Asian Paints will be reporting its third-quarter earnings on Tuesday and analysts expect a good set of numbers this time around.
- Good results are expected because there was a festive shift in Q3 and price hikes that were taken in October and December. So that would aid the revenue growth as well.
- December price hikes would reflect in the next quarter. Crude was off highs and currency was off low. So margin expansion quarter on quarter and finally, the company’s Mysuru plant, which is about 20-25 percent existing capacity has come onstream from September 20th. So that too would aid volumes.
- All these things put together, revenue growth of about 16 percent is what the street is factoring in closer to that Rs 4,900 crore mark, EBITDA likely to grow at about 10.5 percent, it is slower than the revenue but sequentially margins are likely to improve. So EBITDA growth of 10.5 percent would mean margins of around 20 percent, which is 100 basis points lower year-on-year (YoY) but higher quarter-on-quarter (QoQ).
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