Revenues are expected to grow by 11 percent YoY
Asian Paints is scheduled to report its September quarter earnings on October 22. The company may report a marginal increase in net profit and revenues, according to Phillip Capital.
The research firm expects the net profit of Asian Paints to rise by 5 percent year-on-year to Rs 533.8 crore for the September quarter. But, sequentially it could see a rise of 23 percent in Q2 net profit, said the report.
Revenues are expected to grow by 11 percent YoY.
The firm expects volume growth to be impacted due to shifting of festival season to Q3 and GST‐related disruption on cuts in rate to 18 percent from 28 percent.
EBITDA may decline 90bps YoY due to subdued volume growth, start ‐up costs relating to commencement of its Mysuru plant, and commodity‐related inflation.
Gross margin may remain under pressure due to spiralling Titanium Dioxide (mainly used as a white pigment), crude oil prices, rupee depreciation and company deferring price hikes to Q3 owing to strict vigilance from anti‐profiteering activities, the report further said.
