Asian Paints Q3FY25 results: Net profit falls 23.3% Rs 1,110 crore

Asian Paints saw its net profit decline by 23.3 per cent in the quarter ended December. The country’s largest paint maker reported a profit of Rs 1,110 crore, while its decorative paints business (India) volumes rose 1.6 per cent.

 

During the quarter, the company’s net sales stood at Rs 8,522 crore, down 6.1 per cent due to muted demand conditions coupled with downtrading. A weak festive season also impacted revenue, the company said in its release.

 

The industrial business registered a growth of 3.8 per cent on the back of general industrial and refinish segments, while its home decor business benefited from progress on its network expansion.

 

Revenues in the international business increased by 5 per cent in rupee terms and 17.1 per cent on a constant currency basis, led by growth in the Middle East and recovering macroeconomic conditions in key Asian markets, it said in its release.

 

Its PBIDT (profit before interest, depreciation and tax) stood at Rs 1,830 crore, down 18.4 per cent.

 

“The paint industry continued to be impacted by subdued demand conditions during the quarter, especially in urban centres. We registered a 6.6 per cent decline in the overall coatings business in India, including industrial,” Amit Syngle, managing director and chief executive officer of Asian Paints, said in the release.

 

He added, “The domestic decorative business delivered 1.6 per cent volume growth, while standalone revenues declined by 7.5 per cent for the quarter, impacted by weak festive season demand. While we saw sequential improvement in operating margins, the adverse mix coupled with increased sales and distribution expenses affected operating margins on a year-on-year basis.”

 

In its near-term outlook, Syngle said the company remains cautiously optimistic about a recovery in demand conditions while continuing to invest in its brand and focus on innovation and customer centricity.