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Experts largely expect around 500 bps YoY contraction in gross margin as Brent crude prices increased to $78.52 a barrel from $75.13 a barrel during the quarter and gained more than 30 percent since the start of FY22, though the company has taken a price hike in first half of FY22.
Net Sales are expected to increase by 20.6 percent Y-o-Y (up 15.6 percent Q-o-Q) to Rs 6,454 crore, according to ICICI Direct.
Net Sales are expected to increase by 20 percent Y-o-Y (up 14.9 percent Q-o-Q) to Rs 6,420.3 crore, according to KRChoksey.
Net Sales are expected to increase by 42 percent Y-o-Y (up 36 percent Q-o-Q) to Rs 7,597.3 crore, according to Motilal Oswal.
Asian Paints is gradually expanding its product range from paints to other categories with an aim to beautify, preserve and transform all spaces and objects in homes
Revenue jumped 91.1 percent YoY to Rs 5,585.4 crore for the said quarter against Rs 2,922.7 crore in Q1FY21.
EBITDA margin will be up 280 bps YoY off a weak base aided by operating leverage and partly offset by higher advertising and promotion spends versus base quarter, Kotak Kotak Institutional Equities has said.
Net Sales are expected to increase by 57.8 percent Y-o-Y (down 30.7 percent Q-o-Q) to Rs. 4,611.9 crore, according to ICICI Direct.
The revenue mix improved considerably in Q4 owing to a higher contribution from the premium and the luxury segments, primarily aided by an upswing in demand from metros, Tier 1 and Tier 2 cities.
KR Choksey expects sales to increase by 43 percent on YoY basis led by pent-up demand noted during the quarter.
Net Sales are expected to increase by 27.8 percent Y-o-Y (down 12.7 percent Q-o-Q) to Rs 5,924.2 crore, according to Sharekhan.
Net Sales are expected to increase by 43.1 percent Y-o-Y (down 2.3 percent Q-o-Q) to Rs. 6,634.6 crore, according to KRChoksey.
Net Sales are expected to increase by 23.8 percent Y-o-Y (down 15.5 percent Q-o-Q) to Rs 5,739.1 crore, according to ICICI Direct.
Emkay Global sees 22 percent growth in domestic volumes aided by difference in festive timing.
Net Sales are expected to increase by 11.8 percent Y-o-Y (up 13.3 percent Q-o-Q) to Rs. 6,062.1 crore, according to ICICI Direct.
Net Sales are expected to increase by 0.1 percent Y-o-Y (up 1.4 percent Q-o-Q) to Rs. 5,420.3 crore, according to KR Choksey.
The gross margin of Asian Paints stands to benefit from structurally lower oil prices while the company’s pricing power offers downside protection should oil prices move higher
The stock is up 27 percent so far in FY21 and 18 percent in the July-September quarter.
Execution and margin challenges will continue to persist for Asian Paints throughout the current fiscal year.
Kotak Institutional Equities, which modelled 57 percent YoY decline in domestic decorative volumes, expects 98 percent fall in Q1 FY21 profit and 61 percent in revenue compared to year-ago quarter.
Both companies enjoy strong fundamentals, but we maintain caution on the sector due to elevated valuations and lingering uncertainty over changes in consumer behaviour.
The operating performance during the quarter is expected to be supported by decline in crude oil prices. Oil derivatives are the raw materials of paint companies.
The strategy has gone awry as the outbreak has disrupted the global economy and pushed the world to the verge of a global recession
Revenue from operations was at Rs 5,420.28, up 3 percent year-on-year.