Mon Nov 11 05:05:14 UTC 2024: ## Asian Paints Reports 42.4% Decline in Q2 Profit, Blames Weak Consumer Sentiment
**Mumbai, India:** Asian Paints Limited on Saturday reported a significant 42.4% drop in its net profit for the July-September quarter (Q2 FY25), reaching ₹694.6 crore compared to ₹1,205.4 crore in the same period last year. The company also saw a 5.3% decline in revenue to ₹8,003.02 crore, down from ₹8,451.93 crore in Q2 FY24.
The decline in profit was attributed to a slump in demand across the paint industry, particularly in the domestic decorative coatings segment.
**”There was a slight decline in volume in the domestic decorative coatings segment, while total domestic coatings revenue declined by 5.5% during the quarter,”** said Amit Singal, MD & CEO of Asian Paints. He attributed the fall to weak consumer sentiment and the impact of rain and floods in some parts of the country.
The company also cited challenging market conditions in key markets like Ethiopia and Bangladesh for a slight dip in international business revenue.
**Despite the challenges, the industrial business segment, including general industrial, protective coatings, and refinish, saw positive single-digit growth.** The company also witnessed continued momentum in the home decor category.
While the company did implement price increases during the quarter, Singal stated that the full impact of these increases will be reflected in the second half of the year. He also expressed optimism about improved margins in the coming quarters due to the price hikes and anticipated easing of raw material prices.
**Asian Paints’ share price closed at ₹2,769.25 on Friday, down 2.61% from the previous day’s close.**
The company’s consolidated profit before depreciation, interest, and taxes (PBIDT) fell by 27.8% year-on-year to ₹1,239.5 crore, while its consolidated net sales declined by 3.7% to ₹16,946.3 crore.
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