Asian Paints said on Saturday that its Q2 FY25 net profit dropped 42.4% to ₹694.6 crore due to low demand and high material costs. Compared to the previous year’s ₹8,451.9 crore, consolidated net sales decreased 5.3% to ₹8,003 crore. Even more precipitously, profit before depreciation, interest, taxes, and other things (PBDIT) fell by 27.8% to ₹1,239.5 crore. Net profit, on the other hand, dropped 42.4% to ₹694.6 crore from ₹1,205.4 crore the previous year, marking the worst decline.
Price reductions from the previous year, rising raw material costs, and increased sales charges all had an adverse effect on the company’s operating margins. Although there were pricing changes this quarter, the full effect is anticipated in the second half of the year.
The business will provide each share a dividend of ₹4.25. Asian Paints’ board has recommended an interim dividend of Rs 4.25 per share for shareholders in addition to the results. Businesses distribute dividends, or a percentage of their profits, to their shareholders. On a quarterly basis, net earnings dropped 40%. At the same time, the company’s quarterly net profit decreased by 40.68% from April to June to July to September. A net profit of Rs 1,170 crore was reported by the corporation in the first quarter of the 2024–25 fiscal year.
About Asian Paints
Asian Paints operates in over 60 nations. In 1942, Asian Paints was founded. Four buddies joined forces to start it. It has held a significant market share in India’s paint industry since 1968. Asian Paints is currently active in 15 nations. Over 60 countries are served by the 27 paint manufacturing sites located throughout the world.
It works in a 50:50 joint venture with PPG Inc., a major global maker of automobile paints. The Asian Paints Group is made up of multiple businesses. Asian Paints Berger, Epco Coatings, SCIB Paints, Taubmans, Asian Paints Causeway, and Cadisco Asian Paints are a few of them that offer their services all over the world.
