Friends, let's read the results of Asian Paints investor conference second quarter FY25, that is, the complete investor presentation in which you will get all the data of the second quarter FY2025, you will get the plans for the future, what are the results, how much revenue, how much EBITDA, you will get all the details in it. When we get to know, we will understand each step in many ways, friends, so that we can know its future, that if we invest money in it, then at what speed our money can grow and if it is working for its future.
Now, the things that has come is the Subdued Demand Condition impacting Volume, Previous Year Reduction, Shift in Mix and Higher Rebates Affecting Value. What is this? How much value of the company has come in decorative business? How much volume has come if we compare it quarter wise and if half yearly wise? If we compare, the data is given here to see how much value and volume has come. So friends, you will see the second quarter of FY25 from dark blue and the second quarter of FY24 from light blue. If we look at the volume from FY24 to FY25, the volume has come in negative. Earlier the volume in FY24's second quarter was at 6, but the overall volume has now come negative in FY25. We will also know the reason for this in this presentation for why this has happened? and if we look at the CGR of the last 5 years i.e. Compound Annual Growth Rate, then the company is increasing volume wise at a Compound Annual Growth Rate of 11.5%. Similarly if we look at the value of the company, then in the second quarter of 2024, but if we look at this latest quarter, friends, the value of the company has come at -6.7% and the value is given in GR, that means the growth rate, that is, the growth rate of the value of the company has now come in negative for this quarter.
But if we look at the 5-year CAGR, i.e. Compound Annual Growth Rate, then, in 5 years the value of the company is growing at the rate of 10.1%. Similarly, they have given the data of Half Yearly just below it. First half of FY25 is given in dark blue and first half of FY24 in light blue. So the volume has decreased but it has not come in negative. If we see the half, it was at 8% and due to the growth rate of 3.3%, the volume has decreased a bit and if we compare the 5 year half year data, the CAGR is coming out to be 13.4% and if we see the value in the same way, then the value has gone into negative, friends, the half year data has also gone into negative, but if we see the 5 year data, then according to 11.4% Growth has been shown to be less.
In the next slide, the entire volume and value of decorative plus industrial paint is relatively better growth in industrial business. Better growth has been seen in relation to the industrial business. Friends, let's see, the volume has increased in the previous quarter and now in the current quarter.
Earlier the growth at 6% has now come flat, absolutely, the volume and value have come in negative, earlier the value was at 1.1 in the last quarter and in the second quarter of fy2, the value has come out to be minus 1.5, i.e. the value of growth rate but if for 5 years If we look at the data of the company, it has grown at a CAGR of 11.4% and if we look at the value data as per 10.3%, similarly, the volume has come positive in the half, friends, it was at 8%, it has halved and is at 4%, but the value It is still in the negative, if we compare the entire half, it was at 4.8% and now it has come out to be 3.8. And if we look at the same thing for 5 years, a growth rate of 13.2% has been shown in the value, half dollar wise and growth of 11.5 has been shown in the value. Decorative plus industries wise, both things in paint and decorative business are in negative so far friends, in the next slide the company has reported weak second quarter leading to softening of double digit trajectory in five years, compound volume growth so this quarter has completely doubled Digit's growth has been softened a bit, that is, it has been brought down and they have also given the data, see it has been compared with the third quarter of FY 22, after that in the first quarter of FY 23 it was at 19 The growth was 16.5 in the next quarter, 16.8 in the next quarter and 15.4 in the next quarter, which means the lowest growth till date is being witnessed this time. Friends, the compound volume growth rate in the second quarter of FY25 is only 11.5% so far.
So in the year 2023 also, that is, it was at 19%, the lowest till date in the last 5 years, this time it has come the lowest, now the company has told about its performance driver, each and every thing has been explained, friends, it should be like this Why is it so? In the very first point, the company has mentioned weak consumer sentiments impacting demand in the second quarter.
