Berger Paints India Limited has announced its financial results for the third quarter ending December 31, 2024, reporting a mixed performance with growth in revenue but a decline in profitability.
Key Financial Highlights
Consolidated Results (Q3 FY2024):
- Revenue from operations stood at ₹2,975.06 crores, a 3.2% increase compared to ₹2,881.83 crores in the corresponding quarter of the previous year.
- EBITDA (excluding other income) came in at ₹471.73 crores, reflecting a 1.7% decline from ₹480.04 crores in Q3 FY2023.
- Net profit for the quarter was ₹295.97 crores, down 1.4% from ₹300.16 crores in the same period last year.
Standalone Results (Q3 FY2024):
- Revenue from operations grew to ₹2,584.76 crores, a 0.4% increase from ₹2,574.02 crores in Q3 FY2023.
- EBITDA (excluding other income) dropped to ₹417.49 crores, marking a 2.8% decline from ₹429.58 crores in the prior year.
- Net profit surged to ₹306.08 crores, an increase of 16.3% from ₹263.25 crores in the corresponding quarter.
Nine-Month Financial Performance:
- Revenue from operations for the nine months ended December 31, 2024, stood at ₹8,840.68 crores, a 1.9% increase from ₹8,678.64 crores in the same period last year.
- EBITDA for the nine months was ₹1,428.32 crores, down 5.4% from ₹1,510.44 crores in the previous year.
- Net profit for the period declined by 2.9% to ₹919.90 crores from ₹947.20 crores last year.
Operational and Market Insights
Despite muted urban demand and economic slowdowns in key markets, Berger Paints delivered high single-digit volume growth in the decorative segment, indicating steady consumer demand. The industrial segment showed a strong performance, contributing significantly to the overall revenue growth.
Challenges such as price fluctuations, weaker demand for high-volume, low-value products, and rising input costs impacted overall profitability. However, profitability remained stable due to operational efficiencies and cost-control measures.
On the international front, the company’s operations in Poland and Nepal reported strong growth, despite global economic uncertainties. Berger Paints also expanded its presence by inaugurating a new corporate office in Kolkata, enhancing its operational capabilities.
Berger Paints remains optimistic about future demand, citing favorable economic conditions and expected infrastructure development as key growth drivers. With the upcoming summer season, the company plans to introduce new consumer-centric innovations to strengthen its market position.
Commenting on the results, Abhijit Roy, Managing Director & CEO of Berger Paints India, stated: “While market conditions were challenging, our strategic initiatives have helped us maintain steady revenue growth. We look forward to launching innovative products and enhancing our market presence in the coming months.”
While Berger Paints India witnessed modest revenue growth, profitability pressures due to increased costs and market slowdowns impacted overall margins. The company’s focus on innovation, efficiency, and expansion is expected to drive future growth and maintain its competitive edge in the paint and coatings industry.
