The company posted a net profit of Rs 1,110.48 crore, attributable to the shareholders of the company, in the third quarter of the current fiscal (Q3FY25)
Impacted by subdued demand conditions, Asian Paints, a paint and decor company has reported a 23.3 per cent dip in its consolidated net profit in the third quarter of the current financial year. The company posted a net profit of Rs 1,110.48 crore, attributable to the owners of the company, in Q3FY25. The same profit was Rs 1,447.72 crore in Q3FY24.
The unaudited consolidated financial results of the company revealed a 6.1 per cent decrease in net sales which went down from Rs 9,074.9 crore in Q3FY24 to Rs 8,521.5 crore in Q3FY25. The revenue from operations also declined to Rs 8,549.44 crore in Q3FY25, compared to Rs 9,103.09 crore in Q3FY24.
Decorative business (India) registered volume growth of 1.6 per cent with revenue decline of 7.8 per cent. The muted demand conditions coupled with downtrading, and a weak festive season impacted revenue. Industrial Business grew 3.8 per cent on the back of general industrial and refinish segments.
“The paint industry continued to be impacted by subdued demand conditions during the quarter, especially in the urban centers. We registered a 6.6 per cent decline in overall coatings business in India, including industrial. The domestic decorative business delivered a 1.6 per cent volume growth while the standalone revenues declined by 7.5 per cent for the quarter impacted by the weak festive season demand,” stated Amit Syngle, Managing Director and Chief Executive Officer (CEO) of Asian Paints.
As far as the international business is concerned, the company stated that sales increased in Q3FY25 by five per cent to Rs 818 crore from Rs 779.1 crore on the back of improved macro-economic conditions in Sri Lanka, Bangladesh and Nepal offset by currency devaluation in Ethiopia and Egypt.
“Asian Paints experienced a muted demand on the back of weak festive season, especially from the urban areas. Although the operating margins improved on a sequential basis but on a yearly basis, the margins remained impacted due to increased distribution expenses. The company’s Home Décor segment continues to expand its network, while its Industrial segment performed better,” stated Akriti Mehrotra, Research Analyst, StoxBox.
Sales in the bath fittings business increased in Q3FY25 by 2.6 per cent to Rs 87.6 crore from Rs 85.4 crore. In the kitchen business, the sales rose by 2.7 per cent to Rs 102.7 crore from Rs 100.1 crore. Driven by weak seasonal demand sales at White Teak in Q3FY25 decreased by 22.8 per cent to Rs 26 crore while sales at Weatherseal decreased by 14.1 per cent to Rs 11.8 crore.
