Berger Paints India Q3 Results: Net profit down 1.4% to ₹296 crore, revenue rises 3%

Berger Paints India, announcing its quarterly earnings for the three months that ended on December 31, 2024, posted a 1.4% decline in its ₹295.97 crore impacted by price cuts, muted urban demand and a slowdown in a few key markets. Its net profit in the year-ago quarter stood at ₹300.16 crore.

"The tough market conditions continued into the third quarter with muted urban demand and a slowdown in a few key markets. In spite of this, we were able to deliver high single-digit volume growth in the quarter and also saw a sequential uptick in both volume and value growth," Berger Paints India Managing Director and CEO Abhijit Roy said in a company filing.

The paint company’s consolidated revenue from operations in the reporting quarter increased by 3.2% to ₹2,975.06 crore as against ₹2,881.83 crore in the previous fiscal. Its total expenses were at ₹2,608.13 crore, up 4.14% from ₹2,504.32 crore in the year-ago period.

Berger Paints shares ended 2.12% down at ₹474.50 apiece on the NSE on Tuesday, February 11. Its market capitalisation stood at ₹55,321.71 crore. The company declared its Q3 FY25 earnings post-market hours.

Although the company performed well considering the growth in volume, the sales value was lower because of the price drop experienced in the preceding quarters, along with higher sales reported in high volume, low-value products, the company’s CEO Roy noted.

"Profitability for the quarter, while healthy, had negative growth on the back of the impact of price reductions in prior quarters, currency depreciation and inventory impact of monomer price increase," he said, adding that the visible uptick in the industrial segments is a good indicator of a demand improvement cycle.

On the outlook, Roy said, "We remain optimistic about the demand scenario for the months ahead on the back of the favourable budget announcements, government spending on infrastructure and development and a good monsoon season. The weakening of the price decrease impact also augurs well for the months ahead."