Berger Paints India's Q4FY16 consolidated net profit declines 60% yoy to Rs.92.77 crore : Broadly in line with estimates

India Infoline News Service | Mumbai |

The company’s consolidated revenue stood at Rs. 1,129.67 crore, up 8.59% yoy but down 7.1% qoq.

Berger Paints India
Berger Paints India, leading paint manufacturer company, reported consolidated net profit of Rs.92.77 crore for the quarter ended March 31, 2016, registering growth of 59.73% yoy, but decline of 16.23% qoq. The company’s revenue stood at Rs. 1,129.67 crore, up 8.59% yoy but down 7.1% qoq.

Its consolidated core operating profit of Rs. 159.38 crore for the quarter, clocked growth of 6.92% yoy but decline of 16.79% qoq. Operating profit margin for the current quarter at 14.11% contracted by 22 bps yoy and 164 bps qoq.

For the year ended March 31, 2016, the company reported consolidated net profit of Rs. 369.77 crore, growing by 39.69% yoy. Its consolidated revenue for the period stood at Rs. 4,634.12 crore, registering growth of 7.22% yoy.

Berger Paints India Ltd's core operating profit stood at Rs. 655.41 crore, recording growth of 28.33% yoy. Operating margin for the current period at 12.9% expanded by 143 bps yoy.

On standalone basis,Berger Paints India Ltd, reported standalone net profit of Rs.94.75 crore for the quarter ended March 31, 2016, registering growth of 34.05% yoy, but decline of 6.29% qoq. The company’s revenue stood at Rs. 1,011.10 crore, up 9.1% yoy but down 6.1% qoq.

Its standalone core operating profit of Rs. 152.19 crore for the quarter, clocked growth of 24.94% yoy but decline of 12.92% qoq. Operating profit margin for the current quarter at 15.05% expanded by 191 bps yoy but contracted by 118 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 354.87 crore, growing by 33.4% yoy. Its standalone revenue for the period stood at Rs. 4,132.61 crore, registering growth of 8.57% yoy.

Berger Paints India Ltd's core operating profit stood at Rs. 609.47 crore, recording growth of 28.2% yoy. Operating margin for the current period at 14.81% expanded by 232 bps yoy.

Berger Paints - Q4FY16 - Margin expansion continues led by benign input costs:

Berger Paints’ net sales grew by 9.1% to Rs 1,011 crore, 0.3% lower than IIFL estimate of Rs. 1,014 crore respectively. Gross margin improved by 438bps to 47.2% on account of decline in crude derived raw-material. This led to an overall improvement in the EBITDA margin by 191bps to 15.1% despite other expenses shot up by 173bps. The EBITDA margin was 164bps/155bps higher than IIFL estimate of 13.4%. Hence, EBITDA grew 24.9% to Rs. 152 crore, 11.9% higher than IIFL estimate of Rs 136 crore. During the quarter, depreciation cost increased by 10.4% and other income by 23.1%, this led PBT to grow at 35.1% to Rs. 140 crore. The tax rate increased to 32.2% as against 31.7% in Q4FY15, PAT grew at 34.1% to Rs. 95 crore, 15.5% higher than IIFL estimate of Rs. 82 crore.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 1129.67 1014.29 [0.31]
Standalone Net Profit 92.77 82.38 15.02

Standalone EPS for the quarter stood at Rs. 1.37.

Bloomberg estimated the company’s consolidated net profit at Rs. 89.25 crore.

Stock Commentary:

Berger Paints India Ltd is currently trading at Rs. 285.7, up by 2.6 points or 0.92% from its previous closing of Rs. 283.1 on the BSE.

The scrip opened at Rs. 284.7 and has touched a high and low of Rs. 289.9 and Rs. 280 respectively. So far 133075(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 19632.36 crore.

The BSE group 'A' stock of face value Re. 1 has touched a 52 week high of Rs. 301.45 on 18-May-2016 and a 52 week low of Rs. 171.05 on 16-Jun-2015. Last one week high and low of the scrip stood at Rs. 299.95 and Rs. 276.6 respectively.

The promoters holding in the company stood at 74.96 % while Institutions and Non-Institutions held 13.96 % and 11.08 % respectively.

The stock is currently trading below its 50 DMA.



***Note: This is a NSE Chart

 

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