MUMBAI: Paints major Asian Paints has said its consolidated net profit fell 6% on-year to Rs 1,117 crore in the June quarter due to a fall in sales amid the subdued demand and macroeconomic uncertainties.
Revenue from sales was marginally down to Rs 8,924.49 crore from Rs 8,943.24 crore a year ago, while expenses rose 1.3% to Rs 7,658.95 crore in the reporting quarter. However, its total income, which includes revenue from other sources, was flat at Rs 9,131.34 crore.
On a standalone basis, which mainly includes domestic numbers, revenue from sales was down 1.19% to Rs 7,848.83 crore.
Despite a growth in volume of 3.9% in the domestic decorative business, revenue from this segment declined 1.2%, the company said in an exchange filing Tuesday.
Managing director & chief executive Amit Syngle blamed "the subdued demand environment due to macroeconomic uncertainties and early monsoons" for overall poor numbers. For the revenue fall, he blamed the shift in the product mix.
“Home décor categories saw a de-growth with pressure on household disposable incomes," said the company. The home decor business includes the bath fittings business, kitchen business and business of two acquired brands--White Teak and Weatherseal--operating in luxury decorative lighting, uPVC windows and door systems. Asian Paints derives over 80% of its revenue from its decorative and home décor business segment.
However, sales from international business increased 8.4% to Rs 736.1 crore on the back of growth in Asian markets and Egypt.
Syngle said the paint industry saw a slight uptick in the reporting quarter, driven by marginally improved demand from urban centres, despite monsoons slowing the momentum in June. "The operating margins for the quarter were marginally lower on a year-on-year basis on account of higher sales and marketing investments," he said.
"On the international front, the portfolio delivered a strong performance with a revenue growth of 11.1% on a like-for-like basis with all key markets in the Middle East and South Asia performing well," he said.