Berger Paints reports Rs 354 crore profit in Q1, stock ends higher

Berger Paints India reported a consolidated net profit of Rs 354.03 crore in the June 2024 quarter against Rs 354.91 crore in the same quarter a year ago. Profit growth was flat. The paint company's revenue from operations climbed 2% at Rs 3,091 crore, a 2% rise from Rs 3,029.5 crore in the corresponding period of last year.

EBITDA (Earnings before interest, taxes, depreciation and amortisation) slipped 6.2% to Rs 522.4 crore in Q1 from Rs 556.7 crore last year.

Margins stood at 17%. The company said that the operating margin was marginally ahead of guidance levels this quarter. The earnings were announced during market hours. The stock ended 2.59% higher at Rs 531.55 against the previous close of Rs 518.15 on BSE.

Commenting on the outlook of its business, Berger Paints said normal monsoon is likely to shore up rural demand condition. Decorative business value growth will improve in Q2, aided by product price increases, the paints major said adding that industrial business outlook was seen better on the back of increased government spending on infrastructure post-elections.

However, geopolitical factors may pose some risk to inflation.