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Last Updated : Jan 23, 2017 08:22 AM IST | Source: CNBC-TV18

Asian Paints Q3 profit seen up 9% to Rs 506cr, margin may shrink

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.


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.


The company had an exceptional loss of Rs 52.5 crore in Q3FY16.


Revenue during the quarter may decline 2 percent year-on-year to Rs 4,081 crore from Rs 4,160 crore, according to average of estimates of analysts polled by CNBC-TV18.

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Operating profit is seen falling 5.5 percent to Rs 757 crore and margin may contract by 70 basis points to 18.5 percent in the quarter gone by.


Analysts expect domestic volume growth in range of negative 9 percent to positive 7 percent.


Crude oil prices increased 20 percent during the quarter YoY, hence gross margin is expected to decline 100-120 basis points but lower advertising expenses & cost efficiencies may limit margin decline.


Factors to watch out for would be demonetisation impact and impact of crude oil prices hike on margin.



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First Published on Jan 20, 2017 04:51 pm
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