Asian Paints' strong volumes offset quarterly profit miss, shares rise (updated)

JSW Dulux

04/02/2025 09:16

(Updates with earnings details, analyst comment in paragraph 3,
and background)
       Feb 4 (Reuters) - India's Asian Paints  ASPN.NS  missed
third-quarter profit estimates on Tuesday, though
stronger-than-expected volume growth in its core domestic
decorative business lifted its shares by 5%. 
    The paintmaker's consolidated net profit during
October-December slumped 23% to 11.11 billion rupees ($127.6
million) year-on-year, slightly below analysts' average estimate
of 11.31 billion rupees, as per data compiled by LSEG.
    The 1.6% volume growth in the decorative business was higher
than our expectations of a 1% this quarter, said Antu Thomas, a
research analyst at brokerage Geojit Financial Services.
    Asian Paints, India's largest paintmaker by market share,
was among the top percentage gainers in the benchmark Nifty 50
 .NSEI .
    Shares of the company jumped 5% following the results but
pared early gains, trading up 2.5% at 2,352 rupees. 
    Revenue from operations dropped 6% to 85.49 billion rupees,
and came in below market expectations of 89.19 billion rupees. 
    Asian Paints is the first among its peers to report
quarterly results. Kansai Nerolac  KANE.NS  and Akzo Nobel India
 AKZO.NS  are slated to report their earnings later this week. 
    Over the last few quarters, Asian Paints has been grappling
with increased competition following Grasim Industries'
 GRAS.NS  entry in the sector, while inflation-strained shoppers
tightened their purse strings and opted for cheaper private
labels. 

    ($1 = 87.0550 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))