Share prices of most paint companies have lagged the S&P BSE Sensex in the last six months on worries over rising prices of key inputs and expectations of muted volumes, also partly reflecting in the October-December 2017 (Q3) performance. However, things are changing for the better.
Higher prices of titanium-dioxide, mainly due to a supply disruption in China, and crude-based derivatives — key raw materials used by paint companies — weighed on their gross profit margins in Q3.
Gross profit is calculated by deducting the cost of goods sold (raw material, inventory drawdown, goods purchased) from
Higher prices of titanium-dioxide, mainly due to a supply disruption in China, and crude-based derivatives — key raw materials used by paint companies — weighed on their gross profit margins in Q3.