Key highlights from Asian Paints Limited (ASIANPAINT) Q4 FY22 Earnings Concall
- ASIANPAINT stated that international business has been a very tough year overall, with debacle happening more from a profitability point of view, given the very high amounts of inflation. Devaluation of the currency also contributed to the tough year, especially Sri Lanka, Ethiopia and Egypt.
- Avi Mehta of Macquarie asked about the extent of price increase needed to pass on the current inflation. Amit Syngle MD replied that overall in 1Q23, ASIANPAINT has taken price increase of about 1.8-2%. Also, an initiative is also launched internally in terms of sourcing and formulation efficiencies, and looking at alternate RMs in a very strong way.
- Avi Mehta of Macquarie also asked about the demand strength. Amit Syngle MD said that price inflation did affect a little bit of a demand in terms of some of the T3, T4 cities in 4Q. However, February and March were high double-digit volume growth numbers. Going forward, the company is pretty confident about the consumer demand given the Feb, March indications.
- Avi Mehta of Macquarie asked about the positioning of Home Décor. Amit Syngle MD replied that the company is looking at this segment in what it calls as affordable luxury position. It is like fashion in terms of what one propagates.
- Shirish Pardeshi of Centrum Broking asked for the breakup of T1, T2 and T3, T4 contribution to overall Decorative business in FY22. Amit Syngle MD answered that contributions roughly for T3, T4 versus T1, T2 would be in the zone of about 40%, 45% to 60%, 65% kind of a zone. T3, T4 has been fueled by a large distribution strategy.
- Shirish Pardeshi of Centrum Broking asked about volatility in terms of currency headwind, on the international business, what quantum of the business is at stake because of the three geographies. Amit Syngle MD said that there is a Sri Lanka, Ethiopia and Egypt. Roughly, the quantum which would get affected is about 5-6% of the total group.
- Saumil Mehta from Kotak Mahindra Life asked about the non-direct dealer part and how big is that part of the business. Amit Syngle MD said there is no concept like a non-direct dealer. There are dealers which are paint dealers and there are dealers which are touching through the distributor. So with all these 1.45 lakh retail outlets, ASIANPAINT is almost directly in touch, either with the dealer or through the distributor.
- Varun Singh from IDBI Capital asked about kitchen, bath and waterproofing business, if the company is expecting much change at the top management level to manage growth in the next 3-4 years. Amit Syngle MD replied that today ASIANPAINT is putting people at GM and VP level as well in terms of some of these categories. It is more at the possibly mid-management to a senior level.
Cochin Shipyard Limited (NSE:COCHINSHIP) Q4 FY22 Earnings Concall dated May. 26, 2022 Corporate Participants: Madhu S Nair -- Chairman & Managing Director Jose V J -- Director Finance Analysts: Vastupal Shah
Can you guess the name of the company that was listed during the IPO frenzy in 2020 and is the second largest player in the Indian municipal waste management industry?
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