Shares of Berger Paints India opened in the red on November 3 despite delivering robust financial results for the July-September quarter 2023. This significant profit growth was driven by aggressive distribution expansion and innovation. 

The company reported an impressive 33% year-on-year (YoY) surge in consolidated net profit, reaching Rs 292 crore. The company achieved a market share in India exceeding 20% by the end of H1FY24. 

Berger Paints’ revenue steadily grew by 3% to Rs 2,767 crore. EBITDA (earnings before interest tax depreciation and amortisation) reached Rs 473.65 crore, reflecting a strong 30.4% YoY increase.

Softening raw material prices contributed to improved gross margins. Berger Paints’ management remains confident in maintaining double-digit growth and similar EBITDA margins in the second quarter, although analyst ratings vary.

In the afternoon trading hours, shares of Berger Paints recovered from the early losses. As of 1:30 pm, the stock was trading at Rs 551.25, up 0.42% from the last closing price on the National Stock Exchange (NSE).

Headquartered in Kolkata, Berger Paints India operates 16 manufacturing units in various countries and has a strong track record of dividend payments for 28 consecutive years, emphasising its commitment to shareholder returns.