Asian Paints Q2 preview: Profit may fall on weak domestic business; shares down over 2%

Asian Paints- the country's starring paints shaper is slated to uncover its Q2 net connected Saturday (November 9). Zee Business probe estimates the institution to station muted results amid a slowdown successful request during the reappraisal period.

Consolidate nett net oregon Profit aft taxation (PAT) astatine the paints large is expected to diminution 13 per cent on-year to Rs 1,051 crore versus Rs 1,205 crore during the aforesaid 4th of the erstwhile year.

Revenue astatine the institution is besides seen dropping marginally arsenic per estimates by a tad 0.3 per cent to Rs 8,455 crore during the Q2 period, successful examination to Rs 8,479 crore reported during the aforesaid play past year.

At the operational level, EBITDA oregon net earlier interest, taxes and amortisation volition besides autumn year-on-year (YoY) by arsenic overmuch arsenic 12 per cent to Rs 1,514 crore. The aforesaid stood astatine Rs 1,716 crore successful the aforesaid play past year. Similarly, borderline volition spot a resistance and inch little by 2.3 per cent oregon 230 ground points.

Analysts expect 6-7 per cent during the 4th contempt the festive temper which spurs request successful the aftermath of customer's inclination to renovate their homes.

The company's home concern is besides estimated to log 1 per cent degrowth during the September 4th of the existent fiscal year.

Asian Paints Q2 margins to stay weak

The company's borderline during the reappraisal 4th whitethorn instrumentality a deed connected the backmost of anemic premix arsenic good arsenic earthy worldly inflation. Nevertheless, an summation successful merchandise prices volition connection immoderate respite connected the front.

Key monitorables

The company's absorption commentary connected request arsenic good arsenic earthy worldly prices volition stay crucial.