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 Paint makers to retain gloss with 10-12% growth in fiscal 2024
Paint

Paint makers to retain gloss with 10-12% growth in fiscal 2024

The paints sector will see revenue growth of 10-12 per cent in fiscal 2024, largely driven by volume expansion on the back of healthy demand from sectors such as construction, real estate, and automobiles.Healthy revenue growth of 18 per cent on-year was witnessed in fiscal 2023 as well. H...

The paints sector will see revenue growth of 10-12 per cent in fiscal 2024, largely driven by volume expansion on the back of healthy demand from sectors such as construction, real estate, and automobiles.Healthy revenue growth of 18 per cent on-year was witnessed in fiscal 2023 as well. However, this was primarily led by higher realisations on the back of a 6 per cent price hike taken by the players during the year, along with the full impact of a 20 per cent hike implemented in the third quarter of the previous fiscal.Anuj Sethi, Senior Director, CRISIL Ratings, says, “Demand for paint normally grows at 1.6x-2x of GDP. Decorative paints are likely to see a revenue increase of 11-12 per cent in fiscal 2024, driven by increasing renovation/construction activity and a greater preference for branded products from the increasing middle-class segment. On the other hand, 8-9 per cent revenue growth in industrial paints will be supported by higher government spending on infrastructure and steady demand from the automotive segment.”Healthy volume growth, along with moderating crude-linked input prices will ensure that the operating margin remains stable at 15-16 per cent in fiscal 2024. Besides, nearly debt-free balance sheets will continue to support the credit risk profiles despite all major paint companies being on an aggressive capex spree even as new players foray in.A study of five paint companies, which account for nearly 90 per cent of the organised sector revenue totalling Rs 650 billion, indicates as much.

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MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

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