Asian Paints Faces Profit Dip Amid Festive Season Slump

Asian Paints reported a 23.5% drop in net profit for Q3 2024 due to muted demand and a weak festive season. Revenue decreased by 6%, influenced by economic conditions and downtrading. The company remains cautiously optimistic about future demand recovery while focusing on brand investment and innovation.

Asian Paints reported a significant decline in consolidated net profit, dropping 23.5% to Rs 1,128.43 crore in the third quarter ending December 2024. The reduction is attributed to muted demand and a weak festive season, marking a fall from the Rs 1,475.16 crore profit in the same period last year.

Revenue from operations also decreased by 6% to Rs 8,549.44 crore, affected by downtrading and subdued festive demand. Total expenses reduced to Rs 7,224.10 crore, slightly down by 1.33% year-on-year. Despite sequential improvements, operating margins suffered due to an adverse mix and increased sales expenses, said CEO Amit Syngle.

The international business saw a 5% increase in sales, thanks to better conditions in markets like Sri Lanka and Bangladesh, offset by currency issues in Ethiopia and Egypt. Despite current challenges, Asian Paints maintains a cautiously optimistic outlook, keeping focus on brand and innovation.

(With inputs from agencies.)