On 2 November 2023: Tata Motors (BSE, NSE: BERGEPAINT) announced its Q2 2023-24 financial results, reporting a more muted result than was expected by analysts, but with some growth in the picture.
Consolidated Result Takeaways
Here are the overall consolidated highlights in Q2 results:
- The famous paint company reported lower-than-estimated Q2 earnings due to delayed festivities offset affecting the cost of raw materials and weak monsoon conditions.
- Revenue from Operations was at ₹2,767.30 for Q2 FY 23-24 versus ₹2,670.92 Cr in Q2 FY 22-23. This represents an increase of 3.61%. This has been the slowest revenue growth in 12 quarters for the paint company.
- EBITDA (without Other Income) stands at ₹473.65 Cr versus ₹363.95 Cr in the corresponding quarter of the previous financial year. This represents an increase of 30.14%.
- Net Profit for Q2 of the current fiscal year stood at ₹292.13 Cr versus 219.51 Cr for the quarter of the prior fiscal year. This is representative of an increase of 33.08%.
- Raw material costs, accounting for above 60% of the total expenses, fell by almost 6%, but the lower revenue growth affected the profits at the second-largest Indian paint company.
Additional Read: Q2 Results Dashboard
Management Commentary
The MD and CEO of Berger Paints India Ltd., Abhijit Roy, had some insights on the results and these are shared below:
- The paint company had double-digit growth in the segment of Decorative Paint, but with less value growth as the sale of low-end commodities was high in Q2.
- The sale of topcoats, especially in the area of exterior paint was adversely affected due to the delayed season of festivities and erratic monsoon. The company predicts improvements in sales in the next quarter.
- The company continues to work to expand its network by employing digital initiatives which will likely bear some fruit in the months to come.
- The vertical of General Industrial and Powder Coatings saw healthy value growth and strength in the area of profitability as well.
Also Read: Berger Paints India Share Price
About Berger Paints India Ltd.
The forces that drive the enigmatic paint company reflect the embodiment of the company’s founder, Louis Berger. He was instrumental in laying the foundations for the company way back in 1760 in the United Kingdom. The paint company came to India in 1923 and started its modest operations with enthusiasm and quality-centric products. Today, in India, Berger holds the position of one of the largest paint companies with a consistent growth record. On a quarter-to-quarter basis, the company has witnessed significant growth.
With a century in India, Berger Paints has come a long way. Originally, with just one factory in Howrah in West Bengal, it is now Berger Paints India Ltd., with large stakes held by many famous stakeholders. In its course of development in India, the firm changed hands several times. Headquartered in Kolkata, the company has more than 10 manufacturing plants around the country, including some plants overseas, in Nepal, Russia, and Poland. The company hosts a vibrant array of products including customised home and commercial solutions for discerning customers. Being committed to environmental and social sustainability, the company also focuses on best practices in these spheres in its endeavours within the organisation and outside it.
Source:
https://www.bergerpaints.com/investors/quarterly-reports.html
