Asian Paints’ stock fell sharply, dropping over 9 percent on November 11, following a disappointing Q2FY25 performance marked by low demand and increasing competition. At 9:20 AM, shares traded 7 percent lower at Rs 2,565. Year-to-date, the stock has underperformed with a 25 percent decline, compared to the Nifty 50’s 10 percent gain in the same period.
Asian Paints reported a decline in operating profit margins, with its profit-before-depreciation, interest, and tax (PBDIT) margin slipping to 15.5 percent in Q2FY25 from 20.3 percent last year. CEO Amit Syngle commented, “Operating margins were impacted by last year’s price reductions, higher material costs, and rising sales expenses.” Additionally, the company faced weakened consumer sentiment, contributing to slower sales growth.
Q2FY25 revenue from operations came 5.3% y-o-y lower than expected at Rs 8,003 crore and consolidated net profit fell 42.4% to Rs 694.64 crore, lower-than-estimates of around Rs 1,205 crore.
Analysts were hoping strengthening with delayed purchasing and improvement in rural markets in the second half, although sales and earnings would come under pressure in the near term.
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Source: Moneycontrol
News Desk
