Berger Paints profit tumbles 24 percent as margins slip
Berger Paints India posted after-tax earnings that fell 23.6 percent during the July through September period as prolonged rains dampened customer demand. The decorative coatings manufacturer earned 206 crore rupees compared with 270 crore rupees twelve months earlier, while sales edged up 1.9 percent to 2,827 crore rupees.
Operating earnings before interest, taxes, depreciation and amortization declined 19 percent to 352 crore rupees as margins contracted to 12.4 percent from 15.6 percent one year prior. Managing Director Abhijit Roy attributed the weaker performance to an extended monsoon that disrupted business across multiple regions, though the firm achieved high single-digit volume expansion. Lower exterior paint sales, an unfavorable product blend and increased brand promotion expenses further pressured profitability during the quarter.
Results for the six months through September showed consolidated revenue climbing 2.8 percent to 6,028.3 crore rupees. Operating earnings dropped 7.9 percent to 880.7 crore rupees, and net income decreased 16.4 percent to 521.4 crore rupees. Company shares finished 0.58 percent lower at 536 rupees apiece on the Bombay Stock Exchange.
