Asian Paints Faces Profit Decline Amid Tough Market Conditions

Asian Paints reported a 43.71% drop in net profit to Rs 693.66 crore for the September quarter, affected by weak demand and rising material costs. Revenue decreased by 5.3%, with the domestic coatings segment hit hardest. However, the company anticipates recovery in margins as material prices soften.

Asian Paints has experienced a significant decrease in profitability this quarter, with net profit dropping 43.71% to Rs 693.66 crore. The decline was attributed to challenging demand conditions, rising material costs, and a dip in the decorative and coatings sector.

Compared to the same quarter last year, where the company recorded Rs 1,232.39 crore in profit, total revenues for the current September quarter fell by 5.3%, amounting to Rs 8,027.54 crore. The company attributed reduced margins to the difficult market dynamics prevalent throughout Q2.

Amit Syngle, Managing Director & CEO of Asian Paints, stated that domestic coatings were particularly affected, and although price increases were implemented, their full benefits are expected in the latter half of the fiscal year. On the international front, sales fell by 0.7% due to macroeconomic and currency devaluation impacts, though constant currency sales actually increased 8.7%.

(With inputs from agencies.)