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Asian Paints, a leading paint and decor company in India, reported a significant 43.71% decline in consolidated net profit for the September quarter, reaching Rs 693.66 crore. This substantial drop was attributed to a combination of factors, including weak demand conditions, material price inflation, and a decline in the decorative and coatings business within the domestic market. In the corresponding period last year, the company had recorded a net profit of Rs 1,232.39 crore.
The company's revenue from operations also experienced a decline, falling by 5.3% to Rs 8,027.54 crore in the September quarter compared to Rs 8,478.57 crore in the same period the previous year. Asian Paints attributed the margin pressure to the soft-demand environment, product mix variations, and the impact of material price inflation. Total expenses for the quarter increased by 1% to Rs 7,093.03 crore, while total income, including revenue from other sources, was down 5.12% at Rs 8,201.09 crore.
Amit Syngle, Managing Director & CEO of Asian Paints, acknowledged the subdued demand environment that characterized the quarter. He noted a marginal decline in domestic decorative coatings segment volumes, leading to an overall 5.5% reduction in domestic coatings revenue. This was attributed to muted consumer sentiments and prolonged rain and flood events in certain parts of the country. Despite implementing price increases during the quarter, Syngle indicated that their full impact would not be realized until the second half of the year. He expressed optimism that margins would recover in subsequent quarters due to anticipated softening in material prices and the effects of the recent price increases.
In the international market, Asian Paints' sales experienced a 0.7% decrease to Rs 769.5 crore, primarily driven by macroeconomic challenges and currency devaluation in Ethiopia, Egypt, and Bangladesh. However, in constant currency terms, sales registered an 8.7% increase. The company reported a loss of Rs 21.5 crore in PBT for the second quarter of the current fiscal year, in contrast to a profit of Rs 40.4 crore in the corresponding period of the previous year.
Beyond the financial results, Asian Paints announced that its board had approved an interim dividend of Rs 4.25 per equity share, with a face value of Re 1 each for the financial year ending March 31, 2025. The company remains a prominent player in the global coatings industry, ranking among the top 8 companies with a consolidated turnover of Rs 35,382 crore. It maintains operations in 15 countries worldwide, encompassing 27 paint manufacturing facilities and serving consumers in over 60 countries.