Asian Paints' Q1 Results: A Challenging Quarter Amid Demand Slowdown
Asian Paints Ltd reported a 24.64% decline in consolidated net profit to Rs 1,186.79 crore in the June quarter, impacted by demand slowdown and general elections.
Asian PaintsQ1 ResultsPaint IndustryDemand SlowdownNet ProfitReal Estate MumbaiJul 17, 2024
The company's consolidated net profit for the June quarter declined 24.64% to Rs 1,186.79 crore, compared to Rs 1,574.84 crore in the corresponding period last year. Total expenses for the quarter increased to Rs 7,559.04 crore, up from Rs 7,305.09 crore in the previous year.
According to Amit Syngle, Managing Director & CEO of Asian Paints Ltd, the demand conditions for the paint industry were tough due to the heatwave and general elections. Despite delivering a good volume growth of 7% in the decorative segment, the company's value declined 3% due to a price decrease taken earlier in the year and a shift in product mix. Unanticipated material price inflation and supply chain challenges also impacted the profitability of the decorative business.
However, the industrial business performed relatively better, growing 5.8% by value on the back of good growth in the auto OEM and powder coatings segment. On the international front, geographies like Ethiopia and Sri Lanka grew well in the first quarter due to gradual recovery in these economies. Nevertheless, key macroeconomic issues persisted in markets like Nepal, Bangladesh, and Egypt, impacting the overall performance for international business.
Looking ahead, Syngle expressed optimism about improving demand conditions in the near term, driven by improving rural sentiment and the monsoon picking up gradually. The company remains focused on driving growth through enhanced brand saliency, innovation, and customer centricity.
Information
Asian Paints Ltd is an Indian multinational paint company headquartered in Mumbai, India. Founded in 1942, the company has grown to become one of the largest paint manufacturers in Asia, with operations in over 20 countries.
Asian Paints Ltd is committed to delivering high-quality paints and coatings that meet the evolving needs of its customers. With a strong focus on innovation, sustainability, and customer satisfaction, the company continues to expand its presence in the global market.
Frequently Asked Questions
What was Asian Paints' consolidated revenue from operations in Q1?
Rs 8,969.73 crore
What was the decline in Asian Paints' consolidated net profit in Q1?
24.64%
What were the primary reasons for the decline in Asian Paints' revenue and profit?
Demand slowdown and general elections
How did Asian Paints' industrial business perform in Q1?
It grew 5.8% by value on the back of good growth in the auto OEM and powder coatings segment
What is Asian Paints' outlook for the near term?
Improving demand conditions driven by improving rural sentiment and the monsoon picking up gradually
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