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

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

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)

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)

Next Story
Infrastructure Urban

Jupiter Opens First EV Showroom in Hyderabad

Jupiter Electric Mobility Pvt Ltd (JEM), the electric commercial vehicle arm of Jupiter Wagons Ltd, has inaugurated its first showroom in New Bowenpally, Secunderabad, Hyderabad. The launch also marks the introduction of its 1.05-tonne four-wheeler electric light commercial vehicle (eLCV), JEM TEZ, to Telangana’s growing logistics and intra-city freight market. This expansion underscores JEM’s commitment to delivering purpose-built sustainable mobility solutions and accelerating the electrification of India’s logistics sector.The new showroom, operated by Arven Motors Pvt Ltd, offers cus..

Next Story
Infrastructure Energy

Premier Energies Launches 620W DCR Solar Modules in India

Premier Energies Limited, one of India’s largest integrated solar manufacturers, has launched its next-generation 620W DCR solar modules using G12R TOPCon technology, now among the most powerful large-format panels available in the country.The new modules, built with Tunnel Oxide Passivated Contact (TOPCon) architecture, deliver superior power density, improved temperature coefficients, and enhanced low-light performance. The rectangular G12R N-type cell design enables higher string power and balance-of-system optimisation, making the panels suitable for utility-scale projects as well as com..

Next Story
Infrastructure Energy

ONGC Starts Gas Sales from Rajasthan Chinnewala Tibba Block

Oil and Natural Gas Corporation Limited (ONGC) has commenced natural gas sales from the Discovered Small Field (DSF-II) Block RJ/ONDSF/Chinnewala/2018, marking the successful monetisation of the Chinnewala Tibba field in the Rajasthan Kutch Onland Exploratory Asset (RKOEA). Gas sales officially began on 25 August 2025.This development highlights ONGC’s commitment to boosting domestic energy production and strengthening India’s energy security under the guidance of the Ministry of Petroleum and Natural Gas. Located in western Rajasthan, close to the Indo-Pakistan border, the Chinnewala Tibb..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?