Berger Paints Q2 net profit dips 7.6% at Rs 270 crore amid prolonged rainfall

Berger Paints flagged extended monsoons, adverse weather & flooding in some key markets as some of the challenges faced in the quarter (File photo)

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Berger Paints on November 5 reported a 7.6 percent decline in consolidated net profit (attributable to owners) at Rs 269.6 crore in the second quarter of FY25, compared to Rs 291.6 crore in the corresponding period of the previous financial year, the company said in an exchange filing.

The company flagged extended monsoons, adverse weather & flooding in some key markets as some of the challenges faced in the quarter but noted that it saw strong traction towards the quarter end. "This resulted in an almost flat quarterly revenue performance and moderate single digit growth on volume terms," Berger Paints said in a statement.

Consolidated revenue from operations remained flat at Rs 2,774.6 crore. EBITDA (excluding other income) for the quarter ended September 30, 2024 was Rs 434.2 crore against Rs 473.7 crore in the corresponding quarter of the last year, representing a decline of 8.3 percent. On a standalone basis, revenue from operations declined 0.4 percent at Rs 2,430.7 crore while profit dipped 6.1 percent.

"Though the quarter numbers were muted, we expect that the second half of the year will be better in terms of revenue and profitability," said Abhijit Roy, Managing Director & CEO.

The company said it reported strong performance in its key segments, particularly in waterproofing, construction chemicals, wood coatings, and premium coatings. It has also expanded its network significantly, installing 3,804 new Colorbank tinting machines by September 2024. However, demand for mass volume range products has declined due to adverse weather conditions, which has negatively impacted the overall performance for the quarter.  Key  markets like Andhra, Kerala, West Bengal, Gujrat & Maharashtra were impacted.

"We remain optimistic for H2 on the back of the reversal of the price decrease impact and the improving market demand," Roy added.