Latest news with #BergerPaintsIndia
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Business Standard
2 days ago
- Business
- Business Standard
Berger is number 2 by a margin in the decorative paint space: MD & CEO
Berger Paints India's revenue growth in the fourth quarter of 2024-25 (Q4FY25) was the strongest in five quarters, ahead of other listed paint majors. In an interview at its new headquarters in Kolkata, managing director (MD) and chief executive officer (CEO) Abhijit Roy tells Ishita Ayan Dutt on what clicked for the company. Edited excerpts: Amid intense competition, Berger's growth in Q4 was ahead of peers. What did you do right? We didn't do anything dramatically different. But our network expansion went off well. We did a fairly good job on the painter-contractor front. And, we launched a few interesting products. Our initiative of going deeper into urban markets where we have a weak presence – Pune, Mumbai, Bengaluru, Chennai and Hyderabad – yielded some results. Therefore, in spite of increased competition, we had a relatively better growth rate than all other players in the industry. On the industrial side, we are the leaders in protective coatings and there was some increased activity in the area. We got some of that advantage. You added feet on the ground. What was the addition? That was primarily for the urban markets. We added about 10 per cent in FY25. The results will be felt in the current year and the next. Given the competition, wouldn't it have been easier to gain market share if you had stayed the course on AkzoNobel acquisition? These are calls that have to be made with a lot of thought. For us, it would have helped to add some sales quickly. But the cost involved was too high. Do you think the same results can be achieved through organic expansion? We are the number 2 brand by far in the decorative segment. But our network size is one-third of the leader. So, my brand is known but products are not available in many places. Just increasing the product presence will give higher coverage and penetration — it's doable organically. Acquisitions are a high risk strategy; there are advantages in utilising one's own strengths. For organic expansion, you are investing about ₹2,500 crore in the next three years? Yes, we will be increasing capacity by almost 30,000 metric tonnes per month. That is more than enough for our needs. It is believed that JSW Paints is poised to acquire AkzoNobel. Do you see the fight for number 2 intensifying? The fight for number 2 is not intensifying; the fight for number 3 is going to intensify between Kansai Nerolac, Birla and JSW. Number 2 position is too far off – we will have a turnover of ₹20,000 crore by 2030. The big fight is for the third. What is the business outlook for FY26 – is urban demand picking up? Not so far – demand is sort of static. From Q3FY25 to Q4FY25, there was some improvement. But Q1FY26 is likely to be on similar lines to Q4FY25. We expect Q2FY26 to be better due to an early Diwali in September and further improvement in Q3. Overall, in FY25, we had a volume growth of about 8 per cent. But our value growth was only 2 per cent due to price drop and change in product mix. We should have 8-10 per cent volume growth this year as well. And value growth should be 5-7 per cent. And once this year is over, competition would have stabilised and then it would be normalised growth for everyone. Is the early onset of monsoon a dampener? The early onset may somewhat impact the May sales for all companies. But on a yearly basis, it won't impact the segment. You took a price hike of 1.5-2 per cent in Q4. What is the outlook on prices? We increased prices in November and got the advantage in Q4. I don't see further hikes — partly because raw material prices are benign. Will the anti-dumping duty on rutile – a raw material – have an impact? That will have an impact to some extent. The Indian Paint Association is fighting a case and the final hearing is on June 11. It may have a bit of an impact on profitability. But it would not be enough to warrant a price increase.
Time of India
15-05-2025
- Automotive
- Time of India
Berger Paints India's net profit up 18% at ₹262.91 crore in Q4 FY25
NEW DELHI: Berger Paints India Ltd on Wednesday reported an 18 per cent rise in consolidated net profit at Rs 262.91 crore in the fourth quarter ended March 31, 2025, on the back of volume growth. The company had posted a consolidated net profit of Rs 222.62 crore in the same period of the previous fiscal, Berger Paints India said in a regulatory filing. Consolidated revenue from operations in the quarter under review stood at Rs 2,704.03 crore against Rs 2,520.28 crore in the year-ago period, it added. Total expenses in the fourth quarter were higher at Rs 2,380.55 crore as compared to Rs 2,274.13 crore in the corresponding period a year ago. In the fourth quarter, sales volume grew by 7.4 per cent. The decorative segment delivered high single-digit volume growth with sequential improvement in value, supported by an improved product mix and marginal impact of price increase, Berger Paints said in an investor presentation. While the protective coatings sustained positive momentum throughout the quarter, reflecting consistent demand, automotive coatings had a stable growth, driven by favourable demand conditions and industry tailwinds, it said, adding that general industrial and powder growth was muted. "The tough market conditions continued into the fourth quarter with muted urban demand and increased competition intensity. In spite of this, we were able to deliver high single-digit volume growth," Berger Paints India Ltd Managing Director & CEO Abhijit Roy said. There was sequential improvement in value performance with reduced gap between volume and value growth, supported by easing impact of Q4 FY24 price reductions and momentum in the premium emulsion category, he added. The visible improvement in the industrial and decorative segments was good indicator of a demand improvement cycle, Roy said. In the fiscal ended March 31, 2025, its consolidated net profit was at Rs 1,182.81 crore as compared to Rs 1,169.82 crore in the previous fiscal, the company said. FY25 revenue from operations stood at Rs 11,544.71 crore against Rs 11,198.92 crore in FY24, it added. On the outlook, Roy said, "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. The strained geopolitical conditions in the immediate neighbourhood seem to have stabilised, which hopefully will continue."
