Two price hikes in Dec qtr reverse Asian Paints' falling margin trajectory

The company expects March quarter (Q4) to be better than Q3

Two price hikes in the December quarter (Q3), which took the cumulative increase to 15 per cent, helped Asian Paints reverse four consecutive quarters of falling margins. The company posted a gross profit margin of 37.5 per cent, 180 basis points (bps) higher on a sequential basis while operating profit margins rose 540 bps sequentially to 19.6 per cent.

The company has been guarded on raising prices despite a sharp 21 per cent hike in raw material prices in the first half of financial year 2021-22 (H1FY22). The price hikes announced in H1 was 7 per cent. In Q3, input costs