Volume growth in rural areas, investment in capacity addition, distribution network expansion, new product launches and change in product mix, broad product portfolio spanning price points, and inflationary pressure on international business are some of the key things to watch out for in the result announcement.
Edelweiss Securities anticipates revenue, EBITDA and PAT to grow about 7.8 per cent, 8.3 per cent and 16.5 per cent, YoY respectively. "For the quarter, we expect Asian paints
to report nearly 10 per cent YoY volume growth on a base of 22 per cent (Q2FY20 saw 14 per cent volume growth on a base of 11 per cent). Price cuts in the paints has been nearly 0.6 per cent YoY, but we believe effective price cut translation taking into account lower realisation and discounts would be negative 2 per cent," the brokerage said in an earnings preview note.
Lower effective tax rate of 25.2 per cent announced by the government as against 34.1 per cent in Q3FY19 will lead to net profit growing ahead of EBITDA, it added.
At 10:11 am, the stock was trading 0.9 per cent lower at Rs 1,794 apiece on the BSE while the S&P BSE Sensex was trading 68 points or 0.16 per cent higher at 41,391 levels.