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Asian Paints on Thursday (May 8, 2025) reported a 45% decline in consolidated net profit to ₹700.83 crore for the March quarter due to muted demand and increased competitive intensity in the market.
The company had logged a net profit of ₹1,275.30 crore in the January-March period last year, according to a regulatory filing by Asian Paints.
Its revenue from operations slipped 4.25% to ₹8,358.91 crore in the March 2025 quarter. It was ₹8,730.76 crore in the year-ago period.
During the quarter, “muted demand conditions and consumer sentiment coupled with downtrading, and increased competitive intensity impacted revenue”, Asian Paints said in its earnings statement.
Asian Paints’ total expenses fell marginally year-on-year to ₹7,276.60 crore in the March quarter.
Its total income, including revenue from other sources, declined 5.14% to ₹8,458.76 crore in the March 2025 quarter.
Its Managing Director and CEO, Amit Syngle, said the weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year.
“The demand for decorative coatings was only marginally better than in the third quarter. The domestic decorative business registered a volume growth of 1.8%, but standalone revenues declined by 5%. The adverse mix and overall lower revenues impacted the quarter’s operating margins on a year-on-year basis,” he added.
However, the industrial business fared relatively better, growing by 6.1%, aided by growth in the General Industrial and Automotive coatings segment.
Asian Paints’ overall revenues from the coatings business in India declined by 4.1% in the quarter.
“Our home decor business faced multiple headwinds, resulting in a muted performance for the quarter,” he said.
In international markets, Asian Paints’ sales decreased in Q4 FY25 by 1.5% to ₹799.7 crore from ₹812.3 crore on the back of currency devaluation in Ethiopia, Egypt and macro-economic challenges in Bangladesh.
“While the overall macroeconomic environment remains uncertain, we are cautiously optimistic about a recovery in demand conditions and continue to work diligently on leveraging our brand strength and driving operational efficiencies to pursue growth,” said Syngle.
For the financial year ended March 31, 2025, Asian Paints’ net profit dipped 33.25% to ₹3,709.71 crore. It was ₹5,557.69 crore a year ago.
In FY25, its total consolidated income of Asian Paints fell 4.7% to ₹34,478.23 crore.
Asian Paints, along with its subsidiaries, has operations in 14 countries with 26 paint manufacturing facilities. It serves in over 60 countries through Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints.
The board of the company on Thursday also recommended the payment of a final dividend of ₹20.55 per equity share of the face value of Re 1 each for FY25.
Shares of Asian Paints on Thursday settled at ₹2,302.50 on BSE, down 1.29% from the previous close.
Published – May 08, 2025 11:19 pm IST