Berger Paints net profit declines 0.2% to ₹353.6 crore, revenue up 2%

In the year-ago period, the net profit stood at ₹354.9 crore.

Revenue from operations stood at ₹3,091 crore in the first quarter of the current financial year as against ₹3,029.5 crore a year back, representing an increase of 2% year-on-year (YoY).

The paint maker's earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 6.2% to ₹522.4 crore as against ₹556.8 crore in the corresponding quarter of the last year.

Following the announcement, shares of Berger Paints were trading 2% higher at ₹528.9 on the NSE.

Abhijit Roy, Managing Director and CEO of Berger Paints India Ltd, said the first quarter of FY25 was tough due to general elections, inclement weather, and a slowdown in a few key markets.

"Profitability for the quarter, while healthy, had negative growth. Three factors contributed to this, key among them being the base effect of a very high margin recorded in Q1 FY24, the impact of price reductions in prior quarters and increased investment in advertising and brand-building activities linked to elections," he said.

He said the company is witnessing robust growth in the waterproofing, wood coating, and contain chemicals segments. "The industrial segment had a muted performance in April and May but saw revival from June onwards, which bodes well for us in the months ahead," Roy added.

On the international front, the company's Polish operations are doing well, while its operations in Nepal continue to be challenging.