Q4FY22 Preview: Asian Paints: Revenue seen at Rs81,565 million, adjusted PAT at Rs10,853 million

6 May 2022 , 02:28 PM

Result date: 10^th May, 2022
Recommendation: Reduce
Target price: Rs3,100

Asian Paints could post a good performance in the March 2022 quarter, with estimated growth of 22.6% in consolidated revenue. This growth will be largely led by price hikes and market share gains, even as volumes could grow in mid-single digit.

While soaring input cost prices (particularly Tio2) could hit its gross margins, though cost rationalization efforts could restrict fall in EBITDA margin to 40 basis points (y-o-y) at 19.4%.

Adjusted Profit After Tax (PAT) could grow 27.4% over the year-ago quarter.

Important management insights to watch out for:
·         Demand outlook in Metros, Tier 2 and Tier 3 towns
·         Update on trends in input cost movement and pricing actions

Rs Million	March 2022 estimates	YoY change
Revenue	81,565	22.6%
EBITDA	15,852	20.3%
Adjusted Profit After Tax	10,853	27.4%

Source: IIFL Research