Asian Paints Q1 Profit Falls 67%

Asian Paints Ltd.'s profit slumped in the first full quarter affected by the coronavirus pandemic that froze economic activity. Net profit of India's biggest paintmaker declined 67% year-on-year to Rs 218.5 crore in the April-June period, according to an exchange filing. Its revenue, too, fell 43% over the year ago to Rs 2,923 crore, against the Rs 2,324-crore forecast. Indian consumers had cut discretionary spending even before the Covid-19 pandemic struck. And the virus outbreak shuttered all businesses, barring essential services, in April and most of May before the government eased restrictions. That crippled the demand for industrial and household paints, offsetting the benefit cheaper crude-linked raw materials. Asian Paints’ operating margin contracted to 16.5% in the first quarter from 22.7% a year ago. That’s better than the 13.5% estimated. The company’s operating profit fell 58% to Rs 484 crore, compared with the Rs 313-crore estimate.