Asian Paints recently reported its Q3 earnings. This has been the company’s best ever performance with a big beat across all parameters.
Amit Syngle, MD & CEO of Asian Paints said that there was growth across verticals in Q3. However, the Indian decorative business was one of the best performers, he said.
“Q3 has been phenomenal in terms of what we see with growth rates of upwards of 30 percent which have happened. The stellar business has come in, in the Indian decorative business which is there where the growth rates are more than 32 percent by volume and about 26 percent by value to that extent. This is something which has been really stellar because it has added to the market share from the organized sector as well as the unorganized sector in a very strong way,” he said in an interview to CNBC-TV18.
Syngle said that the industrial and international segments too have picked up strongly. “The industrial sector, growth rates have been in double digits. They have really picked up from what we saw in Q2. Q3 has been very strong for the industrial sector. The international sector, again double digit growths which are coming in, in Q3, over the double digit what we saw in Q2,” he said.
According to Syngle, Q4 should be good as consumer sentiment has improved. He expects to maintain the double digit growth in Q4 as well.
“We think that Q4 should also be good because the consumer sentiment is good. However, it is very difficult to say what would be a sustainable zone going ahead. There are elements of pent up demand which are coming in which is difficult to quantify. We also see that the construction and real estate sector is picking up and therefore institutional business is going up. Metros and tier-I, tier-II cities which were not doing so well in Q1, Q2 are coming back strongly. So, for Q4, I think double digit number should stay,” he said.
Syngle believes that Q4 may see an impact in terms of raw material inflation. However, despite the raw material inflation, he said that Asian Paints will be able to maintain margins.Watch video for more.