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Berger Paints Q1 profit jumps 29%, flags crude, forex risks

Berger Paints Q1 profit jumps 29%, flags crude, forex risks
Berger Paints Q1 net jumps 28.6% at 405 crore, revenue up 12% · thehindubusinessline.com

Berger Paints is a big paint company in India, based in Kolkata.

It told everyone how much money it made in the first three months of its new financial year.

It earned more profit than it did a year ago, with profit going up by about 29 percent.

The money it got from selling paint also went up by almost 12 percent.

It sold more paint for homes and for cars, and both businesses grew well.

The company raised its prices, which helped it earn more money.

But a conflict in West Asia made the oil used to make paint more expensive and harder to get, raising some costs.

Even so, the company managed to keep its profit margins healthy.

Its leader says demand is getting better and the monsoon rain has helped.

He still worries about changing money values, supply problems and costly materials in the future.

Key facts

Net profit (Q1FY27)
Rs 404.34 crore (one report: Rs 405.01 crore), up ~28.5% YoY
Revenue from operations
Rs 3,583.75 crore, up 11.97% YoY
EBITDA (excl. other income)
Rs 607.4 crore, up 15% YoY
Sequential change
Net profit +20.78%, revenue -24.96% QoQ
Standalone value growth
12.7% for the quarter
Managing Director & CEO
Abhijit Roy
Key risks flagged
Forex volatility, geopolitical uncertainty, supply disruptions, raw material inflation
Outlook
Double-digit revenue growth expected to sustain, with margins within guided range

Quotes

Abhijit Roy

Managing Director & CEO of Berger Paints India

“"This inflation in crude based materials led to some moderation in our gross margins. However, prudent financial control and improved efficiencies led to an operating profit margin slightly ahead of the guidance range and a strong PAT growth in excess of 25 per cent on a standalone basis and 29 per cent on consolidated basis."”
thehindubusinessline.com
“The progressive demand improvement seen in the previous quarter continued into the first quarter of the year, enabling a standalone value growth of 12.7% for the quarter. The value growth outpaced volume growth on the back of the price increases, with the full benefit to accrue going forward.”
financialexpress.com

Sources

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