Time: 2024-07-24
Asian Paints Ltd reported a 24.54 percent decrease in its first - quarter consolidated net profit for the financial year 2024 - 25 ( FY25 ) . The profit during the June 2024 quarter was Rs 1,169.98 crore , down from Rs 1,550.37 crore in the same period last year . Revenue from operations also fell by 2.32 percent to Rs 8,969.73 crore in Q1 FY25 compared to Rs 9,182.31 crore in the corresponding period a year ago.
The challenging demand conditions for the paint industry were attributed to the severe heatwave and general elections in the quarter . Despite a good volume growth of 7 percent in the decorative segment , the value declined by 3 percent due to price decreases earlier in the year and a shift in product mix , according to Amit Syngle , Managing Director & CEO of Asian Paints.
Unanticipated material price inflation and supply chain challenges affected the profitability of the Decorative business for the quarter . However , the company expects demand to improve in the near term with better rural sentiment and a gradual pickup in monsoons . Asian Paints remains focused on driving growth through brand saliency , innovation , and customer centricity , as mentioned by Syngle.
On the international front , Asian Paints ' sales decreased by 2.3 percent to Rs 679.1 crore from Rs 695.1 crore , mainly due to economic uncertainty , forex crisis , and liquidity issues in key markets like Asia and Egypt . In constant currency terms , sales increased by 1.8 percent . The profit before tax before exceptional items was Rs 6.5 crore , compared to Rs 26.5 crore in the same period last year.
Indian equity markets were closed due to Muharram , with the domestic bourses scheduled to reopen on July 18 , 2024 . Shares of Asian Paints were last seen trading 0.61 percent higher at Rs 2,974.40 . The company anticipates an improvement in demand conditions in the coming months , supported by rural sentiments and an uptick in monsoon activity.
In conclusion , despite the challenges faced in the first quarter , Asian Paints is optimistic about the future and remains committed to driving growth through various strategic initiatives and a customer - centric approach . With a focus on innovation and brand enhancement , the company aims to navigate through the current market conditions and emerge stronger in the coming quarters.