Asian Paints clarifies CEO Amit Syngle’s GDP comment was misrepresented

On May 9, 2024, Syngle made certain comments about India’s gross domestic product (GDP) and its correlation to the paint industry. “You are correct that the GDP correlation has really gone for a toss, in the current year. I also feel that today, I am not very sure as to how the GDP numbers are coming,” he had said during the earnings call.

Asian Paints said in an exchange filing that many media articles had misrepresented the comments made by the CEO. The company said that Syngle’s comments were in response to a specific query on the correlation between the growth in the paint industry and the GDP.

“In that context, it was mentioned that the correlation of the paint industry growth with the GDP growth is varying, and we are unable to correlate both, unlike in the past. (Historically, the paint industry was seen growing at a multiple of 1.5 to 1.75 times the GDP growth; of late, this correlation was distorted). It was, hence, called out that there is a need for examining the GDP data to understand the reasons for this variance,” the firm clarified.

The comments were not, in any way, meant to question the sanctity of the GDP numbers as being projected in these posts and articles, it added.

During the fourth quarter of fiscal year 2024, Asian Paints reported a 1.8% year-on-year (YoY) growth in its net profit at ₹1,256.7 crore. Consolidated revenue for the quarter fell by 0.6% YoY at ₹8,701 crore. In FY24, Asian Paints’ net profit rose by 33% YoY to ₹5,460.2 crore.

Shares of the company have declined by nearly 18% since the beginning of the year. The stock has lost nearly 11% in the last one year.