Asian Paints' Q3 profit plunges 23.5% to Rs 1,128 crore due to weak demand in urban region

Asian Paint's consolidated profit declined by 23.5 percent in the 3rd quarter of fiscal year 2025 due to subdued demand in the urban centres. The paint giant reported Rs 1,128.43 crore of profit in Q3 FY 25 compared to Rs 1,475.16 crore in Q3 FY 24.

The revenue from sales declined by 6.09 percent to Rs 8,521.51 crore in Q3 FY 25 and the total income of the company stood at Rs 8,692.44 crore--a 5.94 percent drop.

The revenue from operations of the company was down in Q3 to Rs 8,594.44 crore.

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According to the company, the decorative business registered volume growth of 1.6% with a revenue decline of 7.8% due to muted demand conditions coupled with downtrading, and a weak festive season impacted revenue.

Bath fittings business sales rose by 2.6 percent to Rs 87.6 crore in Q3 FY 25 from Rs 85.4 crore in the corresponding quarter last fiscal. Kitchen business sales also increased by 2.7 percent to Rs 102.7 crore in Q3 FY 25.

"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. While we saw sequential improvement in operating margins, the adverse mix coupled with increased sales and distribution expenses affected operating margins on a year-on-year basis," said Amit Syngle, Managing Director & CEO of Asian Paints Limited.

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However, the company's global business saw 5 percent rise in Rupee terms in Q3s led by growth in the Middle East and recovering macro-economic conditions in key Asian markets.

"On the International side, the portfolio registered 5% growth (17.1% in constant currency terms) driven by growth in the Middle East and recovering macro-economic conditions in key Asian markets. In the near term, we remain cautiously optimistic on a recovery in demand conditions while we continue to invest in our brand and focus on innovation and customer centricity," Syngle added.

The share of Asian Paints were up 2.75 percent at 3:07 pm after the Q3 result, trading at Rs 2,355.20 apiece on Bombay Stock Exchange.