So consumer sentiments itself are weak, the entire demand has been impacted, first affected by the extended monsoon, this time the monsoon got extended a bit longer, due to which our There has been an impact on the results. The company has told us these things till now. Below that it is mentioned that urban centers are seeing stress, that is, some stress has been seen in the urban centers, hence the performance is down. The performance in rural areas is relatively better. Urban centers where there is a lot, that is the basic meaning of urban, friends, wherever the population is dense, that is, high population, many buildings, many businesses, that becomes an urban area. Rural areas where there is less population, rural areas are small. Small towns are called rural areas, so the performance has been better in rural areas but stress has been seen in urban areas. This time the seasonal market impact is more in this quarter. The impact of seasonal market is very much visible in this quarter. Below mentioned is the expanded retail footprint reach continues to expand over 167000 retail so friends the retail footprints have grown and expanded by how much 167000 below that mentioned is continued scale up for our beautiful homes painting services and trust contractor service so that Businesses are scaling up Home Painted Services Co and Trust Contractor Services Co are scaling up a little bit Continued traction in demand for the Profession is free service now friends on the right side the company has told that project and institutional business did well with good growth in factories and building segment so the project and institutional business has done well in which good growth is seen in factories and builder segment the pace of growth that has been got was slower compared to the past trajectory but the pace of growth has slowed down with the past trajectory if we compare the construction government sector much slower so construction has become very slow if we compare it with the past and the government The sector has also seen a slowdown. In the next point it is mentioned that Reman is focused on product innovation.
New products contributed to about 12 per cent of overall revenue. So the company is working on new product innovation and the company is saying that there i.e. new products which are new The contribution of the product is that 12 per cent revenue from there they have provided the overall, in the next point it is mentioned that most of the brown field expansion project is now complete brown field Friends, the meaning of expansion is that basically brown field means that if the company wants to expand, then it has some things like land, at-least it has to build a building on it or build its own factory and start work there. You have to start, brown field is that, green field is that you start from absolutely zero, so some of their brown field expansion projects which the company had done, their projects have been completed, in the same it is further mentioned, backward integration project and MDV AE and White Cement On track, so friends, let's find out what VM and VAE are VM is vinyl acetate monomer. This is basically the chemical composition of paint, friends, which is used in making paint. VAE is vinyl acetate ethylene emission emulsion. So you should know You must have understood what is WE, what is VM and along with this white cement is on track, which means all these projects are on track and are working on them, so whatever innovation the company has done in the next slide, friends Isn't it true that in their packs, that is, in the packing of the boxes, friends, they have done an innovation in it. What innovation have they done is that according to different states, they have used the coloring of the thing that is most famous in that state on the packing of their boxes. So what happens with that is that an attraction increases that the main sign of our state is visible at the main places and then an attraction increases in the customer, so an attempt has been made to get that attraction and you must be seeing it as well friends Look, he has given a design of Maharashtra, a design of Kerala, a design of Gujarat and in the next slide, he has launched three different ranges, one is the Royal range, the premium range is good for those who want to buy a very royal type of paint.
And after that, the economic range also has different ranges and different styles, they have done a lot of work in the packaging so that the customer does not get confused and the attraction also increases a bit because basically these companies play with the mind of the people, friends, because if If you attract someone, then your product will definitely be there somewhere, so the company's complete focus is on that Even now and in the next slide I have told friends that the packing has been changed by Smart Care, firstly look at the different packing of exterior water proofing and interior water proofing, they have shown it and in the next slide they have told about advanced range standing the proportion i.e. your The proportions have been increased that is the range has been increased so much that if you don't want to buy this pack then buy this one, that means now the company has put many more options in front of the customer through which in the next slide the company has explained its The new range that has been launched has been introduced. This is the latest paint range that the company has launched. In that, we have added the Sign Advance range. Ultima Protect Advance. Under that, we have launched the Glitch Reverse range. Color Ideas Plus HP product is also included in that. -Along with this, soft shade and exclusive shades have been provided.
So this is a new range that the company has added to its products. In the next slide, the company told friends about Integrated Story Standing Product Performance, that is, to increase the performance of the product. Let's see what the company is doing Build Premium Imaginary for B brand Dial on Graphene Integrated Story means a new brand has been launched in which Graphene color has been provided by the company, its next image shows Alma Powered by PU Serum, that is, what is PU Serum, friends, this is a kind of palette, friends Exterior is a serum, what it does is it protects against UV rays as well, which means if you get that serum painted on your wall, then it will protect your entire wall from UV rays and it will protect you as well and thirdly they have launched a premium Category powered by no block technology so basically friends it protects from dust, soil, water, rain etc.
