Asian Paints consolidated net profit decreased by 24.5% in Q1 FY2025 to Rs 1,170 crore from Rs 1,550.4 crore in the same period last year. The net sales also dipped by 2.3% to Rs 8,943 crore from Rs 9,153 crore. In a stock exchange filing, the paint and coating manufacturing company said that demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter.
The paint giant’s standalone profits also fell nearly 21% to Rs 1,192 crore in the first quarter of FY2025 from Rs 1,508 crore in the corresponding quarter of the previous financial year.
The company’s Profit (before depreciation, interest, tax, other income, and exceptional items) decreased by 20.2% to Rs 1,693.8 crore between April-June 2024 as compared to Rs 2,212.3 crore in the same period in 2023.
Asian Paints also witnessed a dip in its consolidated net sales by 2.3% to Rs 8,943 crore in Q1 FY 2025 from Rs 9,154 crore in Q1 FY 2024.
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The sales of its international business dipped by 2.4% to Rs 679 crore in the Q1 of the current fiscal year as compared to Rs 695 crore in the same period in FY2024 due to economic uncertainty, forex crisis and liquidity issues in Asia and Egypt markets.
“Geographies like Ethiopia and Sri Lanka grew well in Q1 on the back of a gradual recovery in these economies, however key macroeconomic issues persisted in markets like Nepal, Bangladesh, and Egypt impacting the overall performance for the International business,” Asian Paints said.
However, the company’s home decor business saw a marginal uptick in Q1 FY2025. The sales of Asian Paints’ ‘bath fitting business’ up by 10.3% to Rs 93.4 crore in Q1 FY2025 as against Rs 84.7 crore in Q1 FY 2024. The sales of its kitchen business increased by Rs 4.6% to Rs 100.4 crore in Q1 FY2025 from Rs 96 crore in Q1 FY2024, and sales of White Teak saw a gain of 14.3% to Rs 29.7 crore in the first quarter of current fiscal year from Rs 26 crore in Q1 FY2024.
The bath and fitting business PBIT (Profit before depreciation, interest, tax, other income, and exceptional items) declined to rs 1.4 crore in Q1 this fiscal year.
Asian Paints said that its industrial business did relatively better and grew by 5.8% by value backed by good growth in the Auto OEM and powder coatings segment.
The stock of Asian Paints was down by 0.92% to Rs 2,947 on Thursday at 11 am.
In the near term, Asian Paints expects that demand conditions will be improved on the back of improving rural sentiment and monsoon season.