Asian Paints: Volume Up, Margins Rise in Q3

Asian Paints is projected to achieve a steady performance in the December quarter, with an anticipated 5% year-on-year revenue increase and an 8% rise in profit after tax (PAT). Volume growth is expected to be a key driver, with domestic decorative paint volumes forecast to grow in the high single digits to low double digits.

Margin expansion is anticipated as a significant positive, driven by lower prices of crude oil and titanium dioxide, alongside operating leverage. This is expected to boost gross and EBITDA margins. However, revenue growth is moderated by weak pricing and a subdued demand backdrop, with consumers reportedly downtrading. The B2B segment is expected to provide robust support, with double-digit growth fueled by government capital expenditure and infrastructure activities. This segment is poised to partially offset any weakness observed in specific retail segments, contributing to the company's overall financial health.