Shares of Berger Paints India Limited rose as much as 3.5 percent to Rs 493 in morning trade on February 12 even as the company's third-quarter left investors disappointed.
The paints major reported a net profit of Rs 295.13 crore for the October-December quarter of FY25, marking a 1.5 percent decline from Rs 299.65 crore in the same period last year. Despite the dip in profit, the company's revenue from operations rose 3 percent year-on-year to Rs 2,975 crore, up from Rs 2,881.83 crore in Q3 FY24.
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Total expenses climbed to Rs 2,608 crore for the quarter, compared to Rs 2,504 crore a year ago. The Kolkata-based company, which holds a market share of over 20 percent, noted that it continued to gain ground in the industry.
Berger Paints attributed its high single-digit volume growth to inflationary pressures and muted consumer sentiment in discretionary spending. The gap between volume and value growth, the company explained, stemmed from price reductions in earlier quarters and stronger sales of lower-value products like texture paints, tile adhesives, and admixtures. Meanwhile, demand for high-value products such as enamels remained subdued.
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Looking ahead, the company remains optimistic about sequential improvement in its decorative paints segment. It expects consumer sentiment to pick up, aided by favorable budget measures and a healthy monsoon. Additionally, the impact of past price cuts is expected to wane, helping bridge the volume-value gap in the coming quarters.
Separately, Berger Paints MD & CEO Abhijit Roy confirmed that the company is no longer in the race to acquire Akzo Nobel’s India unit, citing high valuations. Earlier reports had suggested that Berger Paints was among the contenders, along with Pidilite Industries, JSW Paints, and Indigo Paints, for the Dutch paint major’s Indian business.
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At about 9:20 am, shares of the company were trading at Rs 486, higher by 2 percent from the last close on the NSE. Berger Paints India's share price has gained over 6 percent since the start of the year.
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