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Asian Paints’ net profit has fallen 24.5% in Q1 of FY25 due to weak demand owing to severe heat waves, the company said.
India’s largest paint maker saw its profits fall to Rs1,170 crore with net sales at Rs8,970 crore, down 2.3%.
The paint major’s profit before interest, depreciation and tax was down 19.7% to Rs 1,887 crore in the quarter ended June.
In the April-June quarter, Asian Paints said that geographies like Ethiopia and Sri Lanka grew well on the back of gradual recovery in these economies, while macroeconomic issues persisted in key markets like Nepal, Bangladesh and Egypt, impacting the overall international business performance.
Amit Syngle, Managing Director and CEO of Asian Paints, said in a release:“Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter. We delivered a good volume growth of 7% in the decorative segment aided by some movement in rural markets, however, value declined by 3% impacted by the price decrease taken earlier in the year and shift in product mix.
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“Unanticipated material price inflation coupled with supply chain challenges impacted profitability of the decorative business for the quarter.”
The Industrial business did relatively better and grew by 5.8% in value, backed by good growth in Auto OEM and powder coatings segment.
Talking about the outlook, Syngle said, “In the near term, we expect demand conditions to improve at the back of improving rural sentiment and monsoons picking up gradually. We remain focused on driving growth through enhanced saliency of our brand, innovation and customer centricity.”
