Berger Paints Reports Q2 Profit Dip
Paint

Berger Paints Reports Q2 Profit Dip

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.

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.

Next Story
Infrastructure Urban

Our growth today is mainly driven by onsite users

Sashi Kiran, Founder, FALCONBRICK Technologies tells CW about company plans.What inspired you to launch FALCONBRICK Technologies and what specific inefficiencies in the construction industry were you looking to address?The idea emerged when we wondered why the $ 600 billion Indian construction industry is plagued with project delays and cost overruns. Digging deeper, we found that projects were being managed in very outdated ways, leading to huge chaos during execution. We believed technology had a clear answer and with our collective experience in construction and technology, we set out to bu..

Next Story
Infrastructure Urban

PM Internship Scheme Opens Round 2 Applications

The Prime Minister Internship Scheme (PMIS) has launched Round 2 of its pilot phase, offering over one lakh internships across 730 districts. After receiving more than six lakh applications in Round 1, this phase provides fresh opportunities in key sectors such as oil and gas, banking, FMCG, automotive, and manufacturing.More than 300 top companies are participating, allowing candidates to gain real-world experience, build networks, and enhance employability. Applicants can select internships based on location, sector, and preferences, with the option to apply for up to three roles. The scheme..

Next Story
Real Estate

From Earth’s Depths to Your Space: The Sedimento Experience

What if you could witness Earth’s story etched in every layer—a tale of transformation through time, well the SEDIMENTO collection by SOMANY Ceramics is a poetic tribute to this elemental narrative. Inspired by sedimentary bedrock, it evokes nature’s ever-changing forces, sculpted by wind, water, and time. Each glance and touch immerses you in the serene beauty of natural sedimentation.This is not just another tile collection. SEDIMENTO seamlessly blends durability with subtle textual elegance, making it ideal for demanding and long-lasting use. Its tactile textures embody quiet resilien..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?