In the next slide, they have mentioned about world's largest repository of color exclusively for architectural and interior applications so Croz Chroma Kazam is also a brand of Asian Paints friends and they Told that we have 5300 plus unique shades, 2300 new shades have been introduced. The company told on the right side that there are 264 white shades, they have 528 natural shades i.e. 4312 There are 4312 hue spectrum shades and 262 are mélange layered shades, that means friends, it has been told in the next slide that the company is doing a very good job for future of water proofing, what new things they have brought out, they have told about that in single slide. Compound PU friends what is PU, once you know what PU is basically, what PU is, poly urethral disperse which is also called PU friends, is basically a water bone poly urethral system, what it does is that even the very small droplets are not allowed to penetrate the wall If it gives a compound then there will be no cracks in the wall and the paint itself will be able to survive for a long time. So this is a new compound that has been launched by a company which is giving a guarantee that it has a warranty of 25 years, a lifetime warranty. And piece up to 25 years water proofing warranty for dress and in this mentioned high doubling strong coating with best in class crack busting abilities, which means now the cracks which used to appear on the walls will not appear even after painting Excellent puncture resistant and tensile strength, so what will it do is it will not let the puncture happen and will also improve its strength, that is, it will also improve the strength of the wall, now friends, let's come to the main point because we have to know about the company How is the performance and how is the performance of the products, let's study this slide, Enhance Kolben with Our Beautiful Homes Network, within that they have given different revenues for their different products and this is what we want to know, look inside kitchen and bath They have shown the revenue of the kitchen. Talking about the new, they have shown it through dark blue. They have shown the second quarter of FY 25 and through light blue they have shown the first half of FY 25. So, if we look at the revenue of Friends Kitchen quarterly, then there has been a growth of 9%. If we look at the half yearly wise, there has been a growth of 7 per cent. If we look at the later revenue, quarterly, there has been a growth of only 2 per cent. And if we look at the half yearly wise, a growth of 6 per cent has been seen. Similarly on the right side I am White Teak and Weather Seal, so White Teak, friends, this is a company, WTA was formed with Ash Paint, so the mixed revenue came from that, let's see it quarterly, there has been a growth of 19, friends, if we see it half-yearly, There has been a growth of 17 per cent. If we look at the revenue of Weather Seal, if we look at it quarterly, there has been a growth of only 5 per cent, but if we look at it half-yearly, there has been a growth of 10 per cent. Now, they have explained their thing below. It is important for friends to study it. There is good top line growth in the second quarter of PVT, that is, profit before tax loss of Rs 4.9 crore in Q2 versus loss of Rs 2.6 crore in last year. So friends, the loss in profit before tax is increasing continuously. Last year it was Rs 2.6 crore. of has increased to Rs. 4.9 crores after that top margin is marginally better than last year PBT loss was Rs. 6.7 crores in second quarter which was earlier loss of Rs. 3.1 crores in last year now shown on right side There is growth within Whitey for extended product, office solutions, expanded reach and synergies for beautiful homes. Now, friends, in the next slide, I have told you about our new collections of wall coverings, rugs, furnishings and fabrics in collaboration with several European designers. So, in collaboration with several European designers, I have The company is doing new work for decorating the home like curtains, cushion covers, bedsheets etc. In the next slide, friends, I have told you in which all places the company's international business is spread, i.e. where all International is also spread and numbering has been given in them, friends, and the name of the company is also given according to the name, so you guys can see it in Egypt, in Brahim, in Qatar, in UAE, in Sri Lanka, in Ethiopia The company is spread in Nepal, Bangladesh, Indonesia, Solomon Island, Vanua, Fiji and Samoa. So, it has spread a lot friends but looking at the revenue and growth till now, it seems a bit fishy. If we study it more, You will understand more things. Macro economic challenge constraint profitability is included in the next slide. Friends, you will get to know everything here.
