Asian Paints blames slow car production for fall in sales⁠— and that pain is far from over

• Asian Paints reported around 1.8% fall in its consolidated net profit to ₹480.25 crore for the fourth quarter ended March 31.
• The total revenue was down 7.1% year-on-year to ₹4,635.59 crore during the period.
• Along with the coronavirus crisis, the prolonged monsoons and floods in different states impacted decorative paints adding to woes of the paint maker.
• “The Industrial business segment under the automotive coatings and industrial coatings continued to be impacted by the downturn in the automotive industry and the overall slowdown in the economy,” Syngle said.

India’s largest multinational paint company Asian Paints reported around 1.8% fall in its consolidated net profit to ₹480.25 crore for the fourth quarter ended March 31. The company shares were up nearly a percent ahead of the earnings.

The total revenue was down 7.1% year-on-year to ₹4,635.59 crore during the period, the company said. Analysts at Edelweiss had expected its fourth-quarter revenue to fall somewhere around 8%.

“Loss of sales due to the lockdown in March impacted the decorative business segment in an otherwise strong quarter with double-digit volume growth in the first two months of the quarter. Even with the loss of sales, the decorative business segment in a tough year has registered double-digit volume growth for the year and strong profit numbers,” said Amit Syngle, managing director & CEO, Asian Paints Limited.
The company was also largely impacted by the slowdown in the auto industry. “The Industrial business segment under the automotive coatings and industrial coatings continued to be impacted by the downturn in the automotive industry and the overall slowdown in the economy,” he added.

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