Berger Paints India posted a 7.61% decline in net profit for Q2 FY25, impacted by higher raw material costs and a challenging economic environment. The company's profit after tax fell to Rs.221.5 crore compared to Rs.239.8 crore in the same period last year, marking a notable dip for the paint manufacturer amidst fluctuating market conditions.
Revenue for the quarter, however, showed resilience with a 5.3% increase, reaching Rs.2,568.9 crore, driven by steady demand in urban and semi-urban regions. Despite revenue growth, margins were under pressure due to rising input costs, primarily in raw materials such as titanium dioxide and packaging expenses, which have seen price hikes globally. Berger Paints noted that while there has been an increase in decorative and industrial paint sales, it has been offset by the strain on profitability.
To mitigate future cost impacts, Berger Paints is implementing strategic cost-cutting measures and focusing on operational efficiencies. Additionally, the company is exploring price adjustments in its product lines to pass on a portion of the cost burden to end consumers, though it remains cautious of demand sensitivity. Berger Paints also aims to expand its product range in the premium paint segment and strengthen its supply chain to better manage costs.
The Indian paint industry continues to experience demand, driven by housing and infrastructure growth, yet companies face headwinds from cost volatility. Berger Paints remains optimistic about the long-term outlook and aims to maintain growth momentum by leveraging its distribution network and investing in sustainable and high-quality product innovations.
