Revenue for the quarter stood at ₹8,731 crore, a decline of 0.6% over the year-ago quarter. The figure was also lower than the estimate of ₹9,050 crore.
The company attributed the decline in revenue to weak demand and lower sales seen in the premium segment. Downtrading basically refers to a customer switching from expensive to cheaper alternatives.
However, managing director and CEO Amit Syngle said the company was confident of a recovery in demand with favorable monsoon forecasts.
Net profit for the quarter stood at ₹1,275 crore, which was also lower than the CNBC-TV18 poll of ₹1,370 crore.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter also missed the estimate by ₹1,950 crore, coming in at ₹1,692 crore. On an annual basis, Asian Paints recorded a 9.3% decline in EBITDA.
-EBITDA margin narrowed 170 basis points in the quarter to 19.4%, well below the 21.5% estimate.
The Coatings business in India also recorded a decline in revenue of 0.7% in the March quarter. However, the auto coatings business crossed ₹2,000 crore in revenue in FY2024.
Asian Paints’ international business saw steady growth in the Middle East and Africa markets, but remained constrained by macroeconomic headwinds in South Asia and Egypt, the company said.
Here’s how other segments performed for Asian Paints during the quarter:
- Sales from the Bath Fittings business declined 8% during the quarter to ₹88.7 crore. For the year as a whole, sales fell 16.2%.
- Kitchen company sales rose 2.8% for the quarter to ₹100.7 crore, but fell 7.5% for the full year.
- Sales of White Teak and Weatherseal increased by 33.3% to ₹47.7 crore.
Shares of Asian Paints were trading 3.5% lower at ₹2,742.55. The stock is down almost 20% so far in 2024.
