Shares of Asian Paints on Monday tumbled over 8 per cent after the firm reported a 43.71 per cent decline in consolidated net profit to Rs 693.66 crore for the September quarter.
The stock dropped 8.18 per cent to Rs 2,542.65 apiece on the BSE. During the day, it tanked 9.47 per cent to Rs 2,507 -- the 52-week low level.
On the NSE, it slumped 8 per cent to Rs 2,547.80. Intra-day, it plunged 9.51 per cent to hit the 52-week low of Rs 2,506 per share.
The stock emerged as the biggest laggard among the BSE Sensex and NSE Nifty firms.
The company's market valuation eroded by Rs 21,735.41 crore to Rs 2,43,890.43 crore.
Asian Paints on Saturday reported a 43.71 per cent decline in consolidated net profit to Rs 693.66 crore for the September quarter, impacted by soft-demand conditions, material price inflation and a decline in the decorative and coatings business in the domestic market.
The company had logged a net profit of Rs 1,232.39 crore during the July-September period a year ago, according to a regulatory filing by Asian Paints.
Its revenue from operations was down 5.3 per cent to Rs 8,027.54 crore in the September quarter. In the year-ago period, it stood at Rs 8,478.57 crore.
"On the margin front, soft-demand conditions, product mix and material price inflation affected margins in Q2," Asian Paints said in its earnings statement.
"The paint industry faced a subdued demand environment during the quarter. Domestic decorative coatings segment volumes declined marginally while overall domestic coatings revenue declined by 5.5 per cent for the quarter impacted by muted consumer sentiments and extended rains and floods in some parts of the country," Managing Director & CEO Amit Syngle said.
Though the company took price increases during the quarter, the full impact of the same should flow through only in the second half of the year, he added.
"We expect margins to recover in the coming quarters on the back of anticipated softening in material prices coupled with price increases implemented in the last few months," Syngle said.
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