7th, Nov, 2024

BERGER PAINTS Q2 FY2025 Results : Net Profit decline by 7.6% YOY

Berger Paints Q2 FY2025 Financial Results and Key Highlights

Berger Paints India Limited, one of India’s top paint companies, recently shared its financial performance for the quarter ending on September 30, 2024. This quarter brought unique challenges, such as extended monsoon rains, which affected demand. However, Berger Paints managed to achieve high profit margins and steady performance in its focus areas. Here’s a breakdown of the company’s financials and future expectations.

Berger Paints Q2 Financial Performance Highlights

Performance Metrics	Q2 FY2025	Q2 FY2024	YOY% Change (Q2)
Revenue from Operations	Rs. 2,774.6 crore	Rs. 2,767.3 crore	+0.3%
EBITDA (Excluding Other Income)	Rs. 434.2 crore	Rs. 473.7 crore	-8.3%
Net Profit	Rs. 269.9 crore	Rs. 292.1 crore	-7.6%

1. Revenue from Operations:

• The Berger Paint revenue in Q2 FY2025 was Rs. 2,774.6 crore, which is just 0.3% increase from the same quarter last year (Rs. 2,767.3 crore).

2. EBITDA:

• Berger’s EBITDA, excluding other income, was Rs. 434.2 crore, a 8.3% decrease from Rs. 473.7 crore last year.

3. Net Profit:

• Berger Paints Net profit for this quarter was Rs. 269.9 crore, which is 7.6% lower than the Rs. 292.1 crore profit earned in Q2 of the previous year.

Berger Paints Half-Year Financial Performance

Performance Metrics	H1 FY2025	H1 FY2024	YOY% Change (H1)
Revenue from Operations	Rs. 5,865.6 crore	Rs. 5,796.8 crore	+1.2%
EBITDA (Excluding Other Income)	Rs. 956.6 crore	Rs. 1,030.4 crore	-7.2%
Net Profit	Rs. 623.9 crore	Rs. 647.0 crore	-3.6%

Looking at the half-year results (from April to September 2024):

Berger Paints’ half-year revenue grew 1.2% to Rs. 5,865.6 crore, while EBITDA and net profit declined by 7.2% and 3.6%, respectively.

1. Revenue from Operations:

• Berger Paints made Rs. 5,865.6 crore, a 1.2% increase from Rs. 5,796.8 crore in the same period last year.

2. EBITDA:

• EBITDA for this half-year was Rs. 956.6 crore, down 7.2% from Rs. 1,030.4 crore  last year.

3. Net Profit:

• Berger Paints Net profit for the half-year was Rs. 623.9 crore, which is 3.6% lower than last year’s Rs. 647.0 crore.

Investing in Growth

Berger Paints is investing in branding, advertisement, and workforce expansion to boost its presence in the market. This includes:

• Adding 3,804 new Colorbank tinting machines to its network by September 2024.

• Increasing advertising efforts to promote its unique products and services.

Performance in Overseas Markets

• Poland: Berger Paints’ Polish operations did well; however, a one-time adjustment in projects affected profits.

• Nepal: Despite a slow start, the Nepal market saw double-digit revenue growth in October 2024, marking a potential turnaround.

Outlook for the Second Half of FY2025

Berger Paints’ CEO, Abhijit Roy, shared optimism for the second half of FY2025. With better weather and market conditions expected, he believes that revenue and profit will improve.

About Berger Paints India Limited

Berger Paints is a top company in India’s paint industry and among the largest globally. Known for its innovative products like Easy Clean and WeatherCoat Anti-Dust, the company has transformed how painting is done in India, offering training, semi-automated tools, and top-notch customer service.

Final Summary

Despite a challenging Q2, Berger Paints India Limited maintained strong profit margins and growth in key product areas. The company’s focus on expanding its brand and network should help drive better results in the second half of the year, as market demand improves.

*Above mention figure are taken from the Unaudited (Consolidated) Financial Results of the Company for the quarter and half year ended on 30th September, 2024