Asian Paints Reports 42.4% Drop In Q2 Profit

Asian Paints has reported a sharp 42.4 per cent decline in its net profit for the July-September quarter, reflecting the challenges faced by the company in a tough demand environment. 

The paint giant’s net profit after minority interest fell to Rs 694.60 crore, down from Rs 1,205.40 crore in the same period last year.

The company attributed the significant profit drop to subdued consumer demand and adverse weather conditions, including prolonged rains and floods in several parts of the country. In addition to the profit slump, Asian Paints saw its consolidated net sales decline by 5.3 per cent, from Rs 8,451.9 crore in the second quarter of the previous fiscal year to Rs 8,003.0 crore this year.

Amit Syngle, Managing Director and CEO of Asian Paints, noted that the volumes in the domestic decorative coatings segment had declined slightly, while overall domestic coatings revenue dropped by 5.5 per cent. The company faced challenges due to muted consumer sentiments and the extended monsoon season, which adversely impacted demand in key markets.