Mumbai: Asian Paints on Wednesday reported a nearly 25 percent year-on-year decline in its consolidated net profit for Q1 FY25, amounting to Rs 1,170 crore, due to a challenging demand environment.
"Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter," said Amit Syngle, Managing Director and CEO of Asian Paints in a statement.
However, the company expects the demand to improve shortly. "In the near term, we expect demand conditions to improve at the back of improving rural sentiment and monsoons picking up gradually," Syngle added.
PBDIT (Profit before depreciation, interest, tax, other income, and exceptional items), before share in profit of associates, fell 20 percent to Rs 1,693.8 crore from Rs 2,121.3 crore. PBDIT margin as percentage of Net Sales shrunk to 18.9 percent from 23.2 percent in the corresponding period of the previous year, said the company in a statement.
Asian Paints' international business sales decreased by 2.3 percent to Rs 679.1 crore, down from Rs 695.1 crore, due to economic uncertainty, forex crises, and liquidity issues in key markets such as Asia and Egypt, according to the statement.
On a positive note, the home decor business experienced growth in sales, particularly in bath fittings and the kitchen segment.
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