Asian Paints Faces a Bleak Q3, Profit Falls by Over 23%

Asian Paints shares: Demand woes continued to paint a dim picture for the paints company. For Q3FY25, Asian Paints reported a 23.3% drop in net profit levels at Rs 1,110 crores from Rs 1,447.7 crores recorded in the corresponding quarter of the previous fiscal.

Analysts were already expecting a subdued quarter owing to the weak urban demand play coupled with increasing pressure on margin levels. Even the festive season failed to uplift the overall demand levels.

The revenue figure also dropped by nearly 6% to Rs 8,549 crore during the quarter under review. The PBDIT margin as a percentage of net sales also fell, standing at 19.2% compared to 22.7% in the corresponding period last year.

On Tuesday, the shares of Asian Paints concluded the trading session at Rs 2,350 price level, up by 2.52%.

"The paint industry continued to be impacted by subdued demand conditions during the quarter, especially in the urban centers. We registered a 6.6% decline in the overall coatings business in India, including Industrial. The domestic decorative business delivered a 1.6% volume growth while the standalone revenues declined by 7.5% for the quarter impacted by the weak festive season demand," said Amit Syngle, managing director and CEO of Asian Paints.

Asian Paints Share Price

The shares of the paint company have largely remained in the red, delivering negative returns of over 30%.

In the last 3-year period, the Asian Paint shares' have stayed in a range-bound zone, giving little to no reasons to cheer investors.

A silver lining was witnessed in the international business segment where the company's sales surged by 5% from Rs 779.1 crores to Rs 818 crore. This was majorly driven "on the back of improved macro-economic conditions in Sri Lanka, Bangladesh and Nepal offset by currency devaluation in Ethiopia and Egypt."