Latest news with #BergerPaints
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Business Standard
5 days ago
- Business
- Business Standard
Berger Paints slips 3% on posting Q1 results; should you buy, sell or hold?
Berger Paints shares slipped 2.8 per cent on Wednesday, August 6, 2025, and logged an intra-day low at ₹556.2 per share on BSE. At 9:50 AM, Berger Paints' share price was down 2.6 per cent at ₹557.6 per share. In comparison, the BSE Sensex was 0.11 per cent lower at 80,621.97. The paint company posted its Q1 results during market hours on Tuesday. Post that, the stock closed 0.5 per cent higher at ₹572.5 per share. Berger Paints Q1 results Berger Paints reported an 11 per cent year-on-year (Y-o-Y) decline in first-quarter net profit to ₹315.04 crore, as compared to ₹354.03 crore a year ago. Revenue for the quarter under review came in at ₹3,200.76 crore, as compared to ₹3,091.01 crore a year ago, up 3.55 per cent. Besides, the decorative segment delivered mid single-digit volume growth; the volume-value gap narrowed, driven by improved mix and waning impact of prior price corrections. Gross margins remained stable across quarters inspite of increased competition. In Q1FY26, the gross margin stood at 40.1 per cent, 41.2 per cent in Q4FY25 and 39.3 per cent a year ago. Berger Paints earnings call highlights: The company aims to remain at 15–17 per cent Earnings before interest, tax, depreciation and amortisation (Ebitda) margin range. In standalone, it is operating Ebitda margins is expected above 17 per cent. Recovery shall come post monsoon, which will aid in the pickup of value as well as volume growth momentum. Management expects 7–9 per cent volume growth postmonsoons. Volume-value gap in the next three quarters is likely to remain at 1.5–2 per cent largely due to a mix of the products. If everything goes well, the company expects value growth to potentially reach the 9–10 per cent range in Q3/Q4FY26. From Q4FY26, Berger Paints expects an urban recovery to aid in overall revenue growth. In the earnings call, Berger highlighted that the initial dealer enthusiasm for new competitors has faded as expanded networks led to reduced margins. Nuvama Institutional Equities has maintained a 'Buy' and raised the target to ₹670 per share from ₹660 as the brokerage expects a gradual recovery in demand going ahead. InCred Equities has maintained 'Hold' on Berger Paints and has increased its target to ₹620 from ₹600. While the paint industry has been reeling from intense competition, the brokerage expects Berger to continue to outperform the industry in the medium. term
Mint
6 days ago
- Business
- Mint
After weak Q1, Berger Paints expects demand, margin recovery in July-September
Berger Paints India Ltd, the second-largest paints manufacturer in the country, expects a gradual recovery in demand and pricing in the ongoing fiscal quarter following early shoots of recovery in the June quarter. This comes after weak demand and an accident at a factory eroded Berger Paints's profit by over a tenth during the April-June period. 'The gradual and sequential improvement in domestic demand indicators and improving momentum in key markets are positive signs which were interrupted by the inclement weather but will recover in short order,' Abhijit Roy, managing director and chief executive of Berger Paints, said in a press statement. The Kolkata-based company continued to gain market share and currently has more than 20% share among listed paintmakers, according to its investor presentation. Berger Paints, however, flagged volatile geopolitics and tariff uncertainty as a risk. 'The volatile geopolitical situation and uncertainty resulting from the international tariff negotiations are potential risk/actors going forward,' said Roy. According to analysts at ICICI Securities, the paint industry's revenue growth is likely to recover in 2025-26 after declining in FY25. In a note dated 30 June, the analysts wrote that they had analysed the performance of the paints industry over the past 20 years and found a pattern—after two slow years, the industry usually bounces back with strong growth for the next two years. Since FY24 and FY25 were slow years for the industry, it will grow strongly again in FY26 and FY27, they said. The analysts defined slow years as revenue growing at less than 6%, and strong years when revenue grows at more than 12%. Berger Paints's June-quarter revenue rose 3.55% year-on-year to ₹ 3,201 crore, but fell short of the ₹ 3,272 crore that 16 analysts polled by Bloomberg had estimated, on average. Profit declined 11% to ₹ 315 crore. This included an exceptional loss of ₹ 37 crore because of a fire at the company's distribution centre and warehouse in Barasat, Kolkata. 'The fire originated at some other company's premise and unfortunately spread to our warehouse. The insurance claim filing is currently in progress, and related assessments are underway,' the company said in the statement. Berger Paints's decorative segment delivered mid single-digit volume growth. A better product mix and reduced effect of earlier price corrections helped narrow the gap between sales volume and value to 3.6% in the latest first quarter from 7% a year earlier. The paintmaker's earnings before interest, taxes, depreciation and amortization—or ebitda, a measure of core efficiency—improved 1.1% year-on-year to ₹ 528 crore in the June quarter. The cost of raw materials fell by almost 6% to ₹ 1,488 crore. Berger Paints shares closed Tuesday's trading on NSE 1.7% higher at ₹ 571.70 each, while the benchmark Nifty index fell 0.30% to 24.649.55 points.
