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Paint companies better-placed to tackle higher crude prices, say experts

Robust rural demand, pricing power to mitigate the risk of increase in input costs

Overall, while the initial signs are positive, FY21 is unlikely to see higher revenues and profits as compared to the last year

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Importantly, rural sales account for 60 per cent of revenue of paint companies

3 min read Last Updated : Dec 01 2020 | 1:40 AM IST

Shares of paint companies, after correcting as much as 5 per cent from their all-time highs on worries of rising crude oil prices, are again trading firm. Analysts say, while higher oil prices would have an impact on operating profits, companies are better-placed to handle it.

Last week, oil prices hit their highest level since March on hopes of a faster global economic recovery following positive news flow on coronavirus vaccine. International oil prices are up 25 per cent in a month. Crude oil and its derivatives account for about half of paint companies' cost. Oil prices and operating profit

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