India's Berger Paints posts quarterly profit jump on strong demand
India's Berger Paints posts quarterly profit jump on strong demand Aug 5 (Reuters) - Berger Paints India BRGR.NS reported a 28.5% rise in first-quarter profit on Wednesday on strong demand in its automotive and decorative segments.
Consolidated net profit for the quarter ended June 30 rose to 4.04 billion rupees ($42.45 million)
Revenue from operations grew by 12% year-on-year to 35.84 billion rupees
India's paint sector has been facing a period of intense competition following the aggressive market entry of Grasim Industries' GRAS.NS "Birla Opus" brand, which has pressured prices and increased marketing spends for incumbents
To counter rivals, Berger has been focusing on expanding its distribution network and promoting its premium waterproofing and luxury emulsion products. It also implemented price hikes
Raw material costs for the quarter rose about 29%. Paint makers have been navigating volatile prices of crude oil-linked raw materials, a key component in paint manufacturing, though prices have seen some recent moderation
($1 = 95.1700 Indian rupees)
(Reporting by Urvi Dugar in Bengaluru; Editing by Rashmi Aich)
((UrviManoj.Dugar@thomsonreuters.com; +91 9558725583;))
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