Berger Paints Q2 PAT remains flat at Rs 219 crore

11 Nov 2022 , 11:45 AM

The paint maker had recorded a net profit of Rs 219.21 crore in the same period last year. Total income from operations jumped by 20% YoY to Rs 2,670.92 crore during the period under review. Material cost rose by 26% YoY, employee cost increased by 13% YoY and other expenses were higher by 17% YoY in the second quarter. EBITDA (excluding other income) for the quarter ended 30 September 2022 was Rs 363.95 crore as against Rs 353.99 crore in the corresponding quarter last year, representing an increase of 2.81%. Finance costs amounted to Rs 24.12 crore, up 90% YoY. Profit before tax in Q2 FY23 stood at Rs 293 crore, down by 1.8% from Rs 298.39 crore in Q2 FY22. Tax outgo during the period under review was Rs 73.49 crore (down 7% YoY). Berger Paints said that BJN Nepal had a good quarter of performance both on the topline and profitability. The companys Polish subsidiary Bolix S.A had degrowth both in topline and profitability impacted by Ukraine war and high inflation negatively impacting the consolidated numbers. STP Ltd showed strong double-digit growth on sales and profits during the year aided by improvement in gross margin. SBL Speciality Coatings Ltd had a flat topline growth and muted profit growth effected by the downturn in fan industry. The companys Joint ventures Berger Nippon Paint Automotive Coatings and Berger Becker Coatings, both registered strong performance on topline and profitability aided by product price increases. In its outlook, the paint maker said: ?Demand in urban markets looks encouraging. Hoping for an uptick in rural demand on the back of good monsoon. Mix improvement likely in the coming quarters supported by increased sale of exterior coatings. Industrial sales outlook remain strong on the back of growth in auto sector and government spending in infrastructure.? It further added: ?Key raw material prices like Monomers and Solvents softened towards the end of Q2 and likely to remain so in Q3 and Q4. However, exchange depreciation on account of strong USD may be a concern.? Berger Paints India is engaged in retail, decorative and industrial painting solutions. The scrip rose 1.37% to currently trade at Rs 591.45 on the BSE. Powered by Capital Market – Live News