Asian Paints' revenue from operations was down 5.3 per cent to Rs 8,027.54 crore in the September quarter. In the year-ago period, it stood at Rs 8,478.57 crore
Asian Paints on Saturday reported a 43.71 per cent decline in consolidated net profit to Rs 693.66 crore for the September quarter, impacted by soft-demand conditions, material price inflation and a decline in decorative and coatings business in the domestic market.
The company had logged a net profit of Rs 1,232.39 crore during the July-September period a year ago, according to a regulatory filing by Asian Paints.
Its revenue from operations was down 5.3 per cent to Rs 8,027.54 crore in the September quarter. In the year-ago period, it stood at Rs 8,478.57 crore.
"On the margin front, soft-demand conditions, product mix, and material price inflation affected margins in Q2," Asian Paints said in its earning statement.
Asian Paints' total expenses were at Rs 7,093.03 crore in the September quarter, up 1 per cent.
Its total income, which includes revenue from other sources, was down 5.12 per cent at Rs 8,201.09 crore during the second quarter of the current fiscal year.
Managing Director & CEO Amit Syngle said, "The paint industry faced a subdued demand environment during the quarter. Domestic decorative coatings segment volumes declined marginally while overall domestic coatings revenue declined by 5.5 per cent for the quarter impacted by muted consumer sentiments and extended rains and floods in some parts of the country."
Though the company took price increases during the quarter, full impact of the same should flow through only in the second half of the year, he added.
"We expect margins to recover in the coming quarters on the back of anticipated softening in material prices coupled with price increases implemented in the last few months," said Syngle.
In international business, Asian Paints' sales decreased 0.7 per cent to Rs 769.5 crore on the back of macro-economic and currency devaluation in Ethiopia, Egypt, and Bangladesh.
However, in constant currency terms, "sales increased 8.7 per cent. PBT in Q2 FY25 was a loss of Rs 21.5 crore as against profit of Rs 40.4 crore in the corresponding period of the previous year".
Meanwhile, in a separate filing, Asian Paints said its board had approved an interim dividend of Rs 4.25 per equity share of the face value of Re 1 each for the financial year ending March 31, 2025.
Asian Paints is India's leading paint and decor company, ranked among the top 8 coatings companies in the world with a consolidated turnover of Rs 35,382 crore. It has operations in 15 countries across the world with 27 paint manufacturing facilities, servicing consumers in over 60 countries.