Berger Paints India Limited (BPIL) posted a 37 per cent drop in net profit for the third quarter ended December 31, to Rs 14.96 crore on account of demand slag as well as holding a raw material inventory at higher than market prices. Net sales showed a flat growth during the period to Rs 358.25 crore from Rs 354.38 crore in the same quarter last fiscal.
Raw material prices for solvent based paints had gone up by more than 60 per cent in the first half of the year as crude prices had reached a record high. Berger, however, could not cash in on the falling raw material prices in the third quarter as it held a heavy inventory. The company would focus on the retail segment for the upcoming quarter when it also hopes to reap the benefits of the falling raw material prices.