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Informist, Tuesday, Feb. 4, 2025

 

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--Asian Paints Oct-Dec earnings hit by subdued demand in urban centres 
--Asian Paints Oct-Dec industrial business sales up 3.8% on year 
--Asian Paints Oct-Dec intl business revenue up 17.1% in constant currency 
--Asian Paints Oct-Dec India decorative ops hit by weak demand, downtrading 
--Asian Paints Oct-Dec India decorative ops sales hit by weak festive season 
--Asian Paints Oct-Dec India decorative paints revenue down 7.8% on year 
--Asian Paints Oct-Dec India decorative paints volume up 1.6% on year 
--Asian Paints Oct-Dec consol EBITDA margin 19.2% vs 22.7% year ago 
--Asian Paints Oct-Dec consol EBITDA INR 16.37 bln, down 20.4% on year 
--Asian Paints Apr-Dec consol revenue INR 255.47 bln vs 267.64 bln year ago 
--Asian Paints Apr-Dec consol net profit INR 29.75 bln vs 42.04 bln year ago 
--Asian Paints Oct-Dec consol revenue INR 85.49 bln vs 91.03 bln year ago 
--Asian Paints Oct-Dec consol net profit INR 11.10 bln vs INR 14.48 bln 
--Analysts saw Asian Paints Oct-Dec consol net profit INR 11.21 bln 
--Asian Paints Oct-Dec consol net profit INR 11.10 bln
 

 

By Narayana Krishna

 

HYDERABAD - Hit by subdued demand, decorative paints maker Asian Paints Ltd Tuesday reported a 23% on-year fall in its consolidated net profit for Oct-Dec at INR 11.1 billion rupees. This is the third consecutive quarter that the company has reported a drop in net profit.

 

Analysts had estimated Asian Paints' Oct-Dec consolidated net profit at INR 11.21 billion. The company's revenue for the quarter fell over 6% on year to INR 85.49 billion. The drop in revenue is the steepest in the last three quarters.

 

Overall muted demand conditions, downtrading, and a weak festival season impacted revenue for the quarter, Asian Paints said in a press release, adding that the earnings were also hit by weak urban demand.

 

The company's decorative paints volumes rose 1.6% on year, but revenue from this segment was down 7.8% on year.  More

 

Sequentially, the company's net profit rose nearly 60%, while revenue was up 6.5%.

 

"In the near term, we remain cautiously optimistic on a recovery in demand conditions while we continue to invest in our brand and focus on innovation and customer centricity," said Managing Director and Chief Executive Officer Amit Syngle.

 

Asian Paints' home decor business benefited from the expansion of its retail network across the country, the company said. The industrial business grew 3.8% on year, led by general industrial and refinish segment sales.

 

Asian Paints' international business revenue rose 17.1% in constant currency terms, driven by West Asia and a macroeconomic recovery in other Asian markets, the company said. Recovery in markets such as Sri Lanka, Bangladesh and Nepal helped the company offset the impact of currency devaluation in Ethiopia and Egypt.

 

Under home decor, sales in the bath fittings segment rose 2.6% and kitchen business sales were up 2.7% on year, while white teak and weatherseal segment saw a decline of 22.8% on year in sales.

 

Asian Paints' earnings before interest, tax, depreciation and amortisation margin for the quarter fell by nearly 350 basis points on year to 19.2%. An ddverse product mix with higher sales and distribution expenses affected the operating margin on an annual basis, while sequentially it saw an improvement, the company said. EBITDA for the quarter fell 20.4% on year to INR 16.37 billion.

 

While the company's total expenses fell 1.3% on year to INR 72.2 billion, other expenses, which include advertisement, sales and operating expenses, rose 2.5% on year to INR 13.8 billion. Employee benefit expenses rose nearly 8% on year to INR 6.1 billion. Raw material costs fell 2.5% on year to INR 37.4 billion.

 

For the nine months ended December, Asian Paints' net profit fell over 29% on year to INR 29.75 billion, while revenue was down 4.6% on year at INR 255.47 billion.

 

On Tuesday, shares of Asian Paints ended at INR 2354.35 on the National Stock Exchange, up 2.7% from its previous close.  End

 

Edited by Avishek Dutta

 

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