Asian Paints Q3 results: Profit drops 23% to ₹1,110 crore, revenue down 6%

Asian Paints Q3 FY25 results: Sequentially, profit rose 60% from ₹694.64 crore.

Asian Paints on Tuesday reported a 23.3 per cent drop in consolidated net profit to ₹1,110.48 crore for the third quarter (Q3) of the financial year 2024-25 (FY25), from ₹1,447.72 crore reported during the same period last year, impacted by muted festive season demand. Sequentially, however, profit rose nearly 60 per cent from ₹694.64 crore.  ALSO READ: MobiKwik Q3 result: FY25 loss widens to ₹55.2 cr on higher lending costs

 

Consolidated revenue from operations also dropped marginally by 6 per cent to ₹8,549.44 crore year-on-year from ₹9,103.09 crore. Sequentially, revenue went up by 6.5 per cent from ₹8,027.54 crore. 

Muted demand impacts growth

Asian Paints' Managing Director and CEO, Amit Syngle, highlighted subdued demand, particularly in urban centres, as a key challenge.

 

 

"The paint industry continued to be impacted by subdued demand conditions during the quarter, especially in urban centers. We registered a 6.6 per cent decline in the overall coatings business in India, including Industrial. The domestic decorative business delivered 1.6 per cent volume growth, but standalone revenues fell 7.5 per cent, impacted by weak festive demand," Syngle said.

 

While the company saw sequential margin improvement, higher sales and distribution expenses, along with an adverse product mix, affected Y-o-Y operating margins.

 

Industrial and international performance

Despite challenges in the decorative segment, the industrial coatings business grew 3.8 per cent, supported by growth in the General Industrial and Refinish segments.

 

The home decor business continued to expand, with network growth remaining a priority.

 

On the international front, revenue increased by 5 per cent in rupee terms and 17.1 per cent in constant currency, led by strong growth in West Asia and recovering demand in key Asian markets.

 

"In the near term, we remain cautiously optimistic about demand recovery while continuing to invest in our brand, innovation, and customer centricity," Syngle added.

 

Shares of Asian Paints closed trading at ₹2,355.25 on the BSE, up 2.69 per cent, on Tuesday following the release of its quarterly earnings report.