Asian Paints Q2 Results: Consolidated net profit falls by 42% YoY; ₹4.25 per share interim dividend declared

Asian Paints, a leading paint and coating manufacturing company in India, posted its consolidated net profit for the second quarter of the current fiscal (Q2 FY25) at ₹694.6 crore, falling 42.4% from ₹1,205.4 crore in the year-ago period. The company announced its financial results for the July-September quarter on Saturday, November 9.

The consolidated revenue for the reporting quarter also fell by 5.3% YoY to ₹8,003 crore from the previous year’s figure of ₹8,451.9 crore, according to the regulatory filings.

Additionally, the earnings before interest, taxes, depreciation, and amortization (EBITDA) reduced by 27.8%, hitting ₹1,239.5 crore from ₹1,716.2 crore recorded in the quarter ending September previous year. The margin fell down by 480 bps to 15.5%.

“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% for the quarter, impacted by muted consumer sentiments and extended rains and floods in some parts of the country," said Amit Syngle, Managing Director and CEO of Asian Paints, in a press release by the company.

Interim dividend announced

The company announced an interim dividend of ₹4.25 per share for the current fiscal year. The record date, by which the company will determine the eligible shareholders who will receive the dividend, is set as November 19. The payment for the declared dividend will be made on or after November 28.

Key highlights

• Standalone net profit for the company decreased by 48.1% YoY to ₹ 602.3 crores from ₹ 1,160.3 crores. Standalone net sales decreased by 6.5% to ₹ 6,840.6 crores from ₹ 7,315.7 crores in the year-ago period.

• The company said that its consolidated PBDIT (profit before depreciation, interest, tax, other income, and exceptional items), before the share in the profit of associated, fell down by 27.8% to ₹1,239.5 crore from ₹1,716.2 crore in the same period last year. PBDIT margin decreased to 15.5% as compared to 20.3% in the previous year.

• For the company’s International Business segment, sales decreased by 0.7% to ₹769.5 crore from ₹775 crore in the same quarter last year due to macroeconomic and currency devaluation in Ethiopia, Egypt, and Bangladesh. In constant currency terms, sales grew by 8.7%. PBT in Q2FY25 was a loss of ₹21.5 crore as against a profit of ₹40.4 crore in the corresponding period of the previous year, the company said in the release.

• In the Home Decor Business segment, sales of bath fittings increased by 2.1% to ₹83.1 crore from ₹81.4 crore. While the kitchen business sales increased by 8.8% to ₹105.3 crore from ₹96.8 crore in the previous year, sales at White Teak increased by 19.2% to ₹31.1 crore

• In the Industrial Business segment, APPPG sales increased by 6% to ₹265.5 crore from ₹250.6 crore in the year-ago period and PPGAP sales increased by 5.9% to ₹524.4 crore from ₹495.3 crore.

About the company

Asian Paints is India’s top paint and décor company and it is ranked among the world’s top eight coatings manufacturers, the release stated. With a consolidated turnover of ₹35,382 crores and a market capitalisation of nearly ₹2,784.55 billion, the company is a major player in the global coatings industry, it added.

The company operates in 15 countries and has expanded into home decor, going beyond paints. Asian Paints and its subsidiaries, including Apco Coatings, Asian Paints Berger, SCIB Paints, Taubmans and Kadisco Asian Paints, manage 27 manufacturing plants across the globe, serving consumers in more than 60 countries.