Asian Paints earlier today said that the board of directors of the company will meet on Tuesday, 24th July, 2018, to consider and approve the audited standalone financial results of the Company for the quarter ended 30th June, 2018 (Q1FY19).
“Asian Paints likely to record sales growth of around 15% year on year (YoY) to Rs 43.88 billion in Q1FY19 mainly due to around 12% YoY volume growth. Higher volume growth would be largely on account of lower base (GST related de-stocking of inventory),”
ICICI Securities said in Q1FY19 results preview.
“The company has taken a price hike at different intervals (around 3% YoY) mainly to offset higher raw material prices. As a result, the EBITDA margin is likely to increase 66 bps YoY to 18%. Higher sales growth and expansion in EBITDA margin may result in PAT growth of 12% YoY to Rs 4.95 billion,” the brokerage firm said.
Kotak Institutional Equities expects Asian Paints to report around 14% volume growth in the domestic decoratives business aided partly by the low base (2%) of the pre-GST June 2017 quarter.
“EBITDA margin expansion reflects operating leverage; we estimate flattish gross margins despite the recent RM inflation as we factor in the mitigating effects of price increases and strategic sourcing,” the brokerage firm said in results preview.