New Delhi, Nov 9 Asian Paints Ltd on Saturday posted a huge 42.4 per cent drop in net profit at Rs 694.6 crore in the July-September period (Q2 FY25), from Rs 1,205.4 crore in the year-ago period.
Revenue also decreased 5.3 per cent to Rs 8,003.02 crore, compared to Rs 8,451.93 crore in the same period last year.
For the first six months of the current fiscal (H1 FY25), net profit decreased by 32.3 per cent to Rs 1,864.6 crore from Rs 2,755.8 crore. Consolidated net sales decreased by 3.7 per cent to Rs 16,946.3 crore from Rs 17,605.7 crore, the company said in its regulatory filing.
The paint industry faced a subdued demand environment during the quarter.
"Domestic decorative coatings segment volumes declined marginally while overall domestic coatings revenue declined by 5.5 per cent for the quarter impacted by muted consumer sentiments and extended rains and floods in some parts of the country," Asian Paints Managing Director and CEO Amit Syngle said.
"While we took price increases during the quarter, the full impact of the same should flow through only in the second half of the year," he added.
The industrial business did relatively better with single-digit value growth supported by growth in the general industrial, protective coatings, and refinish segments. The company continued to register growth in home decor categories. The international business portfolio registered a marginal decline in revenues for the quarter, despite unfavourable market conditions in certain key markets like Ethiopia and Bangladesh, according to the company CEO.
Asian Paints' consolidated PBDIT, excluding profit from associates, decreased 27.8 per cent to Rs 1,239.5 crore, down from Rs 1,716.2 crore. The PBDIT margin as a percentage of net sales declined to 15.5 per cent from 20.3 per cent a year ago.
"We expect margins to recover in the coming quarters on the back of anticipated softening in material prices coupled with price increases implemented in the last few months," Syngle said.
The stock of Asian Paints closed at Rs 2,769.25 apiece on Friday, down 2.61 per cent.
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