Q1 Results: Berger Paints Profit Flat, Revenue Rises Marginally The quarter was tough due to elections, inclement weather and slowdown in a few key markets, says, Abhijit Roy, Berger Paints India Managing Director and CEO
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Berger Paints India reported a consolidated net profit of INR 353.56 crore for the first-quarter of FY 2024-25 as against INR 354.35 crore in the same quarter a year ago. The profit stood flat at a slight decrease of 0.22 percent.
Berger Paints India Managing Director and CEO Abhijit Roy said that the quarter was tough due to elections, inclement weather and slowdown in a few key markets. "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," Roy said in a statement.
He further added that the profitability for the quarter, while healthy, had negative growth. "Three factors contributed to this, among them being the base effect of a very high margin recorded in Q1 FY24, impact of price reductions in prior quarters and an increased investment in advertising and brand building activities linked to elections," Roy said.
The paint company's revenue from operations for the quarter under review stood at INR 3,091 crore, a 2 percent increase from INR 3,029.5 crore in the corresponding period of last year. EBITDA (Earnings before interest, tax, depreciation and amortization) fell more than 6 percent YoY to INR 522.40 crore.
