ASIAN PAINTS Q1 RESULTS 2025: BOTH TOPLINE AND BOTTOM LINE FALLS

Asian Paints reported its Q1FY25 numbers on Wednesday, 17th July (market close). The numbers are below estimates but management commentary on inflation is something investors should pay attention to. Let us look at Asian Paints' June results in detail.

About Asian Paints

Asian Paints is India’s leading paint and decor company and is ranked among the top 7 coatings companies in the world. Asian Paints, along with its subsidiaries, have operations in 15 countries across the world with 27 paint manufacturing facilities, servicing consumers in over 60+ countries through Asian Paints, Apco Coatings, Asian Paints Berger, Asian Paints Causeway, SCIB Paints, Taubmans and Kadisco Asian Paints.

Crucial parameters

• PE: 53.61
• 52-week high: Rs 3,566.90
• Market Cap: Rs 2,85,303.79 crore
• ROE: 28.88

Share price movement

In the last month, Asian Paints' share price has a moderate gain of 1.70%. In the 6M period, the share performance has been below the benchmark. Asian Paints' shares have fallen by 9.50 in this period. In the last 5 years, despite negative returns in the last two years, Asian Paints has been one of the best-performing stocks. It has increased investors' wealth by 117% in this period.

How were Asian Paints Q1FY25 results?

Below are key highlights of Asian Paints Q1FY25 results:

Net Sales (Revenue): For Q1FY25, the company saw consolidated net sales decline to Rs 8,943.2 crore from Rs 9,153.8 crores, a decline of 2.3% YoY. The standalone sales were down by 2.9% and stood at Rs 7,852.5 crore.

PBDIT: Profit before depreciation, interest, tax, other income, and exceptional items] (before sharing in profit of associates) decreased by 20.2% to Rs 1,693.8 crore from Rs 2,121.3 crore.

Margins: PBDIT Margin as % to Net Sales at 18.9% from 23.2% in the corresponding period of the previous year (consolidated numbers).

Profit: The consolidated net profit after minority interest decreased by 24.5% to Rs 1,170.0 crore from Rs 1,550.4 crore. The standalone net profit decreased by 20.9% to Rs 1,192.4 crore from Rs 1,508.4 crore.

Segment Highlight

International business: Sales decreased by 2.3% to Rs 679.1 crore from Rs 695.1 crore on the back of economic uncertainty, forex crisis, and liquidity issues in key markets of Asia and Egypt. In constant currency terms, sales increased by 1.8%. PBT before exceptional items was Rs 6.5 crore as against Rs 26.5 crore in the corresponding period of the previous year.

Home Décor business:  

• i. Bath Fittings business: Sales increased by 10.3% to Rs 93.4 crore from Rs 84.7 crore. PBDIT's loss was Rs 1.4 crore against a loss of Rs 0.8 crore in the corresponding period of the previous year.   
• ii. Kitchen business: Sales increased by 4.6% to Rs 100.4 crore from Rs 96.0 crore. PBDIT was Rs 0.9 crore as against a profit of Rs 0.7 crore in the corresponding period of the previous year.   
• iii. White Teak and Weatherseal: Sales at White Teak increased by 14.3% to Rs 29.7 crore from Rs 26.0 crore. Sales at Weatherseal increased by 17.6% to Rs 11.5 crore from Rs 9.8 crore. Both these recent acquisitions are gaining from synergies with the Asian Paints network.  

Industrial business:

• i. APPPG: Sales were flat at Rs 293.2 crore from Rs 294.2 crore. PBT was Rs 29.8 crore as against Rs 39.2 crore in the corresponding period of the previous year.  
• ii. PPGAP: Sales increased by 9.6% to Rs 517.1 crore from Rs 471.9 crore. PBT was Rs 99.2 crore as against Rs 82.0 crore in the corresponding period of the previous year.

Management Commentary: "Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter. In the near term, we expect demand conditions to improve at the back of improving rural sentiment and monsoons picking up gradually." Amit Syngle, Managing Director and CEO. He further added, "One worry for the firm is inflation, and we have already taken a price increase in response to that. We are anticipating inflation of 1.5% in the upcoming quarter, and as a result, we will have to take further price increases."