Asian Paints Q2 numbers weak, demand should pick up from Q3: Preeyam Tolia

economictimes.indiatimes.com:

Preeyam Tolia, Equity Research Analyst- FMCG & Retail, Axis Securities, says “we believe that the Q3 onwards, the demand should pick up for the paint segment. Anyway, it was expected that Q2 would be more sluggish but this is more than what we anticipated.”
Asian Paints numbers seems to be a miss, especially volume growth was below what we were expecting. It has come in at 6% for the decorative business. So first cut for Asian Paints, how are the numbers looking to you?
Definitely the numbers are weak in terms of top line and the bottom line as well because it is below our estimates. We anticipated a revenue growth of 3% led by 5% volume growth. However, the volume growth is better than our estimate, which the company reported of 6%. We believe that the delay in the festive season, which shifted towards the second half of the year, has impacted the overall demand. So yes, the numbers are weak.

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Anything in terms of specific segment-wise also that you could talk to us because surely the industrial segment managed to see good growth. Is that something that we could be sustaining or we could get in terms of that segment, specifically?
Yes, the company has been reporting a good set of numbers on the industrial side since the last few quarters. However, the core business, which is a decorative business, has been a little sluggish since the last two quarters. So yes, definitely, volume growth is coming up. But we will see how the second half goes for the company and the