See how much is the overall revenue of AP Global, i.e. Asian Paints Global, in negative. Friends, the quarter is indicated in dark blue. Half has been told by Light Blue, so in the quarter it is at negative 1, which means it has come negative at 1 and in the half also the overall revenue has come down by 1, friends, but in Africa also friends there is a loss of -22 But the revenue has come down and if we look at the half-yearly, the revenue has come negative at 15, the revenue has increased slightly in Africa and in the Middle East, friends, thankfully, an increase was seen somewhere at 19 and 10, that is, in the half-yearly it was at 10 and Revenue in Asia increased by 19% in the quarter. So friends, the revenue in Asia has come negative at minus 2% in the quarter and in the South Pacific it has increased by minus 5% in the half year, but only a little growth is seen at 3% and 4% has got quarter and half PBT has come down i.e. That profit before taxes, so dark blue is showing the second quarter and light blue is showing the first half of f25 and things are the same friends AP i.e. Asian Paints globally overall profit before taxes has come in negative at 21 and negative at 15 In Africa - 34 and -10 in both the quarter and the half, the profit in the Middle East has been quite good and very impressive friends, at 260% and 92%. The company is doing very well in the Middle East, friends, the company is failing in all other areas in Asia. Profit before taxes came negative at 6 in the quarter and 26 crores came in negative half. Now inside South Pacific also, friends, profit before taxes has been seen in negative at minus 14 and minus 17 on the right side.
Let's study the second growth in IR term was largely flat how ever a strong 78.7 per cent growth in constant currency term is further impacted by currency devaluation in In Ethiopia, he has said that the reason for the negative growth in Ethiopia is that the currency has devalued, its impact has been felt.
The Middle East region has reported strong double digit growth, and the muted performance in Asia has been the best, he talked about that. That here double digit growth has come but overall the situation is bad friends, below that it is mentioned muted performance in Asia, do n't even ask friends their situation is bad, below that it is mentioned D growth in Bangladesh on the back of political unrest And there were many floods in Bangladesh and the political parties had made the situation very bad, you all know that the entire news of Bangladesh was spread and a very bad situation was shown there, de-growth was seen, improved performance was seen in Sri Lanka etc. In Nepal, their performance has shown a slight improvement. The next point is that we are talking about focus on pre- luxe and waterproofing category supporting growth across units.
So these are the two products on which they are focusing and This is also supporting their growth Forex loss on currency devaluation 56 crores in Ethiopia along with subdued performance in Asia impact overall profitability So friends, are you making this excuse of currency devaluation or what are you doing, let's see, we will study more about it But due to currency devaluation, they have suffered a loss of 56 crores in Ethiopia and along with all duty performance, i.e. in Asia, the performance has been poor, so due to this, it is being said that the overall performance and overall profitability has decreased completely. The company and this means that friends, numbers tell everything about the company, so the numbers have told that the condition is bad, whatever may be the reason, right now the condition is bad, now friends, let's see how the company is doing in the industrial business The performance of the industrial business is bringing up our revenue in the second quarter. So friends, with whom is this business? One is PPG AP, that is, paint and coating manufacturing company, PPG, which is from the US. Friends, this is a company, it had a joint venture with Asian Paints, so together they formed PPG AP, that is, after the joint venture of these two, this company was formed, if we look at the revenue and PBT, profit before taxes, then both have increased and A good growth has been seen in the revenue quarter wise. Dark blue candle is a light blue candle. So quarter wise a growth of 6% has been seen in the revenue and a growth of 8% has been seen in the half LD. Similarly PBT profit Before taxes, it has seen a growth of 7%, out of which quarter wise, a growth of 14% has been seen, on a quarterly basis AP PPG has come below it, so friends, this PPG is Asian Paints PPG Private Limited Company, friends, this is a leader company. It is a leader player, that is, it makes all kinds of coatings like protective coating, powder coating, floor coating, road making coating, so it is a leader company in that work, it also has a joint venture with Asian Paints, so how did it perform from there Let's take a look at it once Growth has been seen in its revenue, friends, quarterly as well as half- yearly growth was at 6, half-yearly growth was at 3 but in PBT which is profit before taxes, it has been seen at minus 35, and in the other half it was at 29.
