Asian Paints Q1 Results: Net profit drops 24% to ₹1,170 crore, decorative biz volume up 7%; Revenue down 2.3% YoY

Asian Paints Q1 Results: Net profit drops 24% to ₹1,170 crore, decorative biz volume up 7%; Revenue down 2.3% YoY

MINT | July 17, 2024 | 04:38 PM IST | Breaking News | Follow on Google News

Asian Paints Q1 Results: Net profit drops 24% to ₹1,170 crore, decorative biz volume up 7%; Revenue down 2.3% YoY

Asian Paints Q1 Results: Net profit drops 24% to ₹1,170 crore, decorative biz volume up 7%; Revenue down 2.3% YoY

Asian Paints Q1 Results: Asian Paints announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Wednesday, July 17, reporting a drop of 24.6 per cent in consolidated net profit at ₹1,170 crore, compared to ₹1,383 crore in the corresponding period last year.

The leading paint and decor company’s total revenue from operations in the first quarter of current fiscal dropped 2.3 per cent to ₹8,943 crore, compared to ₹9,154 crore in the year ago period.

“Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections i n the quarter. We delivered a good volume growth of 7% in the decorative segment aided by some movement i n rural markets, however value declined by 3% impacted by the price decrease taken earlier in the year and shift in product mix. Unanticipated material price inflation coupled with supply chain challenges impacted profitability of the Decorative business for the quarter. 

The Industrial business did relatively better and grew by 5.8% by value backed by good growth in Auto OEM and powder coatings segment. Economy segment saw a good offtake aided by the launch of our revolutionary latex paint NeoBharat, which is part of our focused approach to make further inroads in the ‘bottom of the pyramid’ segment.

On the International front, geographies like Ethiopia and Sri Lanka grew well in Q1 on the back of gradual r ecovery in these economies, however key macroeconomic issues persisted in markets like Nepal, Bangladesh and Egypt impacting the overall performance for the International business. We saw a progressive quarter in Home Décor, with growth in all the categories and a strong growth in our Beautiful Home Stores.

In the near term, we expect demand conditions to improve at the back of improving rural sentiment and monsoons picking up gradually. We remain focused on driving growth through enhanced saliency of our brand, innovation and customer centricity.” said Amit Syngle, Managing Director & CEO of Asian Paints Limited.

MINT