Reuters
6 days ago
- Business
- Reuters
India's Berger Paints misses quarterly profit view on higher expenses, one-time charge
Aug 5 (Reuters) - Berger Paints India ( opens new tab reported quarterly profit below analyst estimates on Tuesday, as higher expenses and a one-time charge related to a fire incident weighed. Consolidated net profit shrank 11% to 3.15 billion rupees (about $36 million) in the quarter ended June 30. Analysts, on average, had predicted a profit of 3.62 billion rupees, as per data compiled by LSEG. Berger took a one-time charge of 368.1 million rupees during the quarter. For further earnings highlights, (click here). Indian paintmakers have been grappling with soft retail demand. "The early onset of monsoon played spoilsport this quarter," CEO Abhijit Roy said in a statement. However, India's largest paintmaker Asian Paints said last month that it sees some "green shoots" of demand recovery in the sector. It had resorted to discounts in the quarter to buy back customers, while it posted an in-line quarterly profit. Rivals, Akzo Nobel India and Kansai Nerolac posted lower quarterly profit. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT APRIL-JUNE STOCK PERFORMANCE -- All data from LSEG -- $1 = 87.7910 Indian rupees
Time of India
02-07-2025
- Entertainment
- Time of India
Kareena Kapoor Khan sports glasses in Berger Silk's new campaign
HighlightsBerger Paints India has launched a new campaign for its Brand Silk featuring Bollywood actress Kareena Kapoor Khan, showcasing the tagline 'Nothing Shines Like Silk.' The campaign presents a humorous take on luxury, with Kareena Kapoor Khan walking through her home in sunglasses to highlight the glossy finish of Berger Silk Glamor paint. Abhijit Roy, Chief Executive Officer and Managing Director of Berger Paints, emphasized that the campaign aims to reinforce the idea that Berger Silk offers unmatched sheen and luxurious walls for expressive homeowners. Berger Paints India , a paint brand, has launched a new campaign for its Brand Silk with Kareena Kapoor Khan , in a film that's as glossy and sassy as Bebo herself. Centred on the tagline 'Nothing Shines Like Silk,' the campaign takes a refreshing and humorous spin on luxury by literally making the paint's shine the hero. The film shows Kapoor walking through her home in her signature diva mode wearing sunglasses indoors, not for the sun, but for her blindingly beautiful, glossy walls. With a tone that's cheeky yet undeniably chic, the film positions Berger Silk Glamor as the choice for bold, expressive homeowners who want their walls to shine just as bright as their personalities. Adding to the ambiance, the upbeat track ' Kala Chashma ' perfectly sets the tone, infusing the campaign with a sense of style and celebration. With this campaign, Berger Paints continues to strengthen its position not just as a leader in innovation, but as a brand that celebrates style, individuality and self-expression —right down to one's walls, the company stated in a press release. Abhijit Roy, chief executive officer and managing director of Berger Paints said, 'Berger Silk has established itself as a leader in this segment, offering unmatched sheen and long-lasting performance. Silk's exceptional quality has made it the go-to choice for consumers who desire luxurious walls. With this campaign, we aim to reinforce a singular thought: when it comes to sheen, nothing shines like Silk. Mayuresh Dubhashi, chief creative officer, FCB Neo said, 'The idea was to bring glamour to life in a way only Kapoor could. The sunglasses became a fun, stylish metaphor for the high-gloss, smooth finish of Berger Silk —walls so shiny, you can't look away. We wanted the film to feel aspirational but with a wink. It's modern, fashion-forward, and a little tongue-in-cheek—just like the product, and just like Kareena herself' Watch the video here:
