On Thursday, shares of Asian Paints fell 2.3 percent after the company reported a dull performance in the March quarter. Consolidated net profit at Rs 473 crore significantly fell 1.6 percent year-on-year. The consensus estimate of Rs 5223 crore, the revenue of Rs 5018 crore was disappointing, as well.
Senior head of research said in a note, “While the company has taken price hikes amounting to 6% during the fiscal year 2019, the price growth of around 2% for the quarter was disappointing. The product mix is more likely to be skewed towards low-end products such as Putty, which would have led to lower price growth. This has resulted in lower than expected revenue growth for the quarter.”
Impacted by high raw material costs and advertisement expenditure, operating margin seems to be lessened, as well. Adding to which, the challenging business conditions and environments affected the operations in other markets, especially in Egypt, Ethiopia, Sri Lanka, and Bangladesh.
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