Asian Paints has posted a 42.4 per cent drop in its net profit to Rs. 694.6 crores in Q2 FY25 from Rs. 1,205.4 crores in Q2 FY24. During the quarter, the company’s net sales stood at Rs 8,003.02 crore from Rs. 8,451.9 crores, down 5.3 per cent due to weak demand owing to persistent rains through the quarter and floods in some parts of the country.

During H1 FY25, Asian Paints’ consolidated net sales decreased by 3.7 per cent to Rs. 16,946.3 crores from Rs. 17,605.7 crores. Net Profit after minority interest also decreased by 32.3 per cent to Rs. 1,864.6 crores from Rs. 2,755.8 crores.

‘’The paint industry faced a subdued demand environment during the quarter. Domestic Decorative coatings segment volumes declined marginally while overall domestic coatings revenue declined by 5.5% for the quarter impacted by muted consumer sentiments and extended rains and floods in some parts of the country.

“Operating margins were impacted by the price reductions taken last year, higher material prices and increased sales expenses. While we took price increases during the quarter, full impact of the same should flow through only in the second half of the year.

“The Industrial Business did relatively better with single digit value growth supported by growth in the General Industrial, Protective Coatings and Refinish segments. We continued to register growth in our Home Décor categories across our Beautiful Homes Stores network, introducing new collections & product solutions.

“International Business portfolio registered a marginal decline in revenues for the quarter (8.7% growth in constant currency terms) despite unfavorable market conditions in certain key markets like Ethiopia and Bangladesh.

“On the margin front, soft demand conditions, product mix and material price inflation affected margins in Q2. We expect margins to recover in the coming quarters on the back of anticipated softening in material prices coupled with price increases implemented in the last few months. While demand conditions remain challenging, we continue to direct our efforts towards leveraging our brand strength, robust supply chain and distribution network to pursue growth” said Amit Syngle, Managing Director & CEO of Asian Paints Limited.