PBDIT [Profit before depreciation, interest, tax, other income, and exceptional items] (before share in profit of associates) decreased by 27.8% to Rs 1,239.5 crore in Q2 FY25 from Rs 1,716.2 crore recorded in Q2 FY24.
The PBDIT margin as a percentage of net sales decreased to 15.5%, compared to 20.3% in the same period of the previous year.
Profit before exceptional items and tax decreased by 30.99% to Rs 1,139.18 crore in Q2 FY25 as compared to Rs 1,650.94 crore reported in Q2 FY24.
The firm reported exceptional items of Rs 180.14 crore during the quarter. This amount includes an impairment provision of Rs 124 crore on 'Goodwill on Consolidation' related to White Teak, as well as a foreign exchange loss of Rs 56.1 crore associated with the company’s subsidiary in Ethiopia.
International business sales decreased marginally to Rs 769.5 crore in Q2 FY25, compared to Rs 775 crore recorded in Q2 FY24. The decline was primarily attributed to macroeconomic challenges and currency devaluation in Ethiopia, Egypt and Bangladesh. However, in constant currency terms, sales grew by 8.7%. The company reported pre-tax loss of of Rs 21.5 crore in Q2 FY25 as against profit before tax of Rs 40.4 crore in the corresponding period of previous year.
During the period under review, Bath Fittings business sales were at Rs 83.1 crore (up 2.1% YoY) while Kitchen business sales stood at Rs 105.3 crore (up 8.8% YoY).
Sales at White Teak increased by 19.2% YoY to Rs 31.1 crore in Q2 FY25. Similarly, sales at Weatherseal grew by 4.8% YoY to Rs 13.2 crore in the same quarter.
Industrial business (Asian Paints PPG) sales grew by 6% YoY to Rs 265.5 crore in Q2 FY25 from Rs 250.6 crore recoreded in Q2 FY24. Additionally, PPGAP sales increased by 5.9% YoY to Rs 524.4 crore in Q2 FY25 from Rs 495.3 crore posted in Q2 FY25.
Amit Syngle, managing director & CEO of Asian Paints, said, “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”
Asian Paints is India's leading paint company and ranked among the top eight decorative coatings companies in the world. Asian Paints is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home décor, bath fittings and providing related services.