Time of India
29-06-2025
- Business
- Time of India
Paint giants lose their sheen as rivals slash prices, buyers trade down
India's decorative paints industry is grappling with intensified competition as new players enter the fray with aggressive pricing and discounting strategies. This growing pressure has squeezed profit margins and impacted sales realisation for leading firms, even as overall market growth remained subdued in FY25. Industry leader Asian Paints , which controls over half of the domestic market, flagged the dual challenges of weaker urban demand and competitive pressures from both new and established brands. 'Both the new entrants as well as established players adopted aggressive pricing and discounting strategies, further intensifying competition in the industry. These dynamics affected the value realisations as well as the profitability for Asian Paints throughout the year,' said Vice-Chairman Manish Choksi at the company's annual general meeting, according to a filing submitted to stock exchanges. He also noted that weak consumption trends and subdued discretionary spending extended repainting cycles and home maintenance schedules, leading to a drop in demand for architectural paints. 'Consumers were also moving towards more affordable options, even within the premium segments of decorative paint products across categories,' Choksi added. Despite a 2.5% rise in volumes, Asian Paints reported a 5.7% decline in the value of its decorative paints business in FY25, reflecting the pricing pressure and downtrading trend. Live Events Rural demand remained relatively stable, but it wasn't enough to offset the decline in urban markets. 'The overall weak consumption trends prevalent through FY25 had a dampening impact on the domestic decorative paints market, particularly the urban markets,' said Choksi. Other major players echoed similar concerns. Kansai Nerolac Paints , in its annual report, said that the industry showed resilience despite 'subdued demand and intensifying competitive pressures.' Rural demand stayed muted for much of the year, showing some improvement only in the third quarter. Berger Paints , too, noted that value growth in FY25 was 'muted despite volume momentum,' attributing it to the lingering effects of FY24's price reductions and weak consumer sentiment. The company did see some traction in the construction chemicals segment. Together, Asian Paints , Berger Paints, and Kansai Nerolac account for over 75% of the Indian paints market. But in the last five to six years, the competitive landscape has dramatically changed. New players like Pidilite (Haisha Paints), Grasim (Birla Opus), and JSW Paints have expanded their presence, while acquisitions by Astral (Gem Paints) and JK Cement (Acro Paints) have further fragmented the market. Last week, JSW Paints made a significant move by acquiring a controlling stake in Akzo Nobel India , the maker of Dulux Paints, for ₹12,915 crore. Despite current headwinds, paint makers are hopeful for a turnaround in FY26. They expect improved urban demand aided by tax breaks, easing inflation, and strong monsoon forecasts to drive growth. 'The decorative segment is poised for an improved performance, underpinned by a rebound in urban demand, driven by higher disposable incomes from recent tax incentives and easing inflation. Rural growth is likewise expected to sustain, supported by forecasts of an above-average monsoon,' said Berger Paints India. Kansai Nerolac also projected a 'modest growth' in FY26, banking on premiumisation trends, a growing preference for eco-friendly products, and government programmes such as 'Housing for All' and 'Smart Cities Mission'. According to an ICICI Direct report, the Indian paints and coatings market is currently valued at $9.6 billion and is projected to grow to $15.04 billion by 2029, at a CAGR of 9.38%. With inputs from PTI
