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    Sporadic lockdowns can spoil the continuity of business, says Asian Paints

    Synopsis

    The company saw sales halting since end of March while April was a complete washout. While there was a lot of this pent-up demand, June sales indicated new demand from homes across the country.

    paint agenAgencies
    MUMBAI: Asian Paints, the country's largest paints company, said June sales expanded by double-digit helped by faster growth in smaller towns but sporadic lockdowns can spoil the continuity of business.

    The company saw sales halting since end of March while April was a complete washout. While there was a lot of this pent-up demand, June sales indicated new demand from homes across the country.

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    "The business picked up progressively in Tier 2, Tier 3 and 4 cities where the demand conditions were better; however, in metros and some Tier 1 cities, the business was much slower. While the business achieved about 80% of the base volumes in May, we managed to register a double-digit volume growth in -- of more than 14% in the month of June," said Amit Syngle, managing director at Asian Paints Limited at an investor call.

    The company posted a 44% decline in revenues at Rs 2446 crore while net profit fell 61% to Rs251 crore during June quarter.

    "Customers seems to be now adjusting to the environment in terms of saying that there would be some disturbances which will come in and the fear factor is something which is more the adjustment which the customer is making. Sporadic lockouts, what do they do is that they kind of spoil the continuity of business. If they continue to happen, they will definitely have an effect on the demand," Syngle added.

    While the consumer facing decorative business improved over the last two months, the automotive coatings business continued to be severely impacted with the COVID-related business restrictions, adding further to the slowdown pressures in the auto industry.



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