Negativity has been seen and this negativity is in comparison to the previous quarters and the previous half, friends, so at some places it is coming out well, at some places it is coming out a little negative, but friends, coming out negative does not mean that If the company sinks, do not be under the illusion that this company will not move ahead, it will not perform well on the charts, this is not the case friends, some quarters and some halves of every company go very weak, very bad and he also told the reason that one is the monsoon On top of that, there was inflation in some big cities, so the entire amount of money got messed up and you know, a big scandal happened in Bangladesh too, so because of that, there was a lot of mess in the revenue from there too, and the areas around it Problems arose from their plants as well, hence the overall performance If that company's fortune has deteriorated, it is not the case that if you invest money at this time, your money will sink, friends, money does not sink in such companies, this is a Nifty top 100 company and it is not a small company, friends, by now you You have read that this is not a small company but a very strong company, now friends, material price inflation coupled with previous price reduction and increased rebates have impacted growth margin, so there has been an impact on gross margin, friends, basically what is gross margin, if we know about it then The company is also getting revenue, if we take out the cost of selling a product from it and divide it by the revenue, that is, if we divide it to find out its percentage wise, then what will come out, gross margin will come out Friends, he has given the complete graph of how much percent the company is earning as gross margin and before that he has written that the benefits of price increase taken in the second quarter of this year will flow through.
Largely in the second half, this thing has been shown in the graph. See, it has started from the second quarter of FY23 and see the candle in light blue and this time the candle of the second quarter FY25 is shown in dark blue. See the second quarter. Of FY23 i.e. the previous quarter, the gross margin was 35.6 per cent and a bracket has been drawn above it, a box has been drawn inside which it is written that material inflation was 2 per cent and price increase was 1 per cent and that's it. If we look at the second quarter of FY25, the gross margin has increased friends, it came to 41.1 and material inflation has happened by 1.5% earlier than 2% and the prices have increased by 1.2%, so what will happen with that, the company will benefit in the gross margin because the prices have increased If we compare things with the last three quarters, that is, the margin in the fourth quarter of FY24 was 44.4%, so the margin has been decreasing since the last three quarters, but if we If we compare it with the previous quarter, it has increased.
Now the company has given a complete summary of the stand-alone financials. Stand-alone means how have the financials of their core business come this time and every single thing has been explained, see the net sales light. The blue candle is indicating the quarter, the dark blue candle is indicating the second quarter, the light blue candle of 25 is indicating the quarter of 24, so the net sales have decreased friends, how much has it decreased, negativity of 6% has been seen in the net sales and This is stand alone data, gross margin has decreased friends, in this second quarter of F25, gross margin has decreased to 12, look at PBDIT, it has also decreased friends, negativity has been seen in it as well, PBT profit before taxes at 29 That too has come to 32 but PAT profit after taxes has also come down, so if we see quarter wise, everything has come in negative, if we compare it with the previous quarter, they have explained the same thing a little on the right side about net sales.
How much has the de-growth happened at 6? It has been impacted by all due to demand and price reduction. So, the demand also decreased and the price also reduced, therefore the sales at 6 decreased. In the next point, we have talked about the gross margin at 41.1 which we have just discussed. You can see in the slide above that in the second quarter, there has been a decline of 280 basis points over the second quarter of last year. The price decreases taken in the second half of last year give them the price which they had paid in the second half of last year, they had to pay that price and What happened is that there was a decline of 280 paise basis point in the gross margin if we compare it with last year's quarter.
It is further written in this that product mix and material if there is inflation in the current year, then in this current year there was inflation in the material. And whatever revenue came from the product mis came out, it was not good, after that we talked about A VITED i.e. earning sorry P BT ID i.e. profit before depreciation interest and taxes margin At 16.4, which is 530 basis points lower than the second quarter of last year, it is 530 basis points lower than the second quarter of last year. In this, it was further mentioned that higher employment cost, so employment cost has increased, increase sales expenses, so what happened to the sales because of that Expenses have increased, the company told the reason for everything, friends, but this quarter some negativity has been seen, now this is what they have shown in Half Valley, friends, how has been the performance of the company half wise, so friends, half LD is the candle of 2024 Light blue and half LD 2025 candle is dark blue and you can see negativity in everything, sales is negative, gross margin is negative, PBDIT is negative, PBT is negative friends and Put is also negative, now what they have given on the right side Let us study it and see that the net sales growth has been 5%, that is, a decline of 5% has been observed in the gross margin in net sales. 42.1% in the first half, which is 155 basis points lower. Friends, this is 100 to 155 basis points lower than what it came in the first half of last year. After that, it is told how much the PBDIT i.e. Profit Before Depreciation Interest and Margin has come. 18.5 and this is 480 basis points lower if we compare it with the first half of last year and further it is written in this that 450 basis points lower includes one time impact in quarter one last year, so it is told friends that 450 basis points which was in the first quarter
This time the PBDIT margin has come 450 basis points lower than last year. Now in the next slide, the summary of the entire consolidated financials has been given, that is, all their businesses combined, till now we were talking about them as stand-alone. That is, the core business of the company, now if we look at the consolidated business, then almost everything in Friends Consolidated is negative. Friends, sales is negative at 5, gross margin is negative at 11, PBDIT is negative at 28, PBT is negative at 31 and PAT is negative at 44. Let us study the right side once. Net sales growth has been seen at 5 per cent. Given within the net sales Substitute growth in domestic decorative segment re relatively better performance in industrial segment, so he is saying that slightly better performance has been seen in the industrial segment, rest of the net sales have seen growth of 5 per cent, i.e. negativity has been seen.
