Berger Paints India Limited, one of India’s leading paint manufacturers, announced its unaudited consolidated financial results for the quarter and nine months ended December 31, 2024, on February 11, 2025. The results highlight a mixed performance, with steady revenue growth offset by declines in EBITDA and net profit. Despite challenges, the company demonstrated resilience in its decorative and industrial segments, along with operational improvements in Nepal and the inauguration of a new corporate office in Kolkata.
Here’s a detailed analysis of the key highlights and financial performance:
Key Highlights for Investors
Revenue Growth
Quarter Ended December 31, 2024: Revenue from Operations increased by 3.2% to Rs. 2,975.06 crores, compared to Rs. 2,881.83 crores in the corresponding quarter of the previous year.
Nine Months Ended December 31, 2024: Revenue from Operations rose by 1.9% to Rs. 8,840.68 crores, up from Rs. 8,678.64 crores in the same period last year.
The growth in revenue reflects the company’s ability to maintain its market position despite inflationary pressures and competitive challenges.
EBITDA Decline
Quarter Ended December 31, 2024: EBITDA (excluding Other Income) decreased by 1.7% to Rs. 471.73 crores, down from Rs. 480.04 crores in the same quarter last year.
Nine Months Ended December 31, 2024: EBITDA declined by 5.4% to Rs. 1,428.32 crores, compared to Rs. 1,510.44 crores in the corresponding period last year.
The decline in EBITDA highlights the impact of rising input costs and operational challenges during the period.
Net Profit Decline
Quarter Ended December 31, 2024: Net Profit fell by 1.4% to Rs. 295.97 crores, compared to Rs. 300.16 crores in the previous year.
Nine Months Ended December 31, 2024: Net Profit decreased by 2.9% to Rs. 919.90 crores, down from Rs. 947.20 crores in the same period last year.
The dip in net profit underscores the pressure on margins, despite the company’s efforts to optimize costs and improve operational efficiency.
Operational Performance
The decorative segment recorded high single-digit volume growth, driven by strong demand in both urban and rural markets.
The industrial business delivered a robust performance, supported by increased infrastructure and construction activities.
Operations in Nepal showed significant improvement, contributing to the company’s international growth.
Berger Paints inaugurated a new corporate office in Kolkata, reflecting its commitment to strengthening its operational base and supporting future growth initiatives.
Consolidated Financial Results (₹ Crores)
| Particulars | Q3 FY2025 (Unaudited) | Q2 FY2025 (Unaudited) | Q3 FY2024 (Unaudited) | 9M FY2025 (Unaudited) | 9M FY2024 (Unaudited) | FY2024 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 2,975.06 | 2,774.62 | 2,881.83 | 8,840.68 | 8,678.64 | 11,192.98 |
| Net Profit for the period | 295.97 | 269.90 | 300.16 | 919.90 | 947.20 | 1,169.82 |
| Earnings Per Share (in INR) | 2.538 | 2.311 | 2.578 | 7.888 | 8.118 | 10.02 |
Analysis and Outlook
Berger Paints India Limited’s Q3 FY2025 results reflect a challenging operating environment, marked by inflationary pressures and rising input costs. However, the company’s ability to achieve revenue growth in both the quarter and nine-month periods demonstrates its strong market presence and customer loyalty. The decorative segment’s volume growth and the industrial business’s robust performance are key positives, highlighting the company’s diversified portfolio and resilience.
The decline in EBITDA and net profit underscores the need for continued cost optimization and operational efficiency improvements. Berger Paints’ focus on expanding its international footprint, particularly in Nepal, and its investment in infrastructure, such as the new corporate office in Kolkata, are strategic moves that position the company for long-term growth.
Looking ahead, Berger Paints is well-positioned to capitalize on the growing demand for paints and coatings in India, driven by urbanization, infrastructure development, and increasing consumer spending. The company’s commitment to innovation, sustainability, and customer-centric solutions will be critical in navigating the evolving market landscape.
Disclaimer: The financial results and analysis are based on unaudited consolidated financial statements as of December 31, 2024. Readers are advised to refer to the official financial statements and reports for accurate and detailed information.
