Asian Paints Ltd expects strong double digit volume growth year-on-year in its December quarter results today i.e. January 20. Along with the increase in prices made during this period, we can see an increase of about 25 per cent in earnings. Experts feel that the income of India’s largest decorative paint maker can increase by 20 percent from the previous quarter.
The brokerage expects the Mumbai-based paint company to post a consolidated profit of Rs 1,000-1,215 crore with a growth of 70-100 per cent. Profits are expected to decline by 2-20 per cent on a year-on-year basis.
The company’s consolidated income stood at Rs 6,788 crore and consolidated profit of Rs 1,238 crore in the same quarter a year ago.
Phillip Capital Estimates
Brokerage firm Phillip Capital expects earnings to hit Rs 9,334 crore with aggressive growth in earnings of around 35 per cent year-on-year on the back of strong volume growth and price hike.
The increase in crude oil prices coupled with higher but stable titanium dioxide prices will continue to impact input costs, which are expected to increase by 45 per cent year on year, the brokerage said.
Phillip Capital thinks that the company’s profit can increase by 18 percent on an annual basis to Rs 1459 crore.
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JM Financial Estimates
However, forecasts of other brokerages are a bit conservative. JM Financial expects a 12 per cent increase in volumes and a 15 per cent improvement in average realization.
The brokerage expects earnings to grow around 22 per cent to Rs 8,311 crore though it is around 17 per cent on a sequential basis.
JM Financial estimates that the company can make a profit of Rs 1214 crore in this quarter, which may see a decline of 2 percent on a yearly basis, while the company’s profit may double from the previous quarter.
Estimation of Kotak Institutional Equities
Kotak Institutional Equities is forecasting a revenue growth of 22 per cent year-on-year.
Kotak analysts said in a report, “We expect domestic decorative paints volumes to grow by 17 per cent and 25 per cent year-on-year, respectively, on account of increasing market share by unorganized/organised companies, increase in prices and strong growth in waterproofing and wood finishes. Is.”
Shares of Asian Paints had closed at Rs 3,280, down by Rs 93 or 2.8 per cent on the National Stock Exchange (NSE) on January 19.
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