Abhijit Roy stated that the industrial segment saw improved performance, which bodes well for the company in the months ahead
As muted urban demand and a slowdown in a few key markets led to tough market conditions in the third quarter of the current fiscal, Abhijit Roy, Managing Director and Chief Executive Officer (CEO) of Berger Paints India stated that the company was able to deliver high single-digit volume growth in the quarter. Roy highlighted that the company remains optimistic about the demand scenario going forward
“We remain optimistic about the demand scenario for the months ahead on the back of the favourable budget announcements, government spending on infrastructure and development and a good monsoon season,” Roy stated in the company’s earnings statement for the third quarter of the current fiscal (Q3FY25).
Roy stated that the visible uptick in the industrial segments is a good indicator of a demand improvement cycle. Despite the difficult market conditions, the company was happy to report an improvement in its net cash position and continued improvement in its market share even in this quarter, as per Roy.
The value of sales was lower due to the impact of the price drop taken in the prior quarters and stronger sale seen in the high volume, low-value products, Roy added. “Profitability for the quarter, while healthy, had negative growth on the back of the impact of price reductions in prior quarters, currency depreciation and inventory impact of monomer price increase,” he stated.
As per the MD and CEO of the company, it continues to register robust growth in the waterproofing, construction chemicals and wood coating segments. The industrial segment also saw improved performance, which bodes well for us in the months ahead, he said, while adding that the weaning of the price decrease impact also augurs well for the months ahead.
