Asian Paints April-June Profit Down 6% At ₹11 Billion

A slight recovery in urban demand helped Asian Paints Ltd. post a consolidated net profit of ₹11.00 billion for April–June, down 6% from a year ago. The company said the June quarter saw marginally better demand in urban markets, though early monsoon rains slowed momentum.

Sequentially, net profit rose 59% and revenue increased 7%. However, revenue for the quarter slipped 0.4% on year to ₹89.39 billion, weighed down by weak home decor sales and a change in product mix. Domestic coatings revenue dipped 0.2%, while decorative paints volume grew 3.9% but revenue declined 1.2%.

Industrial coatings revenue rose 8.8%, helped by strong performance in the automobile and protective coatings segments. International business revenue grew 17.5% on year in constant currency terms, led by gains in Asian markets, the UAE, and Egypt.

The home decor segment continued to face pressure due to weak retail consumption and lower household disposable income. Sales in the bath fittings and kitchen categories fell 5.1% and 2.3%, respectively. White Teak and Weatherseal brand sales dropped 31.9%.

However, its Beautiful Homes retail chain continued to perform well.

Asian Paints’ EBITDA margin was 18.2%, slightly lower than 18.9% a year ago. EBITDA for the quarter fell 4.1% on year to ₹16.25 billion. Operating margins were impacted by higher sales and marketing investments.

Total expenses rose 1.3% to ₹76.59 billion. Other expenses increased 2.8% to ₹14.86 billion. Employee costs grew 4.3% to ₹7.03 billion, while finance cost fell nearly 20% to ₹445.00 million.