Asian Paints Q3 results today; here’s what to track

Asian Paints is likely to report a double-digit rise in net sales and profit for the quarter ended December 2018 today.

Emkay Global Financial Services sees a year-on-year growth of 14 per cent and 11 per cent in net sales and profit of Asian Paints.

The brokerage house expects strong traction in domestic decorative paints to drive 11 per cent volume growth. It also estimated realisation growth of 3.5 per cent factoring in the recent price hike.

“Margins would recover QoQ on price hikes, but still will be lower YoY as a result of raw material price inflation,” the brokerage said in a report.

ICICI Securities expects 10.80 per cent, 17 per cent and 12.20 per cent YoY jump in consolidated Ebitda, sales and profit after tax of the company.

It further said high double-digit decorative paints volume growth would drive top line of Asian Paints whereas gross margin may contract by 133 basis points YoY due to elevated raw material costs.

The cost was 0.33 per cent down at Rs 1,416 at around 9.45 am while the BSE Sensex dropped 136 points, or 0.37 per cent, to 36,442.

“Adjusted PAT is expected to increase by 12.2 per cent YoY driven by healthy sales growth, partially offset by margin contraction,” ICICI Securities said.