 "Paint sector, Asian Paint")
Lower input costs would help soften the impact of demand slowdown for paint companies. Brokerages had cut the net profit estimates of the listed paint companies after the March 2019 quarter (Q4) results due to the miss on profitability and volume growth.
However, current prices of Brent are down 10 per cent from March 2019 level (22 per cent down from June 2018) and that of titanium dioxide or TiO2 have fallen 4 per cent (13 per cent down from June 2018). And, crude oil prices are unlikely to rebound significantly in the near term, which should improve their bottom lines.
