New Delhi: In the June quarter, Asian Paints Ltd's consolidated net profit dropped by 24.64 pc to Rs 1,186.79 crore due to reduced demand from a severe heatwave and general elections. In a regulatory filing, Asian Paints stated that the company had reported a consolidated net profit of Rs 1,574.84 crore in the corresponding period of the previous fiscal year.
It was mentioned that the consolidated revenue from operations in the first quarter of the current fiscal decreased to Rs 8,969.73 crore from Rs 9,182.31 crore in the previous year. The overall costs increased to Rs 7,559.04 crore from Rs 7,305.09 crore in the same period of the previous financial year.
Asian Paints Ltd Managing Director & CEO Amit Syngle mentioned that the paint industry faced difficult demand conditions due to the severe heatwave and general elections in the quarter. Even though there was a 7 per cent increase in sales volume in the decorative segment, mainly driven by growth in rural markets, the company's overall worth decreased by 3 per cent because of price cuts made earlier in the year and changes in the product assortment, he explained.
Syngle explained that unexpected increases in material prices and supply chain issues affected the profitability of the decorative business in the quarter. However, he noted that the industrial business performed relatively well, with a 5.8 pc increase in value driven by strong growth in the auto OEM and powder coatings segments.
Regarding the global scenario, he mentioned that countries such as Ethiopia and Sri Lanka showed strong growth in the initial three months due to the slow economic improvement in those regions. Nevertheless, significant macroeconomic challenges remained present in countries such as Nepal, Bangladesh, and Egypt, affecting the global business performance. Syngle stated that in the short term, they anticipate an improvement in demand due to the positive rural sentiment.
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