Asian Paints Q4 results: Net profit falls 45%, EBITDA declines 15%; company announces dividend of ₹20.55/share

Asian Paints, the country's largest paint maker, on Thursday, May 8, reported a net profit of ₹692 crore for the January-March quarter (Q4 FY25), marking a decline of 45% from ₹1,257 crore profit logged in the same period last year. The decline in profit came on the back of a one-time (exceptional item) cost of ₹183 crore it incurred in the fourth quarter of financial year 2024-25.

“Exceptional item of ₹183 crores is an aggregate representing impairment loss of ₹77.8 crores on 'Goodwill on Consolidation' and other intangible assets recognised on White Teak, impairment loss of ₹21.5 crores on 'Goodwill on Consolidation' recognised on acquisition of Causeway Paints, Sri Lanka, and loss on disposal of ₹83.7 crore in PT Asian Paints Indonesia & PT Asian Paints Colour Indonesia,” Asian Paints said in a press release.

The company's revenue declined 4% to ₹8,329.59 crore in Q4 as against ₹8,701 crore in the year-ago period.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA), also known as operating profit, declined 15% to ₹1,406.88 crore from ₹ 1,662.07 crore in the year-ago period.

Its EBITDA margin contracted by 210 basis points to 17% from 19.10%.

The company announced final dividend of ₹20.55 per share.

Operational highlights

Decorative business in India registered volume growth of 1.8% with revenue decline of 5.2% in Q4 FY25 on the back of muted demand conditions and consumer sentiment coupled with downtrading, and increased competitive intensity impacted revenue, Asian Paints said.

Its industrial business rose 6.1% in Q4 FY25 on the back of good growth in general industrial and automotive segments.

While home décor categories saw a muted performance in Q4 FY25 with pressure on household disposable incomes. All categories in the home décor business benefitted from synergies with our Beautiful Homes stores network, though at a lower clip than expectations.

“We have taken a prudent assessment of our investments in White Teak and taken an impairment loss in the investment value during the quarter. International business registered a value decline of 1.5% with headwinds from challenging macroeconomic conditions in Africa. Key markets in the Middle East and Asia did well. On a constant currency basis, the international portfolio delivered revenue growth of 6.0% for the quarter,” the Mumbai-based company said.

“The weak demand conditions prevalent for the past few quarters continued to affect the paint industry even in the last quarter of the financial year. The demand for decorative coatings was only marginally better than in the third quarter. The domestic decorative business registered a volume growth of 1.8%, but standalone revenues declined by 5%. The adverse mix and overall lower revenues impacted the quarter’s operating margins on a year-on-year basis,” said Amit Syngle, Managing Director & CEO of Asian Paints Limited.

“The industrial business fared relatively better, growing by 6.1%, aided by growth in the general industrial and automotive coatings segments. Overall, revenues from the coatings business in India declined by 4.1% in the quarter. Our home décor business faced multiple headwinds, resulting in a muted performance for the quarter," the MD said.

In the international portfolio, revenues declined by 1.5% (6% revenue growth in constant currency terms). Key markets in the Middle East and Asia performed well, while markets in Africa faced macroeconomic challenges.

"While the overall macroeconomic environment remains uncertain, we are cautiously optimistic about a recovery in demand conditions and continue to work diligently on leveraging our brand strength and driving operational efficiencies to pursue growth," Syngle added.

Following its earnings announcement, Asian Paints shares traded 1.25% lower at ₹2,303 apiece on the BSE.