Asian Paints Q2 result: Profit falls 42% YoY; board approves interim dividend of ₹4.25; key highlights

Asian Paints Q2 result: On Saturday, November 9, Asian Paints reported its September quarter (Q2FY25) financial results, which showed a nearly 42.4 per cent year-on-year fall in consolidated net profit to ₹694.64 crore. In the corresponding quarter last year, the company earned a profit of ₹1,205.42 crore.

Revenue from sales for the quarter under review also declined 5.3 per cent YoY to ₹8,003.02 crore from ₹8,451.93 crore in the same quarter last year.

’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,” said Amit Syngle, Managing Director and CEO of Asian Paints.

The company said its consolidated PBDIT (profit before depreciation, interest, tax, other income, and exceptional items) (before the share in the profit of associates) decreased by 27.8 per cent to ₹1,239.5 crore from ₹1,716.2 crore.

PBDIT margin as the percentage to net sales declined to 15.5 per cent from 20.3 per cent in the corresponding period of the previous year.

“Operating margins were impacted by the price reductions taken last year, higher material prices and increased sales expenses. While we took price increases during the quarter, the full impact of the same should flow through only in the second half of the year,” Syngle said.

“Soft demand conditions, product mix and material price inflation affected margins in Q2. 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. While demand conditions remain challenging, we continue to direct our efforts towards leveraging our brand strength, robust supply chain and distribution network to pursue growth,” said Syngle.

Meanwhile, the company announced an interim dividend of ₹4.25 per share for FY25. The record date for the purpose of determining the entitlement of the shareholders for interim dividend has been fixed as Tuesday, 19 November 2024, and the dividend will be paid to the shareholders on or after Thursday, 28 November 2024.

Key highlights

International Business

The company said the segment’s sales decreased by 0.7 per cent to ₹769.5 crore in Q2 FY25 from ₹775 crore due to macroeconomic and currency devaluation in Ethiopia, Egypt, and Bangladesh.

In constant currency terms, sales increased by 8.7 per cent. The company said 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.

Home Décor Business

Sales of the bath fittings business increased by 2.1 per cent to ₹83.1 crore from ₹81.4 crore. PBDIT’s loss was ₹5.8 crore, compared to ₹2.1 crore in the corresponding period of the previous year.

Kitchen business sales increased by 8.8 per cent to ₹105.3 crore from ₹96.8 crore. The business had a PBDIT loss of ₹0.1 crore in Q2FY25 as against a profit of ₹0.9 crore in the corresponding period of the previous year.

Sales at White Teak increased by 19.2 per cent to ₹31.1 crore, while those at Weatherseal increased by 4.8 per cent to ₹13.2 crore.

Industrial Business

APPPG sales increased by 6 per cent to ₹265.5 crore from ₹250.6 crore. PBT was ₹18.5 crore against ₹28.4 crore in the corresponding period of previous year.

PPGAP sales increased by 5.9 per cent to ₹524.4 crore from ₹495.3 crore. PBT was ₹82.5 crore against ₹77.1 crore in the corresponding period of the previous year.

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