Asian Paints Q1 Review - Favourable Base, Pent Up Demand Drive Topline: ICICI Direct
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ICICI Direct Report
Asian Paints Ltd.'s revenue and bottomline growth was ahead of our estimates but Ebitda margins came in lower than expected.
Volume growth of 106% YoY on a favourable base and pent up demand from metro and tier-I cities.
However, extended lockdown in southern states and higher Covid-19 cases in rural India had slowed growth.
Asian Paints' new products (in wood finishes, water proofing) are getting good demand tractions across regions. Robust growth in project and institutional sales.
Price hikes of ~3% to partially offset higher raw material prices. However, adverse mix and higher input costs dented gross margin.
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