Asian Paints Q1 PAT seen up 12% at Rs 305 crore

MUMBAI: Asian Paints will be announcing its first quarter results tomorrow. According to ET Now poll, the company's net profit is expected to be Rs 305 crore, up 12 percent, compared to a net profit of Rs 271.50 crore, year-on-year (YoY).

Sales for June 2012 quarter are likely to be Rs 2,706 crore, up 20 percent YoY from Rs 2,260 crore.

Factors to watch out for:-

1. Growth to be driven by mix of volume and pricing growth.

2. The company had initiated price hike of 2 percent in April 2012 and 3.2 percent on May 01, 2012.

3. Expect margins to contract due to higher raw material costs and rupee weakness.

4. Domestic demand for decorative paints to remain strong.

5. Industrial paints performance to remain sluggish.

6. Middle East business remains under pressure.