Asian Paints Faces Sharp Profit Decline Amid Market Fluctuations

Shares of Asian Paints dropped over 8% due to a 43.71% decline in quarterly net profit, impacted by low demand and material price inflation. The company's market valuation decreased significantly. Revenue fell by 5.3% in the September quarter. Amid challenges, the company plans recovery with price adjustments.

Shares of Asian Paints plummeted more than 8 percent on Monday following the firm's announcement of a significant 43.71 percent decrease in consolidated net profit for the September quarter, amounting to Rs 693.66 crore. The stock hit a 52-week low on the BSE at Rs 2,507.

The company attributed this financial downturn to soft-demand conditions, material price inflation, and a decline in the domestic decorative and coatings business, as detailed in a regulatory filing. Its revenue from operations also saw a decline of 5.3 percent to Rs 8,027.54 crore during the same period.

Despite the challenges, Managing Director & CEO Amit Syngle expressed optimism, stating that the impact of recent price increases is expected to positively affect margins in the coming quarters as material prices are anticipated to soften.

(With inputs from agencies.)