Asian Paints Q2 Result: Net profit declines 43% on weak demand, revenue dips 5%

Asian Paints’ consolidated PBDIT, excluding profit from associates, dropped 27.8 percent to Rs 1,239.5 crore, down from Rs 1,716.2 crore.

Asian Paints posted its Q2FY25 financial results on November 9, revealing a 42.4 percent year-on-year dip in consolidated net profit, which came in at Rs 694.64 crore, down from Rs 1,205.42 crore a year earlier. Quarterly revenue from sales slipped 5.3 percent to Rs 8,003.02 crore, compared to Rs 8,451.93 crore in the same period last year.

Managing Director and CEO Amit Syngle pointed to weak consumer demand and adverse weather conditions as key factors affecting performance. The paint sector faced muted demand. Domestic decorative coatings volume declined slightly, with overall revenue in domestic coatings falling by 5.5 percent due to sluggish consumer sentiment and prolonged rains in some regions, he explained.

Asian Paints' consolidated PBDIT, excluding profit from associates, dropped 27.8 percent to Rs 1,239.5 crore, down from Rs 1,716.2 crore. The PBDIT margin as a percentage of net sales declined to 15.5 percent from 20.3 percent a year ago.

Syngle highlighted that "operating margins were impacted by last year's price cuts, along with higher input costs and increased selling expenses". He also mentioned that recent price hikes should contribute positively to margins in the second half of the fiscal year.

Syngle expressed optimism about a potential margin recovery in the upcoming quarters, expecting relief from lower raw material costs combined with recent price adjustments. Despite ongoing demand challenges, Asian Paints said it is leveraging the brand strength and broad distribution network to pursue growth.