Asian Paints Q1 results: Net profit falls 24.5% to ₹1,170 crore, revenue misses estimates

In its Q1FY25 results released on Wednesday, July 17, the paints manufacturer reported a 24.5% YoY decline in its consolidated net profit after minority interest at ₹1,170 crore compared to ₹1,574.84 crore in Q1FY24. The company’s profit after tax (PAT) also dropped over 8% quarter-on-quarter from ₹1,275.3 crore in the quarter that ended March 31, 2024.

The company’s consolidated revenue from sales decreased by 2.3% to ₹8,943.2 crore from ₹9,153.8 crore. Company's Q1 revenue and net profit has missed the market expectations.

As per management, the demand scenario for the paint industry during the June quarter was tough. The severe heatwave and general elections impacted consumption.

The company reported a mixed result in its segment-wise revenue. The company’s international sales fell over 2% to ₹679.1 crore in Q1FY25 compared to ₹695.1 crore in Q1FY24. The company informed the stock exchanges that factors such as economic uncertainty, forex crisis, and liquidity issues in key markets of Asia and Egypt led to the decline in sales. However, Asian Paints also said that in constant currency terms, its sales increased by 1.8%.

Despite this, the company registered 7% volume growth in its decorative business (India). Meanwhile, revenue declined by 3%, mainly due to price cuts implemented in the previous quarter and a shift in mix.

The paints manufacturer said its installed capacity at the Mysuru plant increased from 3,00,000 KL per annum to 6,00,000 KL per annum in the June quarter.

In the run-up to the results, shares of Asian Paints have gained 2.57% in five days. However, the stock has fallen 8.7% in six months and 13.28% in a year.

Asian Paints shares closed flat at ₹2,972 apiece on the NSE on July 16, up 0.52%.

The markets were closed for trading today, on Wednesday, July 17, on account of Muharram. The likely impact of the financial results on the price of Asian Paints shares will be seen on Thursday, July 18, when trading resumes.