Berger Paints India Ltd registered near 6 per cent decline in standalone net profit at ₹207 crore in the quarter ended December 31, 2022, as against ₹220 crore reported in the same period last year.

Revenue from operations on a standalone basis grew nearly 7 per cent to ₹2,419 crore (₹2,256 crore).

On a consolidated basis, net profit declined nearly 20 per cent at ₹201 crore (₹253 crore).

Due to capacity constraints, the company had to build up inventory in anticipation of the festival season and the inventory lasted throughout the period. Hence the benefit of lower RM prices could not be realised which impacted gross margins, leading to a decline in profitability, the company said in an analyst presentation.

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“Mix impact on account of lower sales of exterior emulsions due to extended monsoon, scale impact on overheads due to lower than anticipated growth in sales, and mark to market impact of exchange depreciation also impacted the profitability,” it said.

EBITDA (excluding other income) for the quarter was at ₹311 crore (₹344 crore), down nearly 9 per cent. The company’s scrip closed at ₹540.95, down 1.59 per cent on the BSE on Thursday.