Asian Paints shares slumped 9.5% to hit a fresh 52-week low of Rs 2,506. The stock price fell after the company’s net profit declined sharply by 42.4% to Rs 694.64 crore in Q2 FY25. This is primarily on the back of weak demand.
The company’s net sales stood at Rs 8,003.02 crore in Q2, down 5.3% due to persistent rains throughout the quarter and floods in some parts of the country. Also, the company’s volumes of decorative paints business (India) declined by 0.5%. Asian Paints said that its revenue was affected by price cuts taken last year, a shift in mix and increased rebates.
Asian Paints performance in Q1
The Q2 performance when seen in comparison to Q1 is also quite disappointing. Sequentially, the profit fell to Rs 1,169.98 in Q1 FY25, a drop of 24.54% on year, compared to Rs 1,550.37 crore in the year-ago period. The revenue from operations fell 2.32% to Rs 8,969.73 crore in Q1 FY25 from Rs 9,182.31 crore in the corresponding period last fiscal. Its consolidated net sales in Q1FY25 decreased by 2.3% YoY to Rs 8,943.2 crore from Rs 9,153.8 crore in Q1 FY24.
Asian Paints Vs Nifty 50
The stock of Asian Paints has fallen 12% in the last five trading sessions. The stock has erased 16% in the past one month and a bit more than 11% in the last six months. Asian Paints has declined by 25% from year to date and 17% in the last one year.
To compare, the benchmark index, Nifty 50, has risen 1% in the last five days. However, the index has fallen 3% in the past one month. Nifty 50 has increased 9.6% in the past six months. It gave a return of 12% from year to date and 25% in the last one year.