Gross margin has come at 40.6 in the second quarter, which is 260 basis points less if we compare it with the second quarter. If we talk about last year's PBDIT, its margin has come at 15.5, how much has it come, it has come down by 480 basis points, if we compare Do the second quarter from last year and the reason given is due to operating deal averaging, so friends what is de leveraging, that is the process of reducing the depth The process of doing this is called de-leveraging because leverage itself means liability, that is, giving, that is, loan, so in this process, the PBDIT margin of the company has come down because they had to repay the loan, so we will study about that as well, as the company's What is the pass net depth right now, but for now, he gave this reason that the PBD ID margin has come down because if we compare half-way, then things are negative in this as well, friends, net sale is negative at 4, gross margin at 7, PBDIT minus K 24 But it has come down from the last quarter and the last half, sorry PVT has come down to 27 from the last half and PAT has come down to minus 33 from the last half, if we compare and study the net sales on the right side, then within the net sales D growth has been seen at 4. What is the gross margin of 41.5 in the first half, which is 140 basis points less, friends, if we compare last year's PBDIT margin with the first half This time we have come at 17.3% which is 450 basis points less if we compare the first half with last year and if we compare the first quarter with last year, then we have earned 430 basis points. Now friends, here comes the exceptional item on K2 financials. Whatever exceptional items were there in the second quarter financials, they have been discussed. White Teak and Weather Seal have been impaired. Impairment means friends, the current market value of these and the value of their balance sheet, i.e. balance There is some value of the company's products inside the sheet, so if its market value becomes less than the value of its balance sheet, then it is called impairment as per financial terms.
Now read it carefully and understand that both these products As these are products of Ash Paints, impairment has been observed in them. They have explained this by considering the past performance and revised business plan and are saying that we have considered our past performance. And we have revised our business plan again. We have taken prudent assignment for our investment in white teak and weather seal which has resulted in this.
So they have done some assessment of both these products. They have talked about standalone and consolidated. If it is under stand alone, then it means that if we have talked only about White Teak and Weather Seal stand alone, then in terms of impairment provision on investment and subsidiaries, the company had invested Rs 100. 5 crore recognized on Weather Seal and White Teak and of Rs 99.3 crore Towards fair valuation loss in on derivative contract for future stake purchase in White Streak, which was the company's stake at 40 per cent and in Seal, the company's stake was at 23.9 per cent. Respectively, friends, it is being told that the market value given by the company was Rs 100.5 crore.
The fair value i.e. the value on the balance sheet is coming out. 99.3 crores, so what happened? There has been impairment of the market value, that is, the market value has decreased as compared to its book value. Now this is what they have stated in the consolidated that if we look at the combined financials, what has been seen in it is the impairment provision on Goodwill on consolidated of 12.24 crores recognized on white teak. So, impairment of ₹1 crore has been observed in white teak. Friends, in the next point, it has been mentioned in addition in consolidated financials. See what is basically mentioned in it. See, there was forest loss in Ethiopia. What happened inside Ethiopia, the entire currency got devalued, so they have suffered a huge loss in Ethiopia, I have talked about it in this, friends, they have told about significant currency devaluation in Ethiopia, what happened inside Ethiopia, the currency got devalued during the quarter was resulted in recognizing Recognizes of an expense of Rs 56 crore towards exchange loss arising on foreign currency obligations of our subsidiary in Ethiopia. So, they have suffered an exchange loss of Rs 56 crore inside Ethiopia. Friends, the same has been disclosed as an exceptional item.
