Asian Paints share price edged higher in the afternoon session on January 19 with the Mumbai-based paintmaker set to announce its December quarter earnings later in the day.
The paint company is expected to report single-digit year-on-year growth in net profit in the third quarter of FY23 on the back of muted volume offtake and weak demand, a Moneycontrol poll has shown.
Net profit is expected to grow 8.7 percent to Rs 1,104 crore from a year earlier and sequentially by 40 percent, according to the average of estimates of brokerages polled by Moneycontrol. Revenue is expected to rise 10.9 percent YoY to Rs 9,456 crore.
The numbers are set to be hit due to muted volume growth, analysts said. One reason is the high base effect.
Catch all the market action on our live blog
Volume growth will also be impacted due to extended rainfall in October, which affected festive demand. Moreover, the pent-up demand that followed COVID-19 lockdowns has eased and inflation affected discretionary spending. All this will impact volumes, analysts said.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) margin for the quarter has been pegged at 17.1 percent, higher by 250 basis points sequentially.
At 12.28 om, Asian Paints was quoting at Rs 2,965.00, up Rs 19.15, or 0.65 percent, on BSE. It touched an intraday high of Rs 2,972.10 and an intraday low of Rs 2,925.45.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
