”
“We are anticipating a very strong and normal monsoon. We also have a larger and longer festive period, which is coming in. When we see good monsoon, the spring back of tier-III and tier-IV cities will be pretty good. So, to that extent, it is good that we now find tier-I, tier-II and metro cities springing back and at the same time, we are hopeful that tier-III and tier-IV cities also will come back very sharply,” he stated.
Syngle is very positive about FY22. “If the market continues opening up and we don’t have a real killer third wave of COVID-19, it should be a good year overall, going ahead,” he said.
On price hikes, he mentioned, “Inflation is definitely high. As compared to Q3, Q4 has seen higher inflationary prices. The same will be the case with Q1. This is on account of raw material prices. Therefore, we are likely to see more price hikes.”
For the full interview, watch the accompanying video.

Market Movers

CompanyPriceChange%Loss
Wipro543.25 -13.30
Shree Cements28,840.00 -399.05
Adani Ports734.45 -8.45
Kotak Mahindra1,739.80 -17.30
TCS3,273.80 -27.40
CompanyPriceChange%Loss
Kotak Mahindra1,740.00 -20.00
TCS3,274.55 -26.10
HCL Tech974.30 -7.15
HDFC2,504.90 -16.85
HUL2,474.00 -15.60
CompanyPriceChange%Loss
Wipro543.25 -13.30 -2.39
Shree Cements28,840.00 -399.05 -1.36
Adani Ports734.45 -8.45 -1.14
Kotak Mahindra1,739.80 -17.30 -0.98
TCS3,273.80 -27.40 -0.83
CompanyPriceChange%Loss
Kotak Mahindra1,740.00 -20.00 -1.14
TCS3,274.55 -26.10 -0.79
HCL Tech974.30 -7.15 -0.73
HDFC2,504.90 -16.85 -0.67
HUL2,474.00 -15.60 -0.63

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.36500.00000.00
Euro-Rupee88.62800.00000.00
Pound-Rupee103.56300.00000.00
Rupee-100 Yen0.67110.00000.00