The same thing has been disclosed on their exceptional item also. It was seen that they have faced problem in these two products, in white teak and in weather seal and in Ethiopia, so friends it is not their fault, the entire currency got devalued, so everything got messed up here, so right now So all these problems are going on inside the company but friends it is not like the company will sink because of all these things, the plant is still there, work is still going on, productivity is happening and you read inside the balance sheet i.e. inside the presentation that The company is launching new products, coloring them well, paying attention to packaging and has launched so many product ranges So that the customer does not go anywhere else because basically they have to deliver their goods to the consumer, so to attract the consumer they are doing new things, they are introducing new products and new ranges, so the work is The company is doing well but some time goes waste for everyone friends, whether it is a company or a person, so this time their time went waste that is why negativity is seen in everything but it is not that the company is useless with time - Also, if we keep reading its presentation over time, as soon as we see improvement, then the boom in such companies is also very fast friends because these are top most companies and as soon as we see improvement, then Then big investors invest a lot of money in it.
In the next slide, I told friends, how they are distributing dividends, that is, how the company is giving dividends, it gives a good amount of dividends, see below, from FY 23 to FY 24, the company has given a total dividend of 33.3 had given And the payout ratio is 60%. This time between FY24 and FY25, the company has given an intermediate dividend, which is Rs. 25.
But if we are investors, then we should not be too concerned about dividends, friends, because If we invest money in a good stock at the right place, then we will make so much money that we cannot earn it in a lifetime by investing in dividend stocks. Now the complete Outlook 2025 is here. It is very important to read this, friends. From here we got to know what the company is planning for the future.
What is the plan to focus on? Demand condition, challenging question about immediate recovery in third quarter? Depyderm, the wedding season was very good, so wedding season means whenever there is some function in the house, friends, the house is cleaned and painted. It is also used a lot and now it works in everything, i.e. from curtains to paint, it has entered everything, so its product will be used somewhere or the other whenever there is a festival or a program in any house. ask for We are saying that we will have to recover immediately in the third quarter. In the next point we have talked about the addicted monsoon coupled with the expected boost in government spending, should aid recovery in rural demand in quarter three and quarter four.
So the monsoon which was like this is gone and now after that What will happen is that if the government increases its work, we will also get recovery from it, that is, the rural areas from where their revenue was coming less, now there should also see good revenue. In the third and fourth quarter, there will be a strong focus on the core standing of the brand.
They are focusing more on their core business and this is what should happen friends for a company that a lot of attention should be paid to its main business because that is where the company has been established and that is its foundation, that is why we know that company. So we are strengthening our brand more, providing strength, the next point says focus on growing and scaling our industrial business, in which we have entered a few years ago, so we want to expand and scale it as well, i.e. that we want to expand more and focus on that The macro economic situation remains constrained in some of our international geographies, especially in Asia and Africa. So, if we look at it geographically, the situation in Asia and Africa is going to be somewhat similar, the company has already informed this.
After that, the company told what to expect Softening in the raw material price How ever need to maintain caution on wallet in crude and other raw key and output materials So friends, these have a huge relation with crude, see, oil companies or Asian i.e. paint companies are very much dependent on crude, as soon as There will be a huge fluctuation in the cloud, there will be a huge impact on their prices too, but they cannot decrease or increase their prices at once, so they have to face this big problem, so he has written about the same here that There has been a slight reduction in the prices of raw material but the crude oil and some input output material prices trouble them, we have to maintain them and friends, in the end he has made a painting for the youth which This painting is for the bravery and dedication of our armed forces on our 78th Independence Day and it is completely made of Asian Paints.
While saying this, the company said thank you, that is, they said thank you, so this was their whole painting. Friends, what we got to know from this presentation is that basically this quarter and this half of the company did not go well but the company is still focused for the future and is trying to recover the problems that it faced as soon as possible and the company is not useless friends, repeat it again and again I am saying that it is not that if one quarter goes bad then the company is useless.
Rather, investors like us get an opportunity in such quarters because the price will fluctuate, the price will go down, everything will look bad, then the media will exaggerate it. What will happen, this thing will have a huge impact on the price.
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