Asian Paints Q3FY19E Result Expectation

Management commentary on volume growth and demand scenario in both rural and urban markets.

Jan 22, 2019 08:01 IST India Infoline News Service

Asian Paints Consensus expectations for Q3FY19E
  • Revenue - Rs4,855.5cr, up 14% yoy, driven by high-double digit growth in decorative paints segment coupled with two rounds of price hikes (2.3% in October and 1.5% in December 2018).
  • EBITDA – Rs937.5cr, up 5.2% yoy.
  • EBITDA margin – 19.3%, contraction of 161bps yoy, due to raw material inflation (Titanium Oxide price was up ~14% yoy in Q3FY19. 
  • PAT -  Rs590.1cr, up 6.4% yoy.
Highlights for Q2FY19
  • Revenue - Rs4,639.1cr, up 8.8% yoy, primarily led by domestic decorative paints segment’s double-digit volume growth; international operations was under pressure.
  • EBITDA – Rs784.2cr, down 2.1% yoy, on account of higher input costs.
  • EBITDA margin – 16.9%, contraction of 188bps yoy.
  • PAT – Rs506cr, up 29.6% yoy.
Remarks:
  • Management commentary on volume growth and demand scenario in both rural and urban markets.
  • Outlook for raw material inflation (amid softening crude oil price) and company’s guidance on the price hikes would be key thing to watch out.

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