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Earnings

Berger Paints Q1 results today: What you should watch out for

Updated : August 05, 2019 08:23 AM IST

Berger Paints India will report its June-quarter earnings on Monday and analysts expect the company to report a double-digit profit growth.

  • Revenue growth of around 11.3 percent at Rs 1,650 crore is what the street is expecting, the EBITDA likely to jump because oil prices are off their peak so margins are seen around 15.5 percent; net profit is seen higher by around 11.2 percent at Rs 150 crore.

  • Double-digit volume growth in decorative business seems like a foregone conclusion because both Kansai Nerolac Paints, as well as Asian Paints, reported that, so no reason to believe Berger won’t.

  • However, higher proportion of lower cost paints selling would reduce their realizations. The company has taken a 7 percent price hike in the last one year but the realization growth would just be around 3-4 percent and that’s because the lower price products would sell more.

  • Gross margins and EBITDA margins expected to expand both quarter-on-quarter (QoQ) and year-on-year (YoY) because crude and titanium dioxide prices have retracted from the peak.
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