Berger Paints Q4 net jumps 18% on volume growth

Berger Paint’s operations in Poland and Nepal saw good topline performances with the Nepal operations seeing a turnaround on the back of improved business conditions and a low base.
| Photo Credit:
PHIL NOBLE

Paints major Berger Paints on Wednesday reported around 18 per cent year-on-year increase in its consolidated net profit to ₹262.91 crore for the fourth quarter last fiscal, backed by a high single digit volume growth during the period.

The company had posted a net profit of ₹222.62 crore for the fourth quarter of FY24. In a stock exchange filing, it said revenue from operations grew 7.29 per cent y-o-y at ₹2,704.03 crore for Q4FY25 against ₹2,520.28 crore for Q4FY24.

During the period under review, its total expenses rose 4.68 per cent y-o-y at ₹2,380.55 crore, whereas cost of material consumed witnessed a 5.35 per cent y-o-y rise at ₹1,393.22 crore during the period.

EBITDA (excluding Other Income) for the fourth quarter was ₹427.8 crore against ₹350.9 crore in the corresponding quarter of the last financial year, registering a y-o-y increase of 21.9 per cent.

“The tough market conditions continued into the fourth quarter with muted urban demand and increased competition intensity. In spite of this we were able to deliver high single digit volume growth, with sequential improvement in value performance with reduced gap between volume -value growth gap supported by easing impact of Q4FY24 price reductions and momentum in the premium emulsion category. The visible improvement in the industrial and decorative segments were good indicators of a demand improvement cycle,” said Abhijit Roy, Managing Director & CEO, Berger Paints India.

Roy said operating margin remained within the guided range, aided by improved gross margin and disciplined cost management. “Q4FY25 saw the company achieve the highest gross margin percentage in the past 12 quarters. EBIDTA for the quarter saw a strong improvement and we are happy to report that we are currently at zero gross debt and have further improved our net cash position at the end of the quarter,” he said.

Topline performers

On the international front, the paint maker’s operations in Poland and Nepal saw good topline performances with the Nepal operations seeing a turnaround on the back of improved business conditions and a low base.

“We remain optimistic about the demand scenario for the months ahead on the back of the favorable budget announcements, Government spending on infrastructure and development and a good monsoon season. The strained geopolitical conditions in the immediate neighbourhood seems to have stabilized which hopefully will continue,” the MD added.

On Wednesday, Berger Paints scrip ended the day at Rs 553.80 apiece on BSE, up 2.02 per cent from the previous close.

Published on May 14, 2025