As per company’s consolidated results, its net profit after minority interest decreased to Rs 694.6 crore in the second quarter of current fiscal (Q2FY25) from Rs 1,205.4 crore
Due to subdued demand environment impacted by muted consumer sentiment, Asian Paints witnessed a 42.4 per cent year-on-year (YoY) decline in its net profit in the second quarter of the current financial year (Q2FY25). As per company’s consolidated results, its net profit after minority interest decreased to Rs 694.6 crore in Q2FY25 from Rs 1,205.4 crore in Q2FY24.
The company’s consolidated net sales decreased from Rs 8,451.9 crore in Q2FY24 to Rs 8,003 crore in Q2FY25. It reported a 27.8 per cent drop in its consolidated PBDIT (profit before depreciation, interest, tax, other income and exceptional items) as it decreased to Rs 1,239.5 crore from Rs 1,716.2 crore last year. The PBDIT margin dropped from 20.3 per cent in Q2FY24 to 15.5 per cent in Q2FY25.
“Operating margins were impacted by the price reductions taken last year, higher material prices and increased sales expenses. While we took price increases during the quarter, full impact of the same should flow through only in the second half of the year,” stated Amit Syngle, Managing Director and Chief Executive Officer (CEO) of Asian Paints.
As far as the consolidated results for the first half of the current financial year (H1FY25), net profit after minority interest 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.
Syngle remains hopeful about the margin recovery going ahead. He added, “On the margin front, 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.”
In H1FY25, the PBDIT of the company decreased to Rs 2,933.3 crore from Rs 3,837.5 crore, marking a 23.6 per cent decline on a YoY basis. PBDIT Margin as percentage to net sales at 17.3 per cent from 21.8 per cent in the previous year.
