FINBLAB RESEARCH: PAINT Sector Q4 (Jan-Mar ’18) Numbers And Analysis


Q4 FY ‘18 was a dull quarter as far as Indian Paint Sector is concern.

Almost all the companies (except one) have posted a weak set of numbers. Transition to GST and high raw material costs (crude oil) impacted the performance of business.

As far as numbers are concern, only Berger Paints able to registered growth both in Revenues and Profits for the quarter ended on 31st March 2018.

Market Leader Performance –

Market leader Asian Paints reported 11.51% increase in its standalone Net Profit at INR 491.57 Cr for the quarter ended March 2018. The company had posted a Net Profit of INR 440.83 Cr in the January-March quarter a year ago.

The Company reported a total income of INR 3834.51 Cr in the 4th quarter as against INR 3847.14 Cr in the corresponding period a year ago.

Star Performer in the Sector –

The star performer in the entire Paint sector for the quarter ended 31st March 2018 was Berger Paints.

The company Revenues grew by 1.87% to INR 1205.91 Cr while the Profits were stood at INR 110.37 Cr up by 50.82% as compared to same quarter last year.

 

Paint Sector Data –

Paint Sector

 

Sector Outlook –

Q4 FY18 was really a bad quarter for the Indian Paint sector on the back of higher crude oil prices (since it traded above 70 USD a barrel since last 3 months) as it is the essential commodities for the paint companies.

The Crude Oil is likely to trade between 70 USD to 80 USD a barrel at least for the next few quarters until the problem between US and Iran get solved. This one particular factor likely to creates more pain for the entire paint sector.

Only one News that comes in favour for the Paint sector is the normal rainfall predicted by the IMD just a few months back and demand will likely to open once the season gets over.

Finblab Pick of the Sector – Asian Paints and Akzo Nobel

 

Also Read – 

1) Finblab’s Valuepick Stock for the month of May – GMM PFAUDLER LIMITED 

 


Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.


 

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About me

Vishal Dalwadi

Vishal Dalwadi

Vishal is an MBA (Finance) post-graduate. He is the founder and owner of "FinBlab". His blog aims at providing information and research on Stock market and sectors including Mutual funds, IPOs, Insurance and more.

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