Asian Paints Q4 results preview: Cons. PAT to likely grow 3% YoY; EBITDA margins to remain steady

Mumbai-headquartered Asian Paints is all set to report its Q4FY24 earnings on May 9 (Thursday). Zee Business Research Desk expects the paints manufacturer to report a weak quarter on the back of increasing competition within the paints industry.

The consolidated revenue for the reporting quarter is expected to come in at Rs 8,973 crore, up 2 per cent, in comparison to  Rs 8,787 crore reported in the corresponding period a year ago. Analysts maintain that the price cut taken during the quarter will likely weigh on the company’s revenue growth. Furthermore, despite the price cut, the company is seen to post volume growth of just 5-6 per cent during the reporting quarter.

EBITDA or Earnings Before Interest, Taxes, Depreciation and Amortisation is estimated at Rs 1,895 crore, inching up over 2 per cent on-year from Rs 1,865 crore in the same quarter in the year-ago period.

EBITDA margin growth, however, is seen to remain steady on-year at 21 per cent due to higher ad-spends, even though the company’s gross margin is expected to log growth.

Profit after tax or PAT for the March quarter is projected to come in at Rs 1,299 crore, up 3 per cent YoY from Rs 1,258 crore.

Key monitorables 

Investors will keep on radar the management’s commentary on volume mix, demand outlook, gross margin trends and competition intensity.

Asian Paints Q3FY24 results

In the December ended quarter, the company’s consolidated net profit witnessed an impressive 35 per cent on-year increase to Rs 1448 crore. Consolidated revenue from operations grew by 5.4% on-year  to Rs 9,103 crore. 

Asian Paints share price performance

Ahead of its results tomorrow, the stock of Asian Paints ended over 2 per cent lower at Rs 2844.25 apiece on the BSE. Over a 1-year period, shares of Asian Paints have underperformed with a negative return of nearly 6 per cent.