The company said its business has picked up progressively in tier 2, 3, 4 cities where the demand conditions were better, while in metros and some tier 1 cities, the pace of recovery is slow.
Asian Paints on Tuesday said its manufacturing facilities are working at up to 70 per cent capacities due to the impact of COVID-19 pandemic and resultant lockdowns. The company said its business has picked up progressively in tier 2, 3, 4 cities where the demand conditions were better, while in metros and some tier 1 cities, the pace of recovery is slow.
“All the operations which were disrupted since early March 2020 have seen resumption since early May, 2020. The company has been able to open all manufacturing plants after taking requisite Government permissions, Asian Paints said in a regulatory filing. The permissions are for running the plants across all the businesses to a limited capacity or even to a full capacity in some geographies, it said, pointing out that manufacturing facilities of the company are working at approximately 60-70 per cent levels.
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Asian Paints business divisions include decorative, home improvement and industrial operations. The business in India saw improvement in demand conditions over May and June after a complete washout in April, 2020, it said. The company has re-opened approximately 95 per cent of sales offices with full precautions on safety, social distancing and hygiene drills and it is continuously monitoring the situation and will resume operations in remaining workplaces basis the situation and necessary government permissions.
“July has been challenging in terms of sporadic lockdowns across various states. Till now the indications seem to be positive and the company believes that it will tide through this crisis by focusing on its core strengths, understanding the changing customer requirements and fulfilling these requirements through innovative market approach,” the company said.
Asian Paints had reported a 67.32 per cent decline in consolidated net profit to Rs 219.61 crore for the first quarter ended June 30, due to complete washout of business in April. The company had posted a net profit of Rs 672.09 crore during April-June quarter of the previous fiscal.
Its revenue from operations was down 42.74 per cent at Rs 2,922.66 crore during the quarter under review as against Rs 5,104.72 crore in the same period previous fiscal. Shares of Asian Paints were trading 1.67 per cent higher at Rs 1,733.35 apiece on the BSE.