Berger Paints on Monday reported fiscal fourth quarter profit at Rs 185.69 crore, down 15.8 per cent from Rs 220.66 crore in the same quarter last year. It posted revenue at Rs 2,443.63 crore, up 11.7 per cent from Rs 2,187.51 crore in the fourth quarter of FY22. The Board also recommended payment of dividend of Rs 3.20 (320 per cent) per equity share of the face value of Re 1 each fully paid-up for the financial year 2022-23.
In terms of annual performance, Berger Paints posted double digit operating profit growth during FY23 with consolidated business growth at 11.7 per cent. The company added around 8000+ retail touchpoints in FY23 and installed 5200+ Colorbank machines. Its protective coatings business crossed Rs 1000 crore and the non-auto India industrial business recorded a top-line of above Rs 1450 crore. During the financial year, Berger Paints set up its biggest manufacturing facility in Sandila, Uttar Pradesh of 33000 MT capacity with an investment of Rs 1037 crore.
Berger Paints’ decorative and industrial business performance
Berger Paints’ decorative business showed healthy double digit volume and value growth both in excess of 14 per cent for the quarter in-spite of an inflationary environment aided by some mix improvement. “Construction chemical segment also recorded a robust growth for the quarter,” it said.
In terms of industrial business, automotive business witnessed another quarter of good growth aided by increased price realization. “General Industrial business also recorded a double digit growth for the quarter. Protective and infrastructure business had another quarter of steady growth aided by new business opportunities. Powder Coatings business line had significant degrowth on account of downturn in the fan industry,” it said in the regulatory filing.
Going forward
Berger Paints currently has approximately 40000 retailers and is planning to add 8000 retail touchpoints in FY24. While it has launched several ‘innovative products’ over the past years, it said that there are more in the pipeline and will subsequently also focus more on digital side of advertising, the company said. “There are plans for some capacity additions in existing plants in FY24 and a new plant will be commissioned in Panagarh, WestBengal by March 2025 to produce industrial paints and construction chemicals,” Berger Paints said.
“The company expects to continue its double digit growth in decorative business in the coming quarter as the demand outlook remains good in view of lower inflation and prediction of normal monsoon. Industrial sales outlook remains strong on the back of upturn in the auto and infrastructure sector,” it added.