Asian Paints Shares Plummet Amid Decline in Q1 Profit

Shares of Asian Paints Ltd plunged by over 4% following the company's announcement of a 24.64% drop in consolidated net profit for the June quarter. The company cited demand slowdown due to severe heatwave and general elections as primary reasons for the decline.

Shares of Asian Paints Ltd dropped over 4 per cent in morning trade on Thursday after the company reported a 24.64 per cent decline in consolidated net profit in the June quarter.

The stock went lower by 4.24 per cent to Rs 2,848.15 on the BSE.

At the NSE, it dropped 4.45 per cent to Rs 2,842 apiece.

The stock emerged as the biggest laggard among the Sensex pack.

Asian Paints Ltd on Wednesday reported a 24.64 per cent decline in consolidated net profit to Rs 1,186.79 crore in the June quarter, hit by demand slowdown due to severe heatwave and general elections.

The company had posted a consolidated net profit of Rs 1,574.84 crore in the same period last fiscal year, Asian Paints said in a regulatory filing.

Consolidated revenue from operations in the first quarter of the current fiscal was down at Rs 8,969.73 crore, as compared to Rs 9,182.31 crore in the year-ago period, it added.

Total expenses were higher at Rs 7,559.04 crore, up from 7,305.09 crore in the corresponding period of the last fiscal.

''Demand conditions for the paint industry were tough, impacted by the severe heatwave and general elections in the quarter,'' Asian Paints Ltd Managing Director & CEO Amit Syngle said.

(With inputs from agencies.)