Business Standard
14-05-2025
- Business
- Business Standard
Berger Paints India consolidated net profit rises 17.99% in the March 2025 quarter
Sales rise 7.29% to Rs 2704.03 crore Net profit of Berger Paints India rose 17.99% to Rs 262.05 crore in the quarter ended March 2025 as against Rs 222.10 crore during the previous quarter ended March 2024. Sales rose 7.29% to Rs 2704.03 crore in the quarter ended March 2025 as against Rs 2520.28 crore during the previous quarter ended March 2024. For the full year,net profit rose 1.08% to Rs 1180.40 crore in the year ended March 2025 as against Rs 1167.74 crore during the previous year ended March 2024. Sales rose 3.09% to Rs 11544.71 crore in the year ended March 2025 as against Rs 11198.92 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 2704.032520.28 7 11544.7111198.92 3 OPM % 15.8213.92 - 16.0816.62 - PBDT 439.12380.94 15 1922.661887.77 2 PBT 349.93294.05 19 1568.471556.89 1 NP 262.05222.10 18 1180.401167.74 1
Business Standard
14-05-2025
- Business
- Business Standard
Berger Paints gains after Q4 PAT rises 18% YoY to Rs 262 cr
Berger Paints added 1.31% to Rs 549.95 after the paint major's consolidated net profit jumped 17.98% to Rs 262.05 crore in Q4 FY25 as against Rs 222.10 crore posted in Q4 FY24. Revenue from operations rose 7.29% YoY to Rs 2,704.03 crore in the quarter ended 31 March 2025. Profit before tax for Q4 FY25 was at Rs 349.93 crore, up 19% on year on year basis. EBITDA (excluding other income) for the quarter ended 31 March 2025 was Rs 427.8 crore, compared to Rs 350.9 crore in the corresponding quarter of the previous financial year, representing an increase of 21.9% over the same period last year. On a standalone basis, the companys net profit surged 30.46% to Rs 236.92 crore on 4.37% rise in revenue from operations to Rs 2,347.45 crore in Q4 FY25 over Q4 FY24. On a full-year basis, the companys consolidated net profit rose 1.08% to Rs 1180.40 crore, on a 3.08% increase in revenue to Rs 11,544.71 crore in FY25 over FY24. Abhijit Roy, managing director & CEO of Berger Paints India, said, "The tough market conditions continued into the fourth quarter with muted urban demand and increased competition intensity. In spite of this we were able to deliver high single-digit volume growth, with sequential improvement in value performance with reduced gap between volume-value growth gap, supported by easing impact of Q4 FY24 price reductions and momentum in the premium emulsion category. The visible improvement in the industrial and decorative segments was a good indicators of a demand improvement cycle. Operating margin remained within the guided range, aided by improved gross margin and disciplined cost management. Q4FY25 saw the company achieve the highest Gross Margin % in the past 12 quarters. EBITDA for the quarter saw a strong improvement and we are happy to report that we are currently at zero gross debt and have further improved our net cash position at the end of the quarter. We continue to register robust growth in the waterproofing, construction chemicals and wood coating segments. The industrial segment also saw resilient performance, which bodes well for us in the months ahead. On the international front, our operations in Poland and Nepal saw good topline performances, with the Nepal operations seeing a turnaround on the back of improved business conditions and a low base. We remain optimistic about the demand scenario for the months ahead on the back of the favourable budget announcements, government spending on infrastructure & development, and a good monsoon season. The strained geopolitical conditions in the immediate neighbourhood seems to have stabilized which hopefully will continue. As always, Berger Paints India Limited is focused on living up to the legacy of trust and innovation and will continue to introduce our customers and industry influencers to a slew of innovative products and services as we progress. Our latest launches in the form of Roof Kool & Seal and Tank Kool have seen enthusiastic acceptance in the market and we hope to see similar reception to the remaining launches scheduled for the upcoming season. " Meanwhile, the companys board has recommended a dividend of Rs 3.80 per equity share for the financial year 2024-25, subject to approval of the shareholders at the 101st Annual General Meeting. Berger Paints India is engaged in retail, decorative and industrial painting solutions.
Reuters
11-02-2025
- Business
- Reuters
Berger Paints India's profit cushioned by industrial demand amid retail weakness
Feb 11 (Reuters) - Berger Paints India's ( opens new tab third-quarter profit fell less than analysts's had expected on Tuesday, as strength in the industrial business helped cushion demand weakness from inflation-hit retail consumers. The company's consolidated net profit fell 1.5% to 2.95 billion rupees ($34 million) in the quarter, but came above analysts' average estimate of 2.91 billion rupees, according to data compiled by LSEG. Revenue from operations rose 3.2% to 29.75 billion rupees, surpassing analysts' average estimate of 29.52 billion rupees. Strong volume growth in the industrial segment, which contributes 20% of Berger's topline, helped it partially mitigate "muted urban demand" for its decorative paints - used to paint house walls. For further earnings highlights, click Indian paintmakers have been offering heavy discounts since Grasim Industries' ( opens new tab foray into the sector early last year tightened competition, and cash-strapped shoppers chose cheaper, private brands. Smaller peers Kansai Nerolac ( opens new tab and Akzo Nobel India ( opens new tab forecast demand pick-ups, led by the federal government's consumption boosting measures. In contrast, market leader Asian Paints' ( opens new tab blamed urban stress and also issued a grim outlook. 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 OCTOBER-DECEMBER STOCK PERFORMANCE
