INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Asian Paints is likely to report a double-digit growth in bottom line for the quarter to June on Tuesday
Kotak Institutional Equities believes that the company may post 26.20 per cent year-on-year (YoY) rise in net profit while net sales may
increase 16.30 per cent annually.
The stock was up 0.37 per cent at Rs 1,439 ahead of its quarterly results.
Kotak also estimated a 14 per
cent volume growth in the domestic decorative business, aided partly by a low base (2 per cent) of the pre-GST June 2017 quarter
EBITDA margin may expand by 134 basis points for the quarter in question
We estimate flattish gross margins despite the recent raw material inflation as we factor in the mitigating effects of price increases and
growth of 15 per cent and 14 per cent YoY, respectively
PAT is seen to jump 12.30 per cent.
The brokerage added that Asian Paints is likely to clock record sales growth on around 12 per cent
The company has taken a price hike at different intervals (3 per cent YoY) mainly to offset higher raw material prices
As a result, the EBITDA margin is likely to increase 66 bps YoY to 18 per cent
