Asian Paints profit drops 24.5% amid weak demand & price cuts in Q1

19 Jul 2024 CW Team

During the quarter, Asian Paints' net sales amounted to Rs 89.7 billion, a decrease of 2.3%. The company noted that the quarter's revenue growth was adversely impacted by price cuts implemented in the previous quarter and changes in product mix.

Profit before interest, depreciation, and tax dropped 19.7% to Rs 18.87 billion for the quarter ending in June.

Asian Paints also reported that regions such as Ethiopia and Sri Lanka experienced growth due to gradual economic recovery, while macroeconomic issues in key markets like Nepal, Bangladesh, and Egypt affected the overall performance of the international business.

"Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter. We delivered a good volume growth of 7% in the decorative segment aided by some movement in rural markets; however, value declined by 3% due to the earlier price decrease and shift in product mix," said Amit Syngle, Managing Director and CEO, Asian Paints, in a release.

"Unexpected material price inflation coupled with supply chain challenges impacted the profitability of the decorative business for the quarter," he added.

The industrial business performed relatively better, growing by 5.8% in value, supported by strong growth in the Auto OEM and powder coatings segments. The economy segment also saw significant uptake, driven by the launch of the revolutionary latex paint NeoBharat, part of Asian Paints' strategy to penetrate the 'bottom of the pyramid' market segment.

Syngle highlighted a progressive quarter for the home d'cor segment, with growth across all categories and strong performance in its Beautiful Home Stores.

Looking ahead, Syngle expressed optimism: "In the near term, we expect demand conditions to improve with better rural sentiment and the monsoons picking up gradually. We remain focused on driving growth through enhanced brand saliency, innovation, and customer centricity."

(Source: BS)

Asian Paints reported a 24.5% decline in net profit for Q1FY25, attributing the drop to weak demand resulting from general elections and severe heat waves. The country's largest paint manufacturer saw its profits fall to Rs 11.7 billion, with the decorative paints business in India experiencing a volume growth of 7%. During the quarter, Asian Paints' net sales amounted to Rs 89.7 billion, a decrease of 2.3%. The company noted that the quarter's revenue growth was adversely impacted by price cuts implemented in the previous quarter and changes in product mix. Profit before interest, depreciation, and tax dropped 19.7% to Rs 18.87 billion for the quarter ending in June. Asian Paints also reported that regions such as Ethiopia and Sri Lanka experienced growth due to gradual economic recovery, while macroeconomic issues in key markets like Nepal, Bangladesh, and Egypt affected the overall performance of the international business. Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter. We delivered a good volume growth of 7% in the decorative segment aided by some movement in rural markets; however, value declined by 3% due to the earlier price decrease and shift in product mix, said Amit Syngle, Managing Director and CEO, Asian Paints, in a release. Unexpected material price inflation coupled with supply chain challenges impacted the profitability of the decorative business for the quarter, he added. The industrial business performed relatively better, growing by 5.8% in value, supported by strong growth in the Auto OEM and powder coatings segments. The economy segment also saw significant uptake, driven by the launch of the revolutionary latex paint NeoBharat, part of Asian Paints' strategy to penetrate the 'bottom of the pyramid' market segment. Syngle highlighted a progressive quarter for the home d'cor segment, with growth across all categories and strong performance in its Beautiful Home Stores. Looking ahead, Syngle expressed optimism: In the near term, we expect demand conditions to improve with better rural sentiment and the monsoons picking up gradually. We remain focused on driving growth through enhanced brand saliency, innovation, and customer centricity. (Source: BS)

Infrastructure Transport

01 Jun 2026

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Infrastructure Urban

01 Jun 2026

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Infrastructure Urban

01 Jun 2026

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..