Berger Paints Q3 Results: Profit Down 1.4% Amid Demand Issues

Berger Paints Q3 Results: Profit Declines 1.4% to Rs 295 Crore, Revenue Up 3.2%

Paint manufacturer Berger Paints reported a 1.4% year-on-year decline in net profit for the quarter ended December, reaching Rs 295.97 crores. The company cited tough demand conditions, the impact of prior price reductions, currency depreciation, and inventory impacts from monomer price increases as contributing factors.

Key Financial Highlights for Q3

• Net Profit: Declined by 1.4% YoY to Rs 295.97 crores.
• Revenue from Operations: Increased by 3.2% to Rs 2,975.06 crores.
• EBITDA (excluding other income): Down 1.7% at Rs 471.73 crores.

Factors Affecting Performance

The company attributed the decline in net profit to several factors:

• Tough Market Conditions: Muted urban demand and a slowdown in key markets.
• Price Reductions: Impact of price drops implemented in prior quarters.
• Currency Depreciation: Depreciation of the currency affected profitability.
• Inventory Impact: Increase in monomer prices impacted inventory value.

Management Commentary

Abhijit Roy, Managing Director & CEO of Berger Paints India, commented on the results:

• Despite tough market conditions, the company delivered high single-digit volume growth.
• There was a sequential uptick in both volume and value growth.
• The visible uptick in the industrial segments is a good indicator of a demand improvement cycle.
• The company reported an improvement in its net cash position and continued market share improvement.

Nine-Month Performance

For the nine months ended December:

• Revenue from Operations: Increased by 1.9% to Rs 8,840.68 crores.
• EBITDA (excluding other income): Declined by 5.4% to Rs 1,428.32 crores.
• Net Profit: Declined by 2.9% to Rs. 919.90 crores.

Outlook

Roy expressed optimism about the demand scenario for the months ahead, citing favorable budget announcements, government spending on infrastructure & development, and expectations of a good monsoon season. The anticipated waning of the price decrease impact also bodes well for future performance.

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Categories: Berger Paints, Q3 Results, Stock Market News