Asian Paints Q4 FY25 net profit declined 45 percent year-on-year to Rs 692 crore, falling more than the Street expectations. A Moneycontrol poll of brokerages pegged Asian Paints January-March quarter net profit at Rs 1,069 crore, down 15 percent from a year ago.
The paint maker reported an exceptional item of Rs 182.96 crore in its consolidated financials for Q4 FY25, which includes a Rs 83.7 crore loss on the divestment of its Indonesian subsidiaries, and impairment losses of Rs 77.8 crore and Rs 21.5 crore on goodwill and intangibles related to the acquisitions of Obgenix Software (White Teak) and Causeway Paints (Sri Lanka), respectively.
Its decorative paints business registered volume growth of 1.8 per cent with revenue decline of 5.2 per cent in the January to March quarter. "Muted demand conditions and consumer sentiment coupled with downtrading, and increased competitive intensity impacted revenue." the company said.
Consolidated revenue for the fiscal fourth quarter also fell by 4.3 percent to Rs 8,359 crore, versus the Moneycontrol poll estimate of Rs 8,619 crore.
"The weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year," said Amit Syngle, Managing Director & CEO.
Asian Paints board recommended a final dividend of Rs 20.55 per equity share of Re 1 each, taking the total dividend for the fiscal year 2024-25 to Rs 24.8 per share. The record date for the final dividend has been set as 10 June 2025, whereas the payout, if approved by shareholders, will be made on 30 June 2025.
Asian Paints share price fell after the Q4 earnings, with the stock trading at Rs 2,310.7 on NSE, down 1% from the previous close.
On a standalone basis, revenue fell 5.1 per cent to Rs 7,192.4 crore, while net profit plunged 42.6 per cent to Rs 694.3 crore. The company booked an exceptional item of Rs 179.81 crore in its standalone results, which includes an impairment loss of Rs 101.3 crore on its investment in Obgenix Software (White Teak) and a fair valuation loss of Rs 78.51 crore on derivative contracts linked to a future 40 per cent stake purchase in the same entity.
As of 2023, Asian paints holds a 60 percent stake in White Teak, by virtue of which the brand has become a subsidiary of the company.
Segment results
Home Décor categories saw a muted performance in Q4 FY’25 with pressure on household disposable incomes. In bath fittings business, quarterly sales increased in by 3.7 per cent to Rs 91.9 crores from Rs 88.7 crores. PBDIT (Profit Before Depreciation, Interest, and Taxes )loss narrowed to Rs 2.7 crores against loss of Rs 10.0 crores in the corresponding period of the previous year. Kitchen business revenue fell 15.5 per cent to Rs 85.1 crores. The business had PBDIT loss of Rs 13.0 crores in Q4 FY25 as against profit of Rs 2.7 crores in the corresponding period of previous year.
Sales from industrial businesses, which sells protective and automotive coatings, rose by 10.8 per cent to Rs 347.1 crore in the quarter.
International business registered a value decline of 1.5% on the back of currency devaluation in Ethiopia, Egypt and macro-economic challenges in Bangladesh. On a constant currency basis, the international portfolio delivered revenue growth of 6 per cent for the quarter.
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