The net profit and revenue of Asian Paints in Q1 FY25 declined more than anticipated. Net profit for April–June decreased by 25% year over year to Rs 1,170 crore.
Due to a difficult demand environment, Asian Paints said on July 17 that its consolidated Q1 FY25 net profit decreased by roughly 25% year over year to Rs 1,170 crore. The decline exceeded analyst projections. The biggest paint manufacturer in India’s operating income for the months of April through June was less than expected, down more than 2 percent year over year to Rs 8,970 crore.
According to a Moneycontrol survey of eight brokerages, revenue for the quarter will stay constant at Rs 9,236 crore, while net profit will decrease 7.6% year over year to Rs 1,432 crore.
Asian Paints’ Managing Director and CEO, Amit Syngle, stated in a statement that “demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter.”
The business does anticipate that demand will soon improve, though. “In the near term, we expect demand conditions to improve at the back of improving rural sentiment and monsoons picking up gradually,” Syngle said.
Before the share in associates’ profits, PBDIT (Profit before depreciation, interest, tax, other income, and extraordinary items) decreased by 20% to Rs 1,693.8 crore from Rs 2,121.3 crore. According to a statement from the company, PBDIT margin as a percentage of Net Sales decreased to 18.9 percent from 23.2 percent during the same period last year.
According to a statement, Asian Paints’ overseas business sales dropped by 2.3 percent to Rs 679.1 crore from Rs 695.1 crore due to currency fluctuations, economic unpredictability, and liquidity problems in important Asian and Egyptian markets. Bath fixtures and kitchen sales increased by 10% and 4.6%, respectively, in the home décor industry.
Ahead of the earnings, Asian Paints shares finished 0.4 percent higher on the NSE on July 16 at Rs 2,968 a share.
