Asian Paints, on Saturday, reported a 42.4% drop in net profit to ₹694.6 crore for Q2 FY25, as sluggish demand and high material costs impacted earnings.
NSE Consolidated net sales fell 5.3% year-over-year, reaching ₹8,003 crore compared to the previous year’s ₹8,451.9 crore.
Profit before depreciation, interest, taxes, and other items (PBDIT) dropped more sharply by 27.8% to ₹1,239.5 crore.
The most significant drop, however, was in net profit, which fell 42.4% to ₹694.6 crore from ₹1,205.
4 crore last year. The company’s operating margins were hit by last year’s price cuts, increased raw material prices, and higher sales expenses. While price adjustments were made this quarter, the full impact is expected in the second half of the year.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a steep decline, with margins compressing to 15.5% of net sales from 20.3% in the same quarter last year.
The industrial coatings segment showed resilience, reporting single-digit growth, driven by gains in general industrial and protective coatings. Home décor continued to grow through the Beautiful Homes Stores network, despite international challenges in key markets like Ethiopia and Bangladesh. CEO Amit Syngle stated, “While demand conditions remain challenging, we continue to direct our efforts towards leveraging our brand strength, robust supply chain and distribution network to pursue growth.
” Asian Paints remains cautiously optimi.
