Berger Paints announced sharp hike in operating profit during Q1 financial results
Berger Paints India Limited, the second largest paint company in India announced the company’s Q1 results for the quarter ended 30th June, 2022. Berger Paints today reported a 54% increase in revenue and 69% increase in operating profit for the first quarter ending 30th June 2022. The culmination of ongoing activities including launch of a slew of products (Luxol, PU Enamel, Longlife Flexo & Economy offerings in the undercoat category), renewed focused on distribution expansion coupled with robust consumer demand led to this stellar performance in the first quarter.
With increased awareness among consumers in the waterproofing space aided by new and innovative offering by Berger Paints, the waterproofing segment continued its handsome growth trajectory. The growth in decorative segment was led by the Premium and Luxury segment as demand in urban centers returned to pre pandemic levels. In the rural and upcountry markets, products targeted at bottom of the pyramid consumers did exceedingly well.
Highlights of the Consolidated Results:
- Revenue from Operations for the quarter ended, 30th June, 2022 was 2759.70 crores as against Rs. 1798.49 crores in the corresponding quarter of the last year, representing an increase of 53.44% over the corresponding period of last year.
- EBIDTA (excluding other income) for the quarter ended 30th June, 2022 was 404.84 crores as against Rs. 238.53 crores in the corresponding quarter of the last year, representing an increase of 69.72% over the corresponding quarter of last year.
- Net profit (after share of profit/loss of associates and joint venture) for the quarter ended 30th June, 2022 was 253.71 crores as against Rs. 140.48 crores in the corresponding quarter of the last year, representing an increase of 80.60% over the corresponding quarter of last year.
Highlights of the Standalone Results:
- Revenue from Operations for the quarter ended 30th June, 2022 was 2488.67 crores as against Rs. 1619.21 crores in the corresponding quarter of the last year, representing an increase of 53.70% over the corresponding quarter of last year.
- EBIDTA (excluding other income) for the quarter ended 30th June, 2022 was 373.72 crores as against Rs. 220.79 crores in the corresponding quarter of the last year, representing an increase of 69.26% over the corresponding quarter of last year.
- Net profit for the quarter ended 30th June, 2022 was 234.40 crores as against Rs. 135.09 crores in the corresponding quarter of last year, representing an increase of 73.51% over the corresponding quarter of last year.
Business Outlook: Commenting on the results, Mr. Abhijit Roy MD & CEO Berger Paints said, “Even amidst inflationary headwinds which adversely affected the raw material prices, operating profits rose sharply owing to better product mix and prudent cost control. The strong operating profit numbers are a testament to our strengthened brand equity and increasing contribution of differentiated products like Easy Clean & Anti Dustt”.
