Berger Paints Reports Mixed Earnings Amid Weather Woes

Berger Paints India faced a 7.6% decline in net profit for Q2 of FY 2024-25 due to weather disruptions. The company's revenue saw marginal growth while a price hike was implemented. International operations in Poland fared well, though challenges persisted in Nepal.

Berger Paints India, a leading company in the coatings industry, reported a consolidated net profit decline of 7.6% to Rs 270 crore for the second quarter of the 2024-25 fiscal year. This compares to a net profit of Rs 292 crore recorded in the same quarter the previous year.

In a filing with the stock exchange, Berger Paints noted a marginal revenue increase of 0.3%, reaching Rs 2,774 crore from Rs 2,767 crore in the corresponding period of FY'24. EBITDA fell by 8.3% to Rs 434 crore from Rs 473 crore, attributed in part to adverse weather conditions.

The company cited extended monsoons and flooding in key markets such as Andhra Pradesh, Kerala, West Bengal, Gujarat, and Maharashtra as influential factors. A price hike of 2.3% was initiated. Despite weather challenges, international operations, particularly in Poland, performed well, although profitability was impeded by a one-time project set-off.

(With inputs from agencies.)