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Asian Paints Q1 Net profit drops 24%
Asian Paints released its Q1 FY25 results on July 17, revealing a significant 25% year-on-year decline in consolidated net profit to Rs 1,170 crore. This downturn, larger than analysts anticipated, reflects challenging market conditions exacerbated by factors like a severe heatwave and concurrent general elections. Amit Syngle, Managing Director and CEO, attributed the tough demand environment to these factors but expressed optimism about imminent improvements, citing rising rural sentiment and the ongoing monsoon season.
In addition to the profit decline, April-June revenue also fell short of expectations, declining over 2% to Rs 8,970 crore. Notably, PBDIT before exceptional items dropped by 20%, reaching Rs 1,693.8 crore, with a corresponding decrease in PBDIT margin from 23.2% to 18.9% year-on-year.
Internationally, Asian Paints faced a 2.3% sales reduction to Rs 679.1 crore, primarily due to economic uncertainty, forex challenges, and liquidity issues in critical markets such as Asia and Egypt. However, within its home decor segment, the company experienced growth, particularly in bath fittings and kitchen business, which grew by 10% and 4.6% respectively.
Prior to the earnings announcement, Asian Paints’ shares closed slightly higher at Rs 2,968 apiece on the NSE on July 16.
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