Asian Paints Q1 FY25 results: Profit down 25% at Rs 1,170 crore; revenue slips 2%

Asian Paints Ltd on Wednesday recorded a 24.54 per cent dip in its first-quarter consolidated net profit for the ongoing financial year 2024-25 (FY25). During the June 2024 quarter, profit came at Rs 1,169.98 crore compared to Rs 1,550.37 crore in the year-ago period.

Revenue from operations fell 2.32 per cent to Rs 8,969.73 crore in Q1 FY25 from Rs 9,182.31 crore in the corresponding period last year. And, consolidated net sales decreased by 2.3 per cent to Rs 8,943.2 crore from Rs 9,153.8 crore, year-on-year (YoY).

"Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter. We delivered a good volume growth of 7 per cent in the decorative segment aided by some movement in rural markets, however value declined by 3 per cent impacted by the price decrease taken earlier in the year and shift in product mix," said Amit Syngle, Managing Director & CEO of Asian Paints.

Unanticipated material price inflation coupled with supply chain challenges impacted profitability of the Decorative business for the quarter, he added.

"In the near term, we expect demand conditions to improve at the back of improving rural sentiment and monsoons picking up gradually. We remain focused on driving growth through enhanced saliency of our brand, innovation and customer centricity," Syngle further mentioned.

On the international front, Asian Paints' sales decreased by 2.3 per cent to Rs 679.1 crore from Rs 695.1 crore on the back of economic uncertainty, forex crisis and liquidity issues in key markets of Asia and Egypt.

"In constant currency (cc) terms, sales increased by 1.8 per cent. PBT before exceptional items was Rs 6.5 crore as against Rs 26.5 crore in the corresponding period of previous year," it stated.

Meanwhile, Indian equity benchmarks were closed today due to Muharram. The domestic bourses will reopen on July 18, 2024 (Thursday). And, shares of Asian Paints were last seen trading 0.61 per cent higher at Rs 2,974.40.