<p>Bengaluru: Berger Paints India on Thursday reported lower-than-expected second-quarter earnings, as a weak monsoon and delayed festivities offset cooling raw material costs.</p><p>Consolidated net profit rose nearly 33 per cent year-on-year to 2.92 billion rupees ($35.1 million) for the quarter ending September 30, but fell short of analysts' estimate of 3.08 billion rupees as per LSEG data.</p><p>Berger's revenue grew 3.6 per cent, its slowest in 12 quarters, and also missed analysts' estimates.</p><p>Analysts had expected paint companies' sales to be impacted due to erratic distribution of monsoon rains and delayed festivities. India's monsoon this year was its lowest since 2018.</p><p>While Berger's decorative segment posted a double digit volume growth, the sale of exterior paints - used to protect walls from environmental deterioration - was heavily impacted due to delayed festive season and rains in September, CEO Abhijit Roy said in a statement.</p><p>Raw material costs, which account more than 60 per cent of the total expenses, fell nearly 6 per cent, but lower revenue growth impacted profits at India's second-biggest paint company by revenue.</p><p>Prices of key raw materials for paint companies, such as titanium dioxide and vinyl acetate monomer, declined 6.4 per cent and 44.4 per cent respectively, while crude oil prices fell 7.6 per cent, ICICI Securities said in a pre-earnings note.</p><p>Rival Asian Paints last month reported improved margins, though it missed profit estimates, while Kansai Nerolac's profit rose led by a fall in expenses.</p>
<p>Bengaluru: Berger Paints India on Thursday reported lower-than-expected second-quarter earnings, as a weak monsoon and delayed festivities offset cooling raw material costs.</p><p>Consolidated net profit rose nearly 33 per cent year-on-year to 2.92 billion rupees ($35.1 million) for the quarter ending September 30, but fell short of analysts' estimate of 3.08 billion rupees as per LSEG data.</p><p>Berger's revenue grew 3.6 per cent, its slowest in 12 quarters, and also missed analysts' estimates.</p><p>Analysts had expected paint companies' sales to be impacted due to erratic distribution of monsoon rains and delayed festivities. India's monsoon this year was its lowest since 2018.</p><p>While Berger's decorative segment posted a double digit volume growth, the sale of exterior paints - used to protect walls from environmental deterioration - was heavily impacted due to delayed festive season and rains in September, CEO Abhijit Roy said in a statement.</p><p>Raw material costs, which account more than 60 per cent of the total expenses, fell nearly 6 per cent, but lower revenue growth impacted profits at India's second-biggest paint company by revenue.</p><p>Prices of key raw materials for paint companies, such as titanium dioxide and vinyl acetate monomer, declined 6.4 per cent and 44.4 per cent respectively, while crude oil prices fell 7.6 per cent, ICICI Securities said in a pre-earnings note.</p><p>Rival Asian Paints last month reported improved margins, though it missed profit estimates, while Kansai Nerolac's profit rose led by a fall in expenses.</p>