Asian Paints Ltd - Quarterly Result Update Q4'25

Asian Paints Q4FY25: Profit dops by 45%, misses estimates; Rs 20.55 final dividend announced. Net sales (including other operating income) of Asian Paints has declined 4.26% to Rs 8358.91 crore. Operating profit margin has declined from 19.37% to 17.18%, leading to 15.09% decline in operating profit to Rs 1,436.20 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.90% to 45.67%. Purchase of finished goods cost rose from 10.77% to 11.23%. Employee cost increased from 6.97% to 7.41%. Other expenses rose from 17.15% to 18.83%. Decorative Business (India) registered volume growth of 1.8% with revenue decline of 5.2% in Q4FY’25. Muted demand conditions and consumer sentiment coupled with downtrading, and increased competitive intensity impacted revenue. Industrial Business grew 6.1% in Q4 FY’25 on the back of good growth in General Industrial and Automotive segments. Home Décor categories saw a muted performance in Q4 FY’25 with pressure on household disposable incomes. All categories in the Home Décor business benefited from synergies with our Beautiful Homes stores network, though at a lower clip than expectations. The company has taken a prudent assessment of its 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 macro-economic conditions in Africa. Key markets in Middle East and Asia did well. On a constant currency basis, the international portfolio delivered revenue growth of 6.0% for the quarter. Other income fell 46.64% to Rs 99.85 crore. PBIDT fell 18.23% to Rs 1536.05 crore. Provision for interest fell 2.42% to Rs 52.79 crore. Loan funds declined from Rs 2,474.38 crore as of 31 March 2024 to Rs 2,290.29 crore as of 31 March 2025. Inventories rose to Rs 6,719.27 crore as of 31 March 2025 from Rs 5,923.41 crore as of 31 March 2024.