Paints behemoth Asian Paints reported a weak set of numbers for the June quarter of 2024-25 (Q1FY25). The muted performance was on account of the heatwave, elections and an unfavourable product mix.
The market leader in paints reported a 2.3 per cent year-on-year (Y-o-Y) decline in revenue and a considerable 20.2 per cent drop in earnings before interest, taxes, depreciation and amortisation (Ebitda), falling short of consensus estimates.
However, the company's domestic decorative business saw a 7 per cent increase in volumes, but a 3 per cent decline in value due to price reductions and unfavourable product mix. Meanwhile, the industrial segment recorded a 5.8 per cent growth Y-o-Y.
The company's gross margin contracted slightly to 42.5 per cent, while operating profit margin dipped to 18.9 per cent primarily due to a high base effect and lack of operating leverage. Operating costs such as staff and other expenses rose notably compared to the previous year.
Given the disappointing show, the stock fell by as much as 4.2 per cent intraday to ₹2,848. It, however, recovered a bit to end the day at ₹2,930, a loss of 1.5 per cent.
Diese Geschichte stammt aus der July 19, 2024-Ausgabe von Business Standard.
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Diese Geschichte stammt aus der July 19, 2024-Ausgabe von Business Standard.
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