Asian Paints Q3 net falls 1.76% on high raw material cost

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26 Aug, 2025 12:21

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Asian Paints, the country's largest paint company by assets, disappointed street on every parameter. Its third quarter consolidated net profit fell 1.76 percent year-on-year to Rs 329.3 crore, dented by weak demand for industrial paint and high raw material cost.

"Industrial paints segment continued to be impacted by sluggish manufacturing environment in the economy, with no major capex activity. Automotive coatings growth was affected due to the subdued demand in the automotive sector," KBS Anand, MD and CEO elaborated reason for weak bottomline numbers.

However, Anand said international business registered good growth.

Consolidated total income grew 13.2 percent to Rs 3,452 crore in the quarter ended December 2013 from Rs 3,049.6 crore in a year ago period.

According to CNBC-TV18 poll, analysts had expected the paint maker to report net profit of Rs 378 crore on revenue of Rs 3,502 crore for the quarter.

On the operational front, consolidated earnings before interest, tax, depreciation and amortisation climbed 5 percent to Rs 537 crore and operating profit margin declined 110 basis points Y-o-Y to Rs 15.6 percent in the quarter gone by.

Raw material cost jumped 17.35 percent to Rs 1,845.21 crore while depreciation cost surged 73 percent to Rs 63.34 crore and employee benefit expenses rose 29 percent to Rs 197 crore during October-December quarter, year-on-year.