Asian Paints to report double-digit growth in profit, sales in March quarter

NEW DELHI: Asian Paints is likely to post double-digit topline as well as bottomline growth for the quarter ended March 2019 on Thursday.

Edelweiss Securities projected that the company may report 23.30 per cent year-on-year (YoY) rise in net profit at Rs 611.50 crore in Q4FY19 on 17.50 per cent and 11.20 per cent YoY jump in EBITDA and revenues.

The brokerage house added that on the cost of goods sold front, prices of Titanium Dioxide (TiO2) and other monomers have declined from the peak. This coupled with the price hike and stabilising rupee should aid sequential gross margin expansion. Cost rationalisation will further boost margin at the EBITDA level on YoY as well as QoQ basis. A higher tax rate (37 per cent) in the base quarter should see PAT grow ahead of EBITDA YoY.


Emkay Global Financial Services sees PAT and net sales growth of 16 per cent and 15 per cent YoY. It also estimated 14 per cent YoY jump in EBITDA with 12 per cent volume growth.

“Strong domestic decorative paints demand to drive 12 per cent volume growth. Our estimates of realisation growth of 3.5 per cent factoring in the recent price hikes. Margins to improve sequentially but will be lower YoY due to input inflation and higher overheads on account of the commissioning of new plants,” Emkay said in a report.

It sees 27 basis points and 124 basis points dip in EBITDA margin at 18.50 per cent for the quarter ended March 2019.