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)

Real Estate

11 May 2026

Danube Launches Greenz Villa Community in Dubai

Danube Properties has launched Greenz by Danube, a fully furnished master villa community in Dubai, unveiled by H.E. Sheikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Tolerance and Coexistence, at an event attended by over 7,000 investors and business leaders.Located near Dubai International Academic City and Dubai Silicon Oasis, the development marks Danube’s first large-scale integrated villa community and is positioned within one of Dubai’s emerging residential corridors.The project will comprise three and four-bedroom townhouses along with five-bedroom semi-detached and twin villas...

Equipment

11 May 2026

ABB Launches IE6 Motor for Hazardous Industrial Areas

ABB has introduced what it claims is the world’s first IE6 Hyper-Efficiency motor certified for hazardous industrial environments under ATEX and IECEx standards.The new Increased Safety motor is based on ABB’s synchronous reluctance (SynRM) technology and is designed without magnets or rare earth materials. According to the company, the motor reduces energy losses by up to 60 per cent compared to standard IE3 induction motors commonly used in hazardous areas.The motor is intended for use in industries such as chemicals, marine, oil and gas, pharmaceuticals and food and beverage, where expl..

Real Estate

11 May 2026

Casagrand Launches 41-Acre Highcity Project in Chennai

Casagrand has launched Casagrand Highcity, a 41-acre integrated residential development on Chennai’s Outer Ring Road (ORR), marking the company’s largest residential project to date.The project will comprise over 4,000 two and three BHK apartments across four G+22 towers and is positioned as one of the largest organised residential developments in the ORR corridor.Located along Chennai’s emerging residential and infrastructure growth belt, the project benefits from connectivity to IT hubs including Navalur, Siruseri SIPCOT and Porur, as well as industrial clusters such as Sriperumbudur, ..