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The company’s decorative business registered a volume growth of 1.6% during the quarter, while the street was anticipating flat volume growth.
Asian Paints reported a 6% decline in its revenue for the quarter compared to the year-ago period. The revenue of ₹8,549 crore was lower than the CNBC-TV18 poll of ₹8,830 crore. Muted demand conditions coupled with downtrading and a weak festive season impacted the revenue performance.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 20% from last year to ₹1,637 crore, which was in-line with expectations of ₹1,645 crore while margins narrowed by 310 basis points to 19.5%, while a CNBC-TV18 poll had pegged the figure at 18.6%.
Weak product mix, higher cost of sales and negative operating leverage is likely to have hurt margins during the quarter. The company had reported a margin figure of 22.6% last year.
The company’s net profit fell 23.5% from last year to ₹1,128 crore, which was marginally below expectations of ₹1,150 crore.
“In the near-term, we remain cautiously optimistic on a recovery in demand conditions, while we continue to invest in our brand and focus on innovation and customer centricity,” Asian Paints MD & CEO Amit Syngle was quoted as saying.
The company’s industrial business fared better with revenue growth of 3.8%, supported by growth in the General Industrial and refinish segments. International portfolio grew by 5% and by 17.1% in constant currency terms, driven by growth in the Middle East and recovering macro-economic conditions in key Asian markets.
Shares of Asian Paints are have surged to the day’s high, trading 4.8% higher at ₹2,404.
First Published: Feb 4, 2025 12:08 PM IS