Asian Paints Ltd recently published its earnings report for the fiscal fourth quarter, revealing a profit of ₹692.13 crore. This figure represents a significant 44.93% decline compared to ₹1,256.72 crore from the same quarter in FY24. Additionally, the company reported revenue from operations of ₹8,329.59 crore, which marks a 4.27% decrease from ₹8,701.46 crore in the previous year’s fourth quarter.
Earnings Report Overview
Analysts had anticipated a stronger performance, with a CNBC TV18 poll predicting a profit of ₹1,105 crore and revenue expectations of ₹8,675 crore for Q4. However, Asian Paints fell short of these estimates, sparking discussions about the company’s current market challenges.
- Standalone Profit: ₹700.8 crore
- Standalone Revenue: ₹8,359 crore
Yearly Performance Insights
For the full fiscal year, the company’s consolidated net sales dropped by 4.5%, totaling ₹33,797.4 crore down from ₹35,382.1 crore in FY24. Furthermore, the Profit Before Depreciation, Interest, and Taxes (PBDIT) saw a stark 20.8% decline, amounting to ₹6,006.2 crore.
Amit Syngle, Managing Director & CEO of Asian Paints, commented on the ongoing challenges, stating, “The weak demand conditions that have persisted over several quarters continued to affect the paint industry in the last quarter of the financial year. While the domestic decorative segment saw a 1.8% volume growth, standalone revenues fell by 5%. The overall lower revenues and adverse mix negatively impacted operating margins on a year-on-year basis, although the industrial business showed a more promising 6.1% growth.”
Dividend Declaration
In a move to reward shareholders, Asian Paints’ board has proposed a final dividend of ₹20.55 per equity share for the fiscal year ending March 31, 2025. This brings the total dividend for FY25 to ₹24.80 per equity share, which includes an interim dividend of ₹4.25 already approved at a prior board meeting.
- Record Date for Dividend: June 10, 2025
- Payment Date for Approved Dividend: On or after June 30, 2025
Business Segment Performance
International Business
- Q4 FY25 sales dipped by 1.5% to ₹799.7 crore due to currency issues in Ethiopia and Egypt, alongside economic challenges in Bangladesh. However, in constant currency, sales rose by 6%. For FY25, sales remained stable, with a slight increase of 0.2% to ₹3,066.4 crore.
Home Décor Sector
- Bath Fittings: Sales rose by 3.7% to ₹91.9 crore in Q4, while the full-year sales increased by 4.7% to ₹356.1 crore.
- Kitchen Business: Experienced a 15.5% drop in Q4 sales to ₹85.1 crore, reflecting a challenging landscape.
- White Teak and Weatherseal: White Teak saw a 57.9% decline in Q4 sales to ₹20.1 crore, while Weatherseal grew by 3.4% to ₹16.2 crore.
Industrial Business
- APPPG: Q4 sales increased by 10.8% to ₹347.1 crore, although PBT fell to ₹28.9 crore for the quarter.
- PPGAP: Posted a 2.9% sales increase to ₹484.9 crore, with a PBT of ₹58.6 crore for Q4.
Future Outlook
Despite the challenging economic landscape, Amit Syngle expressed cautious optimism, stating, “While the overall macroeconomic environment remains uncertain, we are hopeful for a recovery in demand conditions. We are committed to leveraging our brand strength and improving operational efficiencies to foster growth.”
In conclusion, while Asian Paints faces significant headwinds, their strategic focus on operational excellence and market adaptability may pave the way for recovery in the coming quarters.
