Asian Paints reported a massive fall in its financial results during the July-September period in the 2024-25 fiscal year (FY25). The company said its net profit plunged 42.4 per cent to Rs 694.64 crore in the second quarter, in comparison to Rs 1,205.42 crore clocked during the same period a year earlier.
The quarterly revenue from sales declined 5.3 per cent to touch Rs 8,003.02 crore during the September quarter, as against Rs 8,451.93 crore reported in the corresponding quarter in the preceding 2023-24 fiscal year (FY24).
The consolidated PBDIT, excluding profit from associates, declined 27.8 per cent to Rs 1,239.5 crore in the quarter under review, as against Rs 1,716.2 crore clocked in the July-September quarter a year earlier.
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Elaborating on the results, Amit Syngle, Managing Director and CEO, said that weak consumer demand and bad weather conditions are major factors that are impacting the performance of the firm. “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,” the executive stated.
The CEO explained that operating margins felt the impact of price cuts last year, in addition to elevated input costs and higher selling costs. He noted that the recent increases in price should add positively to the margins in the latter half of the current fiscal year.
"Soft demand conditions, product mix and material price inflation affected margins in Q2. 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 shared.
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