The paint major's consolidated net profit decrease 7.53% to Rs 269.66 crore in Q2 FY25 as against Rs 291.64 crore posted in Q2 FY24.
Revenue from operations rose marginally to Rs 2,774.61 crore in Q2 FY25 as against Rs 2,767.30 crore posted in Q2 FY24.Profit before tax for Q2 FY25 was at Rs 358.15 crore, down 7.88% on year on year basis.
EBITDA slipped 8.33% to Rs 434.2 crore in Q2 FY25 as against Rs 473.7 crore posted in Q2 FY24.
During the quarter, operating profit margin was within guidance level of 15% to 17%.
On standalone basis, the companys net profit declined 6.11% to Rs 228.98 crore on 0.37% fell in revenue from operations to Rs 2,430.70 crore in Q2 FY25 over Q2 FY24.
On half year basis, the companys consolidated net profit declined 3.52% to Rs 623.22 crore on 1.18% rise in revenue from operations to Rs 5,865.62 crore in H1 FY25 over H1 FY24.
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Abhijit Roy, managing director & CEO of Berger Paints India, "The extended monsoons, adverse weather & flooding in some key markets made this a tough quarter although we saw strong traction towards the quarter end. This resulted in an almost flat quarterly revenue performance and moderate single digit growth on volume terms. On the profitability front this quarter saw one of the highest levels of gross margins in the last 10 quarters and our operating margin remained within guidance levels in spite of the continued investments that the company made in branding, advertisement and manpower to strengthen our market presence.
Though the quarter numbers were muted, we expect that the second half of the year will be better in terms of revenue and profitability. We continued to do well in the focus segments of the Company, especially water proofing, construction chemicals, wood coatings and the premium plus coating segments.
In addition, the company saw a healthy improvement in its network on the back of installation of 3,804 new colorbank tinting machines upto September, 2024. The mass volume range products however suffered reduced demand due to inclement weather leading to the muted numbers reported for the quarter. Operating profit for the quarter, while healthy, had a negative growth rate. Three factors contributed to this, (a) scale effect, (b) our investment in new manpower and (c) increased investment in advertising and brand building activities for our differentiated products. On the international front, our Polish operations continued to do well.
However, there was a one-time set-off in projects which has impacted profitability this quarter. Nepal continued to be challenging, but in October 24, Nepal registered a double digit revenue growth after almost a year and we expect a turnaround in their figures going forward We remain optimistic for H2 on the back of the reversal of the price decrease impact and the improving market demand".
Berger Paints India is engaged in retail, decorative and industrial painting solutions.
Shares of Berger Paints rose 0.48% to currently trade at Rs 515.50 on the BSE.
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