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Motilal Oswal expects revenues to grow 22 percent on a YoY basis to Rs 4,650 crore in 1QFY19, with 16 percent volume growth in the domestic decorative business
The company witnessed a low double-digit growth (about 10 percent YoY) in the decorative segment in the quarter gone by compared to a six percent YoY volume growth in the last quarter.
Net Sales are expected to increase by 11.2 percent Y-o-Y (up 2 percent Q-o-Q) to Rs. 4,345.7 crore, according to ICICI Direct.
Net Sales are expected to increase by 12 percent Y-o-Y (up 3.9 percent Q-o-Q) to Rs. 4,426.7 crore, according to Prabhudas Lilladher.
Total income during the quarter under review stood at Rs 4,317.15 crore as against Rs 4,315.31 crore in the October-December period last fiscal.
Volume growth, which is expected to be around 11-12 percent for the quarter, is the most important to watch out. Also watch out for margins, commentary on demand and input costs.
Key thing to watch out for would be its domestic volume growth that is expected to be around 7-8 percent for the quarter, against 3 percent in Q1FY18 and 12 percent in Q2FY17.
Net Sales are expected to increase by 7.9 percent Y-o-Y (up 8 percent Q-o-Q) to Rs. 4566.7 crore, according to ICICI Securities.
Expectations were running low on account of pre-GST implementation adjustments in the quarter, and overall, the Nifty earnings have not resulted in any incremental negative surprise.
Key things to watch out for would be domestic volume growth that is expected to be 5-6 percent for the quarter, which would be upside risk for the stock.
The Mysuru Plant of 300,000 KL per annum should come on stream by October 2018, said KBS Anand, MD & CEO, Asian Paints.
Total income of the company may rise by 8.5 percent at Rs 4402 crore.
Net Sales are expected to decrease by 0.7 percent Q-o-Q (up 6.6 percent Y-o-Y) to Rs 4324 crore, according to ICICI Securities. Asian Paints to report net profit at 427.1 crore down 8.4% quarter-on-quarter.
According to Asian Paints CEO KBS Anand, Goods won't create a disruption which will last for more than a quarter. He added that GST will enable the organised sector to perform better depending upon tax rates on paints.
The challenge for most of these companies would be to sustain margins in one-two quarters of FY18, said Amnish Aggarwal, Senior Vp-Research, Prabhudas Lilladher.
Asian Paints, one of the largest paint companies in India, is expected to report weak set of earnings in Q3FY17. Profit is likely to increase 9 percent year-on-year to Rs 506 crore but adjusted profit may fall 4 percent in the quarter gone by.
According to Sanjiv Bhasin of IIFL there is a lot of pessimism around the third quarter earnings but he expects banks to be in a sweet spot.
Analysts believe that the company has reported a good set of earnings. Asian Paints has posted double-digit volume growth which is better than industry rate, said Abneesh Roy of Edelweiss Securities said. Even though the stock valuations are rich, he expects some upside due to GST implementation.
Volume growth, in Q2, is seen between 12-14 percent. Post Q1, the management was aiming at double-digit volume growth going forward.
Brokerage houses are mixed on the counter as overall they waited for monsoon and 7th pay commission to reflect in earnings, though the company maintained double-digit volume growth when every single consumer goods firm is grappling with slowdown issues.
KBS Anand, MD and CEO, Asian Paints, is confident that demand for paints will surge if gross domestic product (GDP) grows.
In Q1 volume growth is seen between 11-12 percent and anything above 10 percent will be considered positive. EBITDA margin expansion of 50 basis points will also be positive.
Net Sales are expected to up 11.8 percent Y-o-Y to Rs 4000.2 crore, according to Axis Securities
Sales are expected to increase by 0.4 percent Q-o-Q (up 10.0 percent Y-o-Y) to Rs 3987.4 crore, according to ICICI Securities.
Analysts polled by CNBC-TV18 expect revenue growth likely to remain volume-led. Volume growth is estimated at 8-13 percent. It had announced average 2 percent price cut across all segments in March. Revenue may see marginal impact of Jat agitation in Rohtak.