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ASIAN PAINTS LTD. - 500820 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

 Please find enclosed the intimation letter dated 17th August, 2021 received from our Registrar and Transfer Agent - TSR Darashaw Consultants Private Limited, providing information regarding loss of share certificate by the shareholder of the Company. Duplicate share certificate will be issued after completion of necessary procedures prescribed by Law. This information is being submitted pursuant to Regulation 39(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
18-08-2021
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Asian Paints Ltd - 500820 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

 Please find enclosed the intimation letter dated 11th August, 2021 received from our RTA - TSR Darashaw Consultants Private Limited, providing information regarding loss of share certificate by the shareholder of the Company. Duplicate share certificate will be issued after completion of necessary procedures prescribed by Law. This information is being submitted pursuant to Regulation 39(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is for your information and record.
12-08-2021
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Asian Paints Ltd - 500820 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation

 This is to inform you that the Company through its representatives will be participating in the Conference Call(s) as enclosed. The schedule may undergo change due to exigencies on the part of Investors/Company. This is for your information and record.
09-08-2021
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Asian Paints Ltd - 500820 - Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations, 2011.

 The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on August 06, 2021 for Sudhanva Investments & Trading Co. Pvt Ltd
06-08-2021
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Asian Paints Ltd - 500820 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

 Please find enclosed the intimation letter dated 4th August, 2021 received from our RTA - M/s. TSR Darashaw Consultants Private Limited, providing information regarding loss of share certificate by the shareholder of the Company. Duplicate share certificate will be issued after completion of necessary procedures prescribed by Law. This information is being submitted pursuant to Regulation 39(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is for your information and record.
04-08-2021
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Asian Paints Ltd - 500820 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate

 Please find enclosed the intimation letter dated 27th July, 2021 received from our RTA - M/s. TSR Darashaw Consultants Private Limited, providing information regarding loss of share certificate by the shareholder of the Company. Duplicate share certificate will be issued after completion of necessary procedures prescribed by Law. This information is being submitted pursuant to Regulation 39(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is for your information and record.
28-07-2021

Asian Paints sacrifices margins for market share, as Grasim looms

 Asian Paints entered FY22 brimming with confidence. In Q4FY21, revenues rose by 43%, backed by stronger sales volumes even as the second Covid-19 wave disrupted operations at the end of the quarter. But asa consumer-facing company, Asian Paints’ management knew spending on paints would fall amid lockdowns, especially in urban areas. This forced the company to look to rural areas for growth during Q1FY22. Another focus area that the management highlighted was the home improvement vertical, which consists of kitchenware, bathware, furniture, tiles, and home decor. This segment has not made a profit since FY14, the year it started. In May 2021, the management was confident that FY22 would be the year it breaks even. Is Asian Paints’ management too optimistic about the company’s prospects? Is the paints market leader’s performance in Q1FY22 a sign of things to come for the rest of FY22? Revenue declines QoQ, high input costs force price hikes In Q1FY22, revenues were Rs 4,786 crore, a rise of 96% YoY. This jump was on a low base in the year ago period, as sales in Q1FY21 were disrupted due to the nationwide lockdown during the first pandemic wave. Sequentially, revenues declined by 16% due to lockdowns imposed by state governments across India. Net profits rose by 2.3X YoY to Rs 596 crore. Due to the rising price of key inputs, Asian Paints’ earnings before interest taxes depreciation and amortization (EBITDA) margins consistently declined over the past two quarters. The cost of inputs used to make paints like pigments (mainly titanium dioxide) and polymers (crude monomers) have doubled YoY. In Q1FY22 alone, the cost of these inputs rose by 15%. In Q1FY22, EBITDA margins were 17.7%, down 20 basis points on a YoY basis. To pass on the impact of rising costs, Asian Paints hiked prices by 3% in April 2021. This price hike was lower than the 4-5% price hike which Asian Paints competitors took in May 2021. As the prices of these inputs continue to stay high, Asian Paints hiked prices again by 1% in July 2021. Volume growth continues in Q1FY22 Sales volume declined by 38% in Q1FY21 due to the national lockdown. Since then Asian Paints’ focus was growing its volumes. Input costs rose in Q3FY21, but paint companies held back on price hikes in order to grow sales volume. In Q1FY22, Asian Paints recorded a 106% YoY volume growth, due to a low base YoY. While the Q1 of both this year and last year were disrupted by lockdowns Asian Paints’ management said in the Q1FY22 earnings call that the lockdown impact this year was not as severe - this first twenty days of April 2021 and the entire month of June 2021 made up for the loss of sales volume due to lockdowns. Like last year, the management expects pent-up demand to rise in Q2FY22 and Q3FY22 especially due to a longer festive season. Asian Paints, being the market leader (42% market share as of FY21), enjoys a pricing advantage over its peers. This pricing moat will be wider now, with its relatively small price hikes in Q1FY22. Analysts suggest that Asian Paints tempered price hikes to increase its market share before the entry of Grasim Industries’ (Grasim) in the paints market. Grasim announced a capital expenditure of Rs 5,000 crore to build a paints business by FY24. This subsidiary is being positioned as second only to Asian Paints. In face of rising competition, the market leader is clearly fortifying its lead. Rural shift did not reap rewards in Q1FY22 Asian Paints’ stronghold lies in urban areas (60% of demand comes from tier 1 and tier 2 cities). However, this proved to be its downfall during the first Covid-19 wave as urban areas saw higher cases and stricter lockdowns. This is why in May 2021, during the peak of the second Covid-19 wave, the company said it would focus on rural areas in Q1FY22. Once again, the company would rely on its pricing power to take away market share from rural-focussed paint companies like Indigo Paints and Nippon Paint. However, rural areas were worse off than urban during the second wave of the pandemic. The lack of adequate healthcare facilities and the paucity of vaccines worsened the situation. This led to a decline in rural demand for paints which did not help Asian Paints’ new focus. However, urban demand from tier 1 and 2 cities rose in June as construction activities were permitted by state governments even during lockdowns. This increased the demand for its high value decorative paints in the luxury and super luxury categories. Asian Paints recorded a 95% growth in sales value in Q1FY2 because of increasing sales of high value products. In Q2FY22 and Q3FY22, Asian Paints’ CEO Amit Syngle expects a “splurge” in spending on paints in tier 3-4 cities. This would be helped by higher rural income due to normal monsoons. But in terms of brand awareness in rural areas, Asian Paints is lagging behind peers like Indigo Paints and Kansai Nerolac Paints. The market leader will likely spend heavily on advertising to expand its reach in rural areas in the coming quarters. Raw material cost inflation is already eating into margins and profits. Investors should pay attention to how Asian Paints manages its costs in the coming quarters. It should be noted that Asian Paints’ spend on advertising is 4.2% of annual revenues. Other paint companies’ advertising spend is 5-10% of revenues. Non-decorative paints perform well in Q1FY22, home improvement’s losses continue Asian Paints is primarily a decorative paints company (75% of revenue), but since FY14, the company diversified into one adjoining segment every year. This, the company hopes, will widen its moat against competitors. Over the years, Asian Paints diversified into waterproofing, putty, adhesives, primers, tiles, kitchen interiors, bath-ware, and home decor. In addition to the pent-up demand expected in Q2FY22 for decorative paints, the management expects ancillaries like waterproofing paints, and adhesives to perform well in Q2FY22. Analysts said that due to the non-availability of waterproofing paints and adhesives from unorganized players during lockdowns in Q1FY22, Asian Paints saw a boost in demand for these products. However, this was limited to tier 1-2 cities and not tier 3-4 cities. The key ancillary segment for Asian Paints is home improvement which consists of kitchenware, bathware, home decor, and tiles. Given the enormous size of Asian Paints’ paints vertical, this segment contributed only 1.2% of Q1FY22 revenues. However, it hasn’t recorded an operating profit since FY14. At the start of FY22, the management expected home improvement to break even in the year due to the momentum seen in FY21. Due to lockdowns, this fizzled out. In Q1FY22, the home improvement segment’s revenues declined 41% sequentially and the operating loss increased by 10.8X to Rs 2 crore. Asian Paints’ management said that home improvement’s revenues will take time to grow. They estimate that the segment’s contribution to overall revenues will remain below 10% for the next few years. The company’s spending plans indicate its own bullishness about this segment: the management did not outline any capital expenditure (capex) for the home improvement segment in FY22, although it has sufficient free cash flows for capex. Gaining market share before Grasim’s entry A reason Grasim will pose a greater threat to Asian Paints is because of its subsidiary UltraTech Cement’s distribution reach. Through Birla White, the white cement and putties maker under UltraTech, Grasim will have the second-largest dealership network. Analysts suggest because of this threat, Asian Paints is behaving like a market challenger, not like a market leader. The company is sacrificing margins by not hiking prices as much as competitors because it wants to increase its market share. As Asian Paints’ market share is lower in rural areas, it will focus here for the rest of FY22. However, given that during the second wave rural areas were the worst hit, this strategy could backfire, especially in the event of a third wave or a weakening monsoon.
28-07-2021
Bigul

ASIAN PAINTS LTD. - 500820 - Announcement under Regulation 30 (LODR)-Newspaper Publication

 Pursuant to Regulation 47 of the Listing Regulations, please find enclosed copies of notice given to shareholders regarding transfer of equity shares to the Investor Education and Protection Fund published in the following newspapers: 1. All India Edition of Business Standard 2. Mumbai Edition of The Free Press Journal 3. Mumbai Edition of Navshakti 4. Maharashtra Edition of Punyanagri This is for your information and records.
22-07-2021

Buy Asian Paints: target of Rs 3550: Sharekhan

 Sharekhan is bullish on Asian Paints has recommended buy rating on the stock with a target price of Rs 3550 in its research report dated July 20, 2021.
22-07-2021
Bigul

Asian Paints Ltd - 500820 - Announcement under Regulation 30 (LODR)-Earnings Call Transcript

 Please find enclosed the transcript of the investor call conducted after the meeting of Board of Directors on Tuesday, 20th July, 2021, with regard to the financial results of the Company for the quarter ended 30th June, 2021. This is for your information and record.
21-07-2021
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