Berger Paints India Limited , one of India's leading paint manufacturers, has reported a positive start to the fiscal year, with growing urban demand and anticipation of a government infrastructure spending boost later in the year.

Q1 Performance Highlights

Berger Paints demonstrated resilience in the first quarter, posting growth despite challenging weather conditions:

• Consolidated revenue from operations increased by 3.6% to Rs. 3,200.76 crores, up from Rs. 3,091.01 crores in the same quarter last year.
• EBITDA (excluding other income) grew by 1.1% to Rs. 528.41 crores, compared to Rs. 522.41 crores in Q1 of the previous year.
• The company achieved a mid-single-digit volume growth, with a narrowing volume-value gap of 3.6% compared to 7% in the previous fiscal year.

Urban Market Momentum

Abhijit Roy, Managing Director & CEO of Berger Paints India Limited, noted, "This quarter saw sequential improvements in demand with month-on-month improvements being observed." The company reported increasing traction in urban markets, which contributed significantly to its performance.

Market Share Gains

Berger Paints continued to outperform the industry, resulting in market share gains:

The company's market share is estimated to exceed 20%, based on results declared by listed major paint companies.

Segment Performance

• The decorative segment delivered mid-single-digit volume growth.
• Strong traction was observed in Roof Kool & Seal, Home Shield range of products (construction chemicals), and wood coatings.
• The protective and automotive coatings maintained positive volume momentum.

Challenges and Outlook

Despite the positive performance, Berger Paints faced some challenges:

• The early onset of monsoon impacted growth, particularly in May-June.
• A fire incident at a warehouse in Barasat, West Bengal, resulted in an exceptional loss of Rs. 36.81 crores.

Looking ahead, the company anticipates a boost from government infrastructure spending later in the year. Mr. Roy stated, "The gradual and sequential improvement in domestic demand indicators and improving momentum in key markets are positive signs which were interrupted by the inclement weather but will recover in short order."

Strategic Focus

Berger Paints remains committed to innovation and brand distinctiveness to navigate short-term challenges. The company expanded its store footprint by over 300 during the quarter, taking the total count to 1,300+ stores, underscoring continued retail network growth.

As India's paint industry continues to evolve, Berger Paints' focus on urban markets and anticipation of infrastructure spending could position it well for future growth. However, the company remains cautious about potential risks from volatile geopolitical situations and uncertainties resulting from international tariff negotiations.

Berger Paints India Limited , one of India's leading paint manufacturers, has reported a mixed set of financial results for the first quarter. The company saw a modest increase in revenue but experienced a decline in net profit, partly due to an exceptional loss from a fire incident.

Revenue Growth

Berger Paints reported consolidated revenue from operations of ₹3,200.76 crore, representing a 3.6% increase from ₹3,091.01 crore in the corresponding quarter of the previous year. This growth came despite challenges posed by an early onset of monsoon.

Profitability

The company's EBITDA (earnings before interest, taxes, depreciation, and amortization), excluding other income, showed a slight improvement. It rose by 1.1% to ₹528.40 crore, compared to ₹522.40 crore in the same quarter last year.

However, net profit for the quarter declined by 11% to ₹315.04 crore, down from ₹354.03 crore in the corresponding period of the previous year. This decrease was primarily attributed to an exceptional loss of ₹36.81 crore arising from a fire incident at the company's regional distribution center and warehouse facility in Barasat, West Bengal.

Key Performance Indicators

Berger Paints reported a volume-value gap of 3.6% for the quarter, an improvement from 7% in the last fiscal year. The company continued to gain market share and delivered value growth higher than listed industry players.

Segment Performance

The company registered robust growth in key focus segments including:

• Waterproofing
• Construction chemicals
• Wood coatings

The industrial segment's performance was led by the Automotive division, which showed healthy performance in both revenue growth and profitability.

Subsidiary and Joint Venture Performance

Several of Berger Paints' subsidiaries and joint ventures showed promising results:

• Berger Jenson & Nicholson (Nepal) Private Limited
• Berger Becker Coatings Private Limited
• Berger Rock Paints Private Limited
• Berger Nippon Paint Automotive Coatings Private Limited

These entities registered strong value and profit growth. However, some subsidiaries like STP Limited and SBL Specialty Coatings Private Limited reported flat growth.

Management Commentary

Abhijit Roy, Managing Director & CEO of Berger Paints India Limited, commented on the results: "This quarter saw sequential improvements in demand with month-on-month improvements being observed. The early onset of the monsoon played spoilsport this quarter. We were still able to deliver value growth higher than the listed industry players and continued to improve our market share."

He added, "Profitability for the quarter was healthy delivering improvements both on QoQ and YoY basis in spite of increased competitive intensity. The gradual and sequential improvement in domestic demand indicators and improving momentum in key markets are positive signs which were interrupted by the inclement weather but will recover in short order."

Outlook

While the company sees positive signs in domestic demand indicators and improving momentum in key markets, it also acknowledges potential risk factors. These include volatile geopolitical situations and uncertainty resulting from international tariff negotiations.

Berger Paints stated that it will continue its efforts of consistent thrust on innovation and brand distinctiveness to navigate future challenges and opportunities in the market.

The company's board meeting to approve these results was held on August 5, commencing at 12:30 p.m. and concluding at 2:30 p.m.

Note: All figures are in Indian Rupees (₹) and 1 crore = 10 million.