Asian Paints’ Q2FY25 Results

• Asian Paints reported a 10% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Sept (Q2FY25). On a year-on-year (YoY) basis, it reduced by 5%.
• Its expenses for the quarter were down by 6% QoQ and up by 1% YoY.
• The net profit reduced 42% QoQ and 44% YoY.
• The earnings per share (EPS) of Asian Paints stood at 7.2 during Q2FY25.

Asian Paints’ Financial Statements for Q2FY25:

Financials:

• Consolidated Net Sales decreased by 5.3% to ₹8,003.0 crores from ₹8,451.9 crores.
• PBDIT [Profit before depreciation, interest, tax, other income, and exceptional items] (before share in profit of associates) decreased by 27.8% to ₹1,239.5 crores from ₹1,716.2 crores.
• PBDIT Margin as % to Net Sales at 15.5% from 20.3% in the corresponding period of the previous year.
• Profit before exceptional items and tax decreased by 31.0% to ₹1,139.2 crores from ₹1,650.9 crores.
• Exceptional item of ₹180.1 crores is an aggregate representing impairment provision on 'Goodwill on Consolidation' of ₹124.0 crores, recognised on White Teak and foreign exchange loss pertaining to our subsidiary in Ethiopia of ₹56.1 crores.
• Net Profit after minority interest decreased by 42.4% to ₹694.6 crores from ₹1,205.4 crores.

Management Commentary:

Amit Syngle, Managing Director & CEO of Asian Paints Limited, said,

• Paint industry faced subdued demand, with domestic decorative coatings segment volumes slightly declining.
• Domestic coatings revenue dropped by 5.5% due to weak consumer sentiment and weather impact.
• Operating margins were affected by prior price reductions, higher material costs, and increased sales expenses.
• Industrial Business saw single-digit growth, supported by General Industrial segments, Protective Coatings, and Refinish segments.
• Home Décor categories continued growth via Beautiful Homes Stores.
• International Business revenue declined marginally, though grew 8.7% in constant currency.
• Margins pressured by soft demand, product mix, and material price inflation; improvement expected as material costs soften.
• Focus remains on leveraging brand, supply chain, and distribution for growth.

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