Berger Paints India Ltd on Friday recorded a profit of Rs 353.56 crore during the first quarter of FY25, down 0.2 per cent in comparison to Rs 354.35 crore during the corresponding quarter of FY24. It posted revenue from operations at Rs 3,091.01 crore, up 2 per cent as against Rs 3,029.51 crore during the same period of previous financial year. The company EBITDA stood at Rs 522.4 crore, down 6.2 per cent on-year.
Meanwhile, on a standalone basis, revenue stood at Rs 2,806.3 crore and profit for the quarter was recorded at Rs 305.5 crore. Berger Paints recorded a double digit volume growth during the quarter. It said that the value growth moderated over the corresponding period on account of: a) Impact of product price reduction of about 5 per cent taken in Q3 and Q4 FY24, b) High volume/low value CC products showed greater traction, and c) Luxury product sales softened. States of Kerala & West Bengal, which are primarily luxury market had a subdued quarter.
Abhijit Roy, Managing Director & CEO of Berger Paints India, said, “This quarter was tough due to elections, inclement weather and slowdown in a few key markets. In spite of this we were able to deliver double digit volume growth and the highest market share gain in a single quarter. Though we did well on the volume growth front, the value sales were lower due to the impact of the price drop taken in the prior quarters and stronger sales seen in the high volume, low value products in the waterproofing and construction chemicals category.”
Profitability for the quarter, he added, while healthy, had negative growth. Three factors contributed to this, among them being the base effect of a very high margin recorded in Q1FY24, impact of price reductions in prior quarters and an increased investment in advertising and brand building activities linked to elections. “We continue to register robust growth in waterproofing, construction chemicals and wood coating 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,” he said.
On the international front, the company’s Polish operations continued to do well while its operations in Nepal continued to be a challenge. “We are now starting to see some signs of improvement in Nepal,” he said.
On the company restructuring front, Abhijit Roy said that Rishma Kaur was appointed as the chairperson of the company by the Board of Directors, with effect from 13th August, 2024. Kanwardip Singh Dhingra was appointed as Vice Chairman of the Company with effect from 13th August, 2024. Kuldip Singh Dhingra and Gurbachan Singh Dhingra will continue on the Board as Non-Executive Directors designated Chairman Emeritus and Vice chairman Emeritus respectively with effect from 13th August, 2024 and would guide their successors on strategic thinking, leadership and overall understanding of the business.
“We remain optimistic on the demand scenario for the year ahead and look forward to introducing our customers and influencers to new innovations in products and services as the year progresses,” said Abhijit Roy.