Earnings Review
Asian Paints consol PAT down 6% YoY, but better than view
This story was originally published at 16:25 IST on 29 July 2025
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--Asian Paints Apr-Jun consol PAT INR 11.00 bln vs INR 11.70 bln year ago
--Analysts saw Asian Paints Apr-Jun consol net profit at INR 10.82 bln
--Asian Paints Apr-Jun consol revenue INR 89.39 bln vs INR 89.70 bln year ago
--Asian Paints Apr-Jun consol EBITDA INR 16.25 bln vs INR 16.94 bln year ago
--Asian Paints Apr-Jun consol EBITDA margin 18.2% vs 18.9% year ago
--Asian Paints Apr-Jun consol EBITDA down 4.1% on year
--Asian Paints Q1 India decorative paints sales dn 1.2%, volume up 3.9% YoY
--Asian Paints Apr-Jun intl business revenue up 17.5% in constant currency
--Asian Paints shares at INR 2,400, up INR 40.40 or 1.7%
--Asian Paints shares recover; now up 1.7% vs down 0.7?rlier
--Asian Paints shares recover; Apr-Jun consol PAT beats analysts' estimate
--Asian Paints: Paints industry saw marginal improvement in urban demand Q1
--Asian Paints: Monsoons hit demand momentum in paints ops in June
--Asian Paints: Q1 home decor ops sales down on subdued retail consumption
--Asian Paints:Home decor sales dn on pressure on household disposable income
By Narayana Krishna
HYDERABAD - A slight recovery in urban demand helped Asian Paints Ltd. to report net profit for the June quarter that was slightly higher than estimated. The paints and home decor company reported a 6% on-year fall in consolidated net profit to INR 11.00 billion, against the average of analysts' estimates of INR 10.82 billion.
"The paint industry experienced a slight uptick this quarter, driven by marginally improved demand from urban centres, despite monsoons slowing the momentum in June," Asian Paints said in press release, quoting Amit Syngle, managing director and chief executive officer.
Though the net profit declined, the year-on-year fall was lower than in the four preceding quarters, when the company's net profit saw a 25-45?ll on year. Sequentially, the net profit of Asian Paints is up 59% and the revenue is up 7%.
The company's revenue for the June quarter slipped 0.4% on year to INR 89.39 billion. The June quarter sales were hit by the early onset of the monsoon and by an overall slowdown in home decor segment sales, Asian Paints said.
Other than the subdued demand environment owing to macroeconomic uncertainties and early rains, a shift in the product mix also affected revenue for the quarter, the company said. Its revenue from the coatings business in India was down 0.2% on year. The domestic decorative paints business did better than a year ago in volume terms, registering a growth of 3.9%, but the revenue declined 1.2%. On the other hand, the company's revenue from the industrial coatings business grew 8.8% on the back of good performance in the automobile and protective coating segments, the company said.
Growth in the Asian markets, the United Arab Emirates, and Egypt saw the company's international business sales jump 17.5% on year in constant currency terms, Asian Paints said.
The company said the home decor business was slow because of subdued retail consumption and pressure on household disposable incomes, but the retail chain of Beautiful Homes stores did well. Within the home decor segment, sales of the bath fittings business declined 5.1% and kitchen business sales by 2.3%. White Teak and Weatherseal brand sales were down 31.9%.
"(We are) confident in the long-term growth potential of the home decor and paints industry, we continue to drive innovation and strengthen our brand saliency as we navigate the current demand challenges," Asian Paints said.
The consolidated earnings before interest, tax, depreciation and amortisation margin of Asian Paints for the quarter was marginally down at 18.2%, against 18.9% a year ago. The EBITDA fell 4.1% on year to INR 16.25 billion against the analysts' estimate of INR 16.49 billion. The operating margin for the quarter was also marginally lower on account of higher sales and marketing investments, Asian Paints said.
The company's June quarter total expenses rose 1.3% on year to INR 76.59 billion. Other expenses were up 2.8% on year at INR 14.86 billion. The company's finance cost for the quarter declined nearly 20% on year to INR 445.00 million. Employee benefit expenses, which are part of the marketing costs, rose 4.3% on year to INR 7.03 billion.
Tuesday, shares of Asian Paints closed 1.8% higher at INR 2,401.50 on the National Stock Exchange. The company detailed its quarterly financial results during market hours. The stock was down ahead of the earnings. End
Edited by Rajeev Pai
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