Asian Paints on Thursday reported a 45% decline in its consolidated net profit to Rs 692 crore for the fourth quarter, as weak urban demand weighed on performance. The net profit stood at Rs 1,257 crore in the same quarter last year.
Revenue from operations also fell 4% year-on-year to Rs 8,330 crore.
The board has recommended a final dividend of Rs 20.55 per share for the financial year 2025, subject to shareholder approval.
The company has fixed June 10 as the record date to determine shareholders' entitlement to the said dividend.
"The weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year. The demand for decorative coatings was only marginally better than in the third quarter," said Amit Syngle, MD and CEO of Asian Paints.
Profit before depreciation, interest, tax, other income, and exceptional items (PBDIT) fell 15% to Rs 1,436 crore in Q4FY25, compared to Rs 1,691 crore in the year-ago period. The PBDIT margin as a percentage of net sales declined to 17.2% from 19.4% YoY.
The decline in margins was driven by an adverse product mix and overall lower revenues.
Segment-wise Performance
Decorative Business (India):
Volume growth stood at 1.8%, while revenue declined 5.2% in Q4FY25. Muted demand, weak consumer sentiment, downtrading, and heightened competitive intensity weighed on the segment’s performance.
Industrial Business:
Posted a 6% revenue growth in Q4FY25, led by strong performance in the General Industrial and Automotive coatings segments.
Home Décor:
The category remained under pressure due to weak household disposable income. Although all home décor segments benefited from synergies with the Beautiful Homes store network, the momentum was below expectations.
"We have taken a prudent assessment of our investments in White Teak and recorded an impairment loss on the investment value during the quarter," the company said.
International Business:
Revenue declined 1.5% due to macroeconomic challenges in Africa. However, key markets in the Middle East and Asia performed well. On a constant currency basis, the international portfolio grew 6% during the quarter.
Outlook
While the macroeconomic environment remains uncertain, the company said it is cautiously optimistic about a recovery in demand conditions.
On Thursday, shares of Asian Paints closed nearly 1% lower at Rs 2,314.60 on the NSE.
Revenue from operations also fell 4% year-on-year to Rs 8,330 crore.
The board has recommended a final dividend of Rs 20.55 per share for the financial year 2025, subject to shareholder approval.
The company has fixed June 10 as the record date to determine shareholders' entitlement to the said dividend.
"The weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year. The demand for decorative coatings was only marginally better than in the third quarter," said Amit Syngle, MD and CEO of Asian Paints.
Profit before depreciation, interest, tax, other income, and exceptional items (PBDIT) fell 15% to Rs 1,436 crore in Q4FY25, compared to Rs 1,691 crore in the year-ago period. The PBDIT margin as a percentage of net sales declined to 17.2% from 19.4% YoY.
The decline in margins was driven by an adverse product mix and overall lower revenues.
Segment-wise Performance
Decorative Business (India):
Volume growth stood at 1.8%, while revenue declined 5.2% in Q4FY25. Muted demand, weak consumer sentiment, downtrading, and heightened competitive intensity weighed on the segment’s performance.
Industrial Business:
Posted a 6% revenue growth in Q4FY25, led by strong performance in the General Industrial and Automotive coatings segments.
Home Décor:
The category remained under pressure due to weak household disposable income. Although all home décor segments benefited from synergies with the Beautiful Homes store network, the momentum was below expectations.
"We have taken a prudent assessment of our investments in White Teak and recorded an impairment loss on the investment value during the quarter," the company said.
International Business:
Revenue declined 1.5% due to macroeconomic challenges in Africa. However, key markets in the Middle East and Asia performed well. On a constant currency basis, the international portfolio grew 6% during the quarter.
Outlook
While the macroeconomic environment remains uncertain, the company said it is cautiously optimistic about a recovery in demand conditions.
On Thursday, shares of Asian Paints closed nearly 1% lower at Rs 2,314.60 on the NSE.
You may also like
Delhi Top 5 MBA Colleges: These are the top MBA colleges in Delhi, if you study from here then you will get a hefty salary..
Researchers find molecule to kill sexually transmitted chlamydia
Mercedes promise 'sexy' car upgrades to build on dominant start to F1 season
Infection kills 28 as UKHSA warns four vulnerable groups
Death in Paradise star Ralf Little reunites with co-star as he returns to screens
