Berger Paints Q2 results: PAT declines 7.5% to Rs 270 cr on weak demand

Berger Paints India reported a bigger-than-expected drop in second-quarter profit on Tuesday, as above-average rainfall and price hikes dampened demand.

The company's consolidated net profit fell 7.5% to Rs 270 crore (about $32 million) in the July-September quarter, lower than analysts' estimate of Rs 284 crore, per data compiled by LSEG.

Revenue from operations rose 0.3% to Rs 2,775 crore, lagging behind analysts' expectations of Rs 2,837 crore.  KEY CONTEXT

Paint makers, including Berger, hiked prices by up to 2.5% in the second quarter as domestic competition intensified with Grasim Industries entering the sector earlier this year.

India also saw higher-than-normal rainfall, which lashed Berger's key markets including Andhra Pradesh, Kerala and West Bengal, resulting in flooding and lacklustre sales.

 

The company, India's second-largest paint maker by market capitalisation, is the first among its peers to report second-quarter results.

Kansai Nerolac, Akzo Nobel India and market leader Asian Paints are set to report results later this week.