Furniture, Furnishing & Paints company Berger Paints (India) announced Q2FY25 results Standalone Financial Highlights: Revenue from Operations for the Q2FY25 was Rs 2,430.7 crore as against Rs 2,439.8 crore in the Q2FY24, representing a decline of 0.4%. EBITDA (excluding Other Income) for the Q2FY25 was Rs 383.4 crore against Rs 403.1 crore in the Q2FY24, representing a decline of 4.9%. Net Profit for the Q2FY25 was Rs 229.0 crore as against Rs 243.9 crore in the Q2FY24, representing a decline of 6.1 %. Consolidated Financial Highlights: Revenue from Operations for the Q2FY25 was Rs 2,774.6 crore as against Rs 2,767.3 crore in the Q2FY24, representing an increase of 0.3%. EBITDA (excluding Other Income) for the Q2FY25 was Rs 434.2 crore against Rs 473.7 crore in the Q2FY24, representing a decline of 8.3%. Net Profit for the Q2FY25 was Rs 269.9 crore as against Rs 292.1 crore in the Q2FY24, representing a decline of 7.6%. Performance Highlights: Despite registering marginal growth, the company has gained market share during the quarter. Construction Chemicals, Waterproofing, Wood Coatings, and Premium & Luxury top coats continued to perform well within the Decorative segment. Protective coatings did well as per expectations. The gross profit margin of 41.7% was the highest in the last 10 quarters. Operating Profit Margin was within guidance level of 15% to 17% during the quarter. Abhijit Roy, Managing Director & CEO, Berger Paints India, said:"The extended monsoons, adverse weather & flooding in some key markets made this a tough quarter although we saw strong traction towards the quarter end. This resulted in an almost flat quarterly revenue performance and moderate single-digit growth on volume terms. On the profitability front, this quarter saw one of the highest levels of gross margins in the last 10 quarters and our operating margin remained within guidance levels despite the continued investments that the company made in branding, advertisement, and manpower to strengthen our market presence. Though the quarter numbers were muted, we expect that the second half of the year will be better in terms of revenue and profitability. We continued to do well in the focus segments of the Company, especially waterproofing, construction chemicals, wood coatings, and the premium plus coating segments. In addition, the Company saw a healthy improvement in its network on the back of the installation of 3804 new Colorbank tinting machines up to September 2024. The mass volume range products however suffered reduced demand due to inclement weather leading to the muted numbers reported for the quarter. Operating profit for the quarter, while healthy, had a negative growth rate. Three factors contributed to this, (a) the scale effect, (b) our investment in new manpower, and (c) increased investment in advertising and brand-building activities for our differentiated products. On the international front, our Polish operations continued to do well. However, there was a one-time set-off in projects which has impacted profitability this quarter. Nepal continued to be challenging, but on October 24, Nepal registered a double-digit revenue growth after almost a year and we expect a turnaround in their figures going forward. We remain optimistic for H2 on the back of the reversal of the price decrease impact and the improving